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Posted by jo on March 23, 2008, 2:40 pm
Please log in for more thread options > jo wrote:
> > Is it necessary to report return of principle on Schedule D? It
> > always nets to 0, so has no effect on the bottom line. However, it is
> > broken down in my broker's 1099, so total proceeds from broker would
> > not match the government's value (assuming they are given this for
> > auditing) if I don't report them. It's such a tedious operation,
> > especially now that it appears that Turbo Tax is throwing all
> > transactions without a purchase date (all the ROPs) into short term
> > gains when you import.
>
> I hope I am not misreading the question. The proceeds of a stock sale is
> always the gross amount. If you buy a stock at $100 and sell for $100,
> you cannot ignore the transaction, you must report the full $100 sale
> and since you enter the cost of $100, the result is $0.
> The IRS matches up the gross proceeds, so that's what you must make sure
> you reconcile fully. You use the phrase 'return of principle' which
> really doesn't apply to stock transactions. Which is why I suspect I
> misunderstood.
> Joewww.blog.joetaxpayer.com
>
These transactions were for bonds and unit trusts, not stocks. They
appear in the proceeds from broker, so I guess my instinct that they
must be reported was accurate. I've done it that way before, and the
only reason I was going down this path was because when I imported
them into Turbotax, they all ended up in the Short Term gain category
and it was confusing as to how to get them out of there. I've since
found a worksheet for imported transactions that will do that, but
it's still annoying. Wish purchase dates and cost values for simple
transactions got captured so this didn't happen. You'd think the
brokerages would be able to download this information since it shows
up on their own records.
jo
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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