tax question regarding stock sales

boedeker · #1 02-04-2007, 04:38 PM

so i was using turbo tax to fill out my taxes and had it scrape the info from tdameritrade for my 1099. well it came back that i sold 134k worth of stock this past year. which is true, but it did not adjust for the basis in the stock which was like 136k. so it claimed i owed like 30k in taxes. what am i doing wrong?

rocketplayer · #2 02-05-2007, 02:41 AM

Not putting the cost basis into the program

boedeker · #3 02-05-2007, 09:33 AM

well the program claimed that it could just log into my ameritrade account and download the necessary info, but i think that the 1099 prepared by tdameritrade is incomplete.

i heard on the radio that there was a delay because 1099s were [censored] up, do you think this is one of those [censored] ups?

or do i need to enter this crap by hand?

Esection · #4 02-05-2007, 02:28 PM

bo -

i dont think you have to enter it by hand. i would check out the TurboTax website, because they should explain any bugs their software has on there (and suggested fixes).

bav · #5 02-05-2007, 04:30 PM

The 1099 doesn't have the cost basis, it only reports the sales price. I've never used TTax's download feature and have always just entered my own data manually. But if they are JUST downloading the 1099 info and the broker isn't giving them that extra tidbit, the cost basis, then you will have to provide it.

boedeker · #6 02-05-2007, 08:27 PM

yeah, i looked at the 1099 and noticed this.

so what should i do? so the irs gets this form, from tdameritrade, but no info about my basis, am i more likely to get audited? thanks.

rocketplayer · #7 02-06-2007, 02:43 AM

[ QUOTE ]
yeah, i looked at the 1099 and noticed this.

so what should i do? so the irs gets this form, from tdameritrade, but no info about my basis, am i more likely to get audited? thanks.

[/ QUOTE ]

First, if you're going to invest I suggest you understand the tax code and study Schedule D and 1099 reporting a bit.

Second, the IRS NEVER gets cost basis and no you are not getting audited due to a 1099. You are required to keep accurate records to support your taxes. Get your trade tickets and fill in the cost basis, shares and purchase date for all of these sales and move on.