What to do with 1099 consolidated form ?

A

andy4

Ok I looked through the threads and still need some clarification on the 1099 consolidated statement IB sent out.

I use Taxcut.

On their worksheets/forms nothing matches up where to put the info' that IB sent me on their consolidated statement.

Do I need to upgrade to premium ?

I checked out the 1256 section in Taxcut and that doesn't either match up.

Any help would be much appreciated.

Thank you,
Andy
 
I THINK THE PROBLEM IS IB IS NOT GIVING A TRUE 1099. I QUESTIOEND THEM ABOUT IT. MOST BROKERS SHOW ALL YOUR SELLS AND THEN A TOTAL. IB IS JSUT GIVING YOU 1 PAGE WITH GROSS SALES AND SAYS GO TO THE WORKSHEET AND FIGURE IT OUT. THERE FUTURES ARE THE SAME. THEY'RE NOT SHOWING ENT PROFIT LIKE MSOT FUTURE COMPANIES. THEY BREAKDOWN THE LOSS AND THE COMMISSIONS. YOU MSUT ADD THOSE TOO TOGETHER FOR YOU ENT LOSS OR GAIN. I QUESTIOEND THEM WHY THEY GIVE NO 1099 LIKE OTHER COMPONIES THEY SAID GO TO THE WORKSHEET
 
Hi Jack,

I use Taxcut, the problem I'm finding is that I only have 4 lines of info' from IB. I traded futures.

Line 1 - REALIZED FUTURES PROFIT/LOSS
Line 2 - AGGREGATE FUTURES PROFIT/LOSS
Line 3 - INTEREST INCOME
Line 4 - COMMISSIONS PAID


I also checked out form1256 (I think) and that didn't match up either on where to put the info'.

I also traded with TransAct, they sent me a 1099B form, but again I only have info' in boxes, 8 and 11.

Neither company gave dates of purchases etc, I assume because all I traded were futures..

It looks like I need to be filling out a different tax form, maybe the premium up grade will have it ?

Thanks again for any help,

Andy
 
Andy:

Futures are easy

Take the Total from Line 1 , (Realized Futures Profit/Loss) and either subtract Line 4 (Commissions Paid) from LIne 1 if you had a profit, or add it to Line 1, if you had a loss. If one case you decrease the profit, in the other you increase your loss.

On Line 1 of the 6781 Form enter the net gain or loss. TaxCut will do the 40/60 split and once you close the 6781 Form go to Schedule D (I'd use the Forms from the menu line up top to get there). You should see the numbers on Lines 4 and 11.

If you paid any interest that should be shown on Form 4952 and should have been picked up during the normal interview process.

Some brokers provide a net amount on the 1099 for Line 1. IB does not. Thus the add or subtract above. There is some question, which does not apply to Futures, as to whether or not IB should supply a list of all stock sales on the 1099B for entry on Schedule D. IB claims you have to extract from the yearend statement where they show which items are being reported on the 1099s. I don't know who is right but you need not worry. Futures are a single line entry with the subsequent 40/60 split.

Jack
 
This brought out the importance of record keeping. I track every trade in my own spreadsheet and format it in Schedule D format for stocks and options (futures, as Jack said, are easy). This is done everyday when there are trades. At tax time, my own sales proceeds number matches the number on 1099 from IB very well--where there is a discrepancy, it is usually I forgot to enter the commission (I use bundled and it is very simple and easy to detect errors). And this is all IRS cares about, your number matches that on 1099 and I alwasy attach my spreadsheet itemizing each trade in tax filing. So, don't wait till year end to do it.
 
Hi Jack,

thank you :-)

I did it the way you mentioned - worked out :-)

Though I do still have one question (hope I'm not complicating things:-)

On the form 6781 I filled out, it gives the option of column b for loss and c for gain.

Could I just not place my gains/profits in column c and the commissions (losses) in column b ? That way numbers reported to the IRS would match up.

I did it both ways and ran error check, no problems came up from Taxcut. I just don't want to go through any hassles with a flag coming up for the IRS.

Thank you all again for your help.

Andy
 
Andy:

Congratulations on a profitable year!

Think of it this way -

Suppose you had a loss instead of a gain.
Where would you enter things?

I'd stick with my suggestion. If the IRS review notes a discrepancy you'll just get a letter asking about the difference in the numbers. A simple response will fix the "problem". However, the IRS should note the fact that commissions are reported separately and the difference between the numbers is the commission.

Jack
 
Hi Jack,

makes sense thanks.

Don't get too excited for me, I only had gains untill all those commissions were added in :-(
Oh well the costs of trading :-)

Thanks again,
Andy
 
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