What information is provided on a 1099-B and where is it entered?


Solution Description

Brokers and barter exchanges must report proceeds from transactions to you and the IRS on Form 1099-B. Reporting is also required when your broker knows or has reason to know that a corporation in which you own stock has had a change in control or a substantial change in capital structure. You may be required to recognize gain from the receipt of cash, stock, or other property that was exchanged for the corporation?s stock. If your broker reported this type of transaction to you, the corporation is identified in the box below your name and address on Form 1099-B.


To enter Form 1099-B for Tax Year 2014 & 2015:
 

Box 1a - Description of property, Box 1b - Date acquired, Box 1c - Date sold or disposed of, Box 1d - Proceeds, and Box 1e - Cost or other basis:

  1. Go to the Dispositions screen.
    • Screen 17 (Individual)
    • Screen 19 (Partnership)
    • Screen 23 (S Corporate)
    • Screen 15 (Corporate)
    • Screen 22 (Fiduciary)
    • Screen 24 (Exempt Organization)
       
  2. Enter the Description of property.
  3. Enter the Date acquired (negative date= various).
  4. Enter the Date sold (negative date= various).
  5. Enter the amount of proceeds in, Sales price.
  6. Enter the amount cost in, Cost or basis.


To enter Box 1f- Code and Box 1g- Adjustments see Generating Form 8949, column F, for Various Codes for information.
 

Box 2 - Type of gain or loss: Short-term or Long-term:

Lacerte will automatically decide if the gain or loss is short-term or long-term based on the dates entered in Date acquired and Date sold. However, you can override a sale to be either.

To override a sale to be short-term or long-term without regards to the Dates entered:

  1. Go to the Dispositions screen.
    1. Screen 17 (Individual)
    2. Screen 19 (Partnership)
    3. Screen 23 (S Corporate)
    4. Screen 15 (Corporate)
    5. Screen 22 (Fiduciary)
       
  2. Locate the Dispositions section (first section listed on the screen).
  3. Enter a 1 or 2 in, 1= short-term, 2= long-term [O].


Box 3 - Check if basis reported to IRS:

If the Box 3 is checked on Form 1099-B, you do not need to make an entry in Lacerte. Lacerte defaults that the Basis is reported to the IRS.

However, if Box 3 is not checked, you will need to make an entry of '1' in, Basis reported: Blank= To IRS, 1= Not to IRS, 2= Not on 1099-B.


Box 4 - Federal income tax withheld:

  1. Go to the Dispositions screen
    • Screen 17 (Individual)
    • Screen 22 (Fiduciary)
       
  2. Scroll down to the Schedule D section
  3. Enter the amount in, Federal income tax withheld

See Entering Backup Withholding for a Partnership Return and Entering Backup Withholding for an S Corporation Return


Box 5 - Check if noncovered security

If checked, the securities sold were noncovered securities and boxes 1b, 1e, and 2 may be blank. Generally, a noncovered security means: stock purchased before 2011, stock in most mutual funds purchased before 2012, stock purchased in or transferred to a dividend reinvestment plan before 2012, debt acquired before 2014, options granted or acquired before 2014, and securities futures contracts entered into before 2014.

There is no entry in Lacerte for Box 5.


Box 6 - Reported to IRS: Gross proceeds or Net proceeds

If the exercise of a non-compensatory option resulted in a sale of a security, indicates whether the amount in box 1d was adjusted for premium.

There is no entry in Lacerte for Box 6.


Box 7 - If checked, loss is not allowed based on amount in 1d.

If checked, you cannot take a loss on your tax return based on gross proceeds from a reportable change in control or capital structure reported in box 1d. See the Form 8949 and Schedule D instructions. The broker should advise you of any losses on a separate statement.

See Generating Form 8949, column F, for Various Codes for information on entering Code L- nondeductible loss.


Boxes 8-11 - Regulated Futures Contracts, Foreign Currency Contracts, and Section 1256 Option Contracts see the form instructions for reporting and additional information.


Box 13 - Bartering

Shows the cash you received, the fair market value of any property or services you received, and the fair market value of any trade credits or scrip credited to your account by a barter exchange. See Pub. 525

 


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