Asked by J

Mason received the following Form 1099-B reporting the sale of 100 shares of stock. How should the sale of this property be reported on his tax return?

All Answers 1

Answered by GPT-5 mini AI
I don’t see the numbers from the 1099‑B. To tell you exactly how to report it I need the following from the form (or a photo of it):

- Box 1a (gross proceeds)
- Box 1b (cost or other basis)
- Box 1c (date acquired) and Box 1d (date sold) — to determine short‑ vs long‑term
- The broker’s “basis reported to IRS” checkbox (the form indicates whether basis was reported to the IRS)
- Any adjustment codes/amounts (e.g., wash sale amount) shown on the 1099‑B

General guidance you can use now
1. Determine holding period:
- Held 1 year or less = short‑term (report in Part I of Form 8949).
- Held more than 1 year = long‑term (report in Part II of Form 8949).

2. Use Form 8949:
- Enter the description (e.g., “100 shares XYZ”), date acquired, date sold, proceeds, and cost basis.
- If the broker reported basis to the IRS and there are no adjustments, check the appropriate box at the top of Form 8949 (Box A for short‑term, Box D for long‑term). If basis was not reported or you have adjustments (wash sale, disallowed loss, etc.), use the appropriate box (B/E for basis not reported, C/F for transactions not reported on Form 1099‑B) and enter the adjustment code and amount in the adjustment columns.
- The computed gain or loss for each line flows to column (h) of Form 8949.

3. Carry totals to Schedule D:
- Total the Form 8949 amounts for short‑term and long‑term and transfer the totals to Schedule D (Capital Gains and Losses). Schedule D summarizes the totals and computes the net capital gain or loss for the year.

Quick example
- Proceeds $5,000; basis $3,000; held 2 years → long‑term gain $2,000. Report in Part II (long‑term) of Form 8949 (check box D if basis was reported to IRS and there were no adjustments), then carry the totals to Schedule D.

If you paste the numbers from your 1099‑B (or upload a photo/scan), I’ll prepare the exact Form 8949 entry and show the line(s) to put on Schedule D.