#form 1099b

[tradelogusa-blog]

The problem is that many stock traders use their 1099-B reports to estimate their taxes and may have underestimated what they really owe.

The culprit is that most broker 1099-Bs are not adequate for filing an accurate tax return, nor were they designed for that purpose. How can that be? The simple fact is that there are different IRS rules for taxpayers than there are for the brokers, mostly related to the wash sale rules.

[tradelogusa-blog]

Some major brokers have taken a troubling position in the way they report wash sales on the 1099-B for short sales. This caused big problems when taxpayers tried to reconcile and understand their 2011 1099-B reports. But it appears some brokers continue to use this baffling and incorrect method, which will cause more tax reporting problems for 2012 tax year.

[turbotax]

If you sell stocks, bonds, derivatives or other securities through a broker, you can expect to receive one or more copies of Form 1099-B in January. Don’t miss our tax tip article -- What is Form 1099-B: Proceeds from Broker Transactions? -- to get all the details.