This is my first year receiving a 1099-B for selling my shares of a mutual fund and I'm a little bit confused on how to report it on my taxes. I bought shares of a mutual fund every month from March 2010 to May 2011 when I sold them all. The 1099-B I received shows a gain of $144.93.
I use TaxAct online to file my taxes and it asks for "Date Acquired" and says I can enter "Various" for multiple purchases and then explains:
"Multiple purchases. If you acquired this investment through several different purchases you may enter "Various" in the date acquired field. You will then be asked in an upcoming question to determine the holding period as either long-term (all held more than one year) or short-term (held one year or less). If some of this property was held short-term and some was held long-term, then you will need to enter two transactions in TaxACT. "
So it sounds like I have to basically enter two different 1099-Bs, one for March 2010 - May 2010 for long term capital gains and one for June 2010 - May 2011 for short term gains? I'm not sure what to do since I only got one 1099-B and the only things it has are date of sale, shares redeemed, share price, gross proceeds, average cost basis, and gain. The last two say they are not reported to the IRS. I wouldn't know what to enter for the second 1099-B for long term gains.
I'm thinking it would be best just to enter one and say it's a short term gain. Since my gain is only $144 it won't make much difference either way.
I know when I look at my 1099-B I get for my ESPP (employee stock purchase plan) it breaks everytthing down into sections... Capital gains, losses, short term gains, losses... etc. For me, it wouldn't be a problem if I would just leave the stock alone and not sell it once it matures but I just can't help myself. Once it matures, I sell it and move it to a moneymarket account.
That's fine for me but worthless to you. You're handling mutual funds.
Everything should be in the 1099. Are you willing to consult a CPA or tax preparer (not H&R Block or one of those joints because, while they may know what they're doing, most likely they don't.)
My taxes are done by a family friend that does taxes for a living. I hand her my W2, 1099's, and a check for her work and I get taken care of. Her services are $80 a year for this and I consider it worth it because I make a whole lot of money that I want and need to keep for myself and not lose in taxes. She's always good at getting me a good amount in return. Legally of course.
I'd rather not have to pay anyone to look at this. It would be cheaper just to list it all as short term gain. Normally my taxes are really simple: 1 W-2 and 1 1099-INT. This year I have to deal with this mutual fund since I closed all my investment accounts with USAA after they screwed me over one too many times. Their 1099-B basically says "we use the average cost basis method. Nothing on this form has been verified so it may not be accurate. If you need anything else you're on your own." Real helpful