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Posted by jo on March 24, 2008, 1:30 pm
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>
> >> > 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.
>
> You date the buy date and sell date accurately, and they appear as long - or
> short term as appropriate.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia
>
If I were working from a manually entered Schedule D in Turbo Tax, I
would have known how to easily change it, in the manner you indicate.
Instead, I imported my Sched transactions from my broker and Turbo Tax
doesn'tmake it obvious how to get to the worksheet that is the source
for the data that appears on Sched D. You can't right click on any
transaction and be shown the option to go to the Imported transactions
worksheet (new to me, altho I know I did this two years ago). I don't
know how I found it, frankly... stumbled around a bit... but I've got
everything fixed. The bottom line is that I couldn't edit them
directly on the TT Schedule D, so had to do a lot of searching to find
where I could do this editing.
jo
> --
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========================================= MODERATOR'S COMMENT:
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< 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 >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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