Posts Tagged "capital gains taxes"

New reporting rules may apply to your stock sales

Posted on Jan 7, 2011

Effective this year, new reporting rules could make it easier for you to report the tax consequences of selling a stock. Thanks to a 2008 law, responsibility for establishing your “basis” is being shifted to brokers and other financial institutions. But don’t discard your records just yet; the new rules are being phased in gradually and don’t apply to any securities acquired before 2011. Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) will be expanded to include the cost or other basis of stock sold during 2011. The form must also report whether the gain or loss on the stock sale is short-term or long-term. The expanded Form 1099-B will be used to report calendar-year 2011 sales and must be filed with the IRS and furnished to investors in early 2012. The new reporting rules were passed by Congress not only to make it easier for investors to calculate capital gains taxes, but also to make it harder for investors to underreport capital gains. For details or assistance with the new reporting rules, contact our...

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