tax on stock sales?

Question

I had $2000 worth of stocks coming into last year. However I lost $2000 that year and I don't own any stocks now. I reveived my 1099 now and it showed I did not make any profit or loss? does that mean I cannot claim the $2000 in losses? I did not get any 1099 last year. I am confused. Thanks

Answer 1

You only get a 1099 in the year you sell the stock. Enter the amount and date shown on 1099 on schedule D. On the same line also enter the date you bought the stock (OK to enter a different year for this) and the price you paid for the stock back then. If you made a profit you'll owe a tax of, not more than, 15% of the profit. If you took a loss, you'll reduce your taxable income by that amount (up to $3,000). It does not matter what the value of the stock was coming into the year.

Answer 2

You don't report gains or losses on stocks until you sell them, or until the stocks become worthless because the company goes under.

I don't understand when you say you had stocks coming into the year but don't have any stocks now. What happened to them if you didn't sell them?

If you got a 1099, sounds like you did sell them. A 1099 doesn't always show the basis or original cost, although many brokers provide that info as a service to their customers. If your 1099 shows the sale but not the original cost, you'll have to go back and try to find how much you paid for the stock when you bought it.

Answer 3

I assume you sold the stock to make the $2000 loss. Your 1099 is only going to show the sale amount. For example, if you sold 100 shares of stock for $2/share, then the 1099 will show "income" of $200. On your tax return, you need to tell the IRS what your cost basis was for the stock (for example, you originally purchased the stock for $22/share, then your basis is $2200). That is how the IRS sees your $2000 loss.

You would not have received a 1099 last year if you did not receive any investment/interest income (i.e. from the sale of securities, dividends, interest, etc.)

Answer 4

1099 doesn't show loss are gains but transactions or dividends if any.when you file for income tax you can put in the info like what price you paid and how much you sold the stock for.of course you can claim the loss.

Answer 5

If you sold the stock, and you sold it at a loss, you may be able to deduct the loss.

If you had a profit, you'll pay tax on the difference between what you paid for it and what you sold it for.

The sale will go on a Schedule D.