Stock Basis Reporting on Form 1099-B in 2011

March 18, 2011 - PRLog -- As of Tax Year 2011, Form 1099-B will provide the IRS info that will be recorded on the IRS internal "transcript" for each taxpayer and will allow the IRS to manually, or by computer, "match" the cost basis reported by the taxpayer on Schedule D, and propose adjustments to the taxpayer’s tax return if the amounts disagree.

New boxes have been added to Form 1099-B for reporting the date of acquisition (box 1b), cost or other basis (box 3), amount of loss disallowed due to a wash sale (box 5), whether the property sold is a noncovered security (box 6), amount of gain or loss (box 7), and whether the gain or loss is short-term or long-term (box 8). Brokers must complete boxes 1b, 3, 5, 7, and 8 when reporting sales of securities unless box 6 is checked. Other boxes on the form have been moved or renumbered.

There are new rules for:

How many forms must be filed for each transaction
Short sales of securities
Foreign currency
Transfer statements
Issuer returns
Use of transfer taxes and option premiums in determining gross proceeds
Basis reporting

Naturally, the 2011 version of Account Ability will include all of these changes.  Account Ability prepares information returns (1098, 1099, 3921, 3922, 5498, W2G) and annual wage reports (W2, W2C) electronically, on laser, inkjet and generic dot matrix printers.

Try Account Ability for free at

http://www.idmsinc.com
http://www.accountabilitysoftware.com
http://www.1099-software.com

# # #

Account Ability prepares information returns (1098, 1099, 3921, 3922, 5498, W2G) and annual wage reports (W2, W2C) electronically, on laser, inkjet, and generic dot matrix printers. IRS Bulk TIN Matching is included at no extra charge.