When filling out a "Schedule D" while doing your taxes, what exactly do you put in columns (d) and (e)?

Question

I sold some stocks this past year and received a "Form 1099-B". I understand that I am supposed to fill out a Schedule D using this information, but I don't understand what I list in columns (d) and (e) in order to determine column (f)--the Gain or Loss. In column (d) do I list the total proceeds I received from the stock sale (as is listed in 'box 2" on my 1099-B)? And I have no idea what to put in column (e)--the "Cost or other Basis". Thanks for any information you can pass along.

My particular confusion revolves around the fact that I purchased this stock about 17 years ago and it has obviously changed a lot (split, etc.) over that period. So while this past year I only sold a portion of the shares I own, I don't know how that compares to when I purchased it. In other words, in column (e) do I report what I paid for everything that I bought in 1990 or just a portion of it?

Answer 1

On Schedule D you have to list each stock sale separately. In column (d) you would put the proceeds for an individual sale of stock (not the total amount per 1099-B). For the cost in column (e), you would put your original cost of the shares sold. If the stock split, you would have a different basis. You would take your original cost and divide by the number of shares after the split. That would be your cost per share. Multiply this by the number of shares sold to get the cost basis of the shares sold.

Answer 2

Okay. Let's first look at the purpose of the form. It's designed to help you figure the gain on the sale of the investment. Before you get into the "nuts and bolts" of filling the form out, you need to get a clear understanding of what you're saying on there.

First, you need to know when it was purchased (or granted to you if it's an employee stock option). This is important because if you held it for over a year, it's a long term gain and will be taxed at a lower rate. If you sold shares that were purchased at different times, you can put the word "various" into the purchase date, but it will be figured as a short term capital gain if you do this. (Our software at the income tax office does this for us.)

In column D, list the Net proceeds from the sale. (What you realized out of the sale after broker fees.)

As to Cost or Other Basis:

If this is an employee stock option and you didn't purchase the stock... your basis (cost) is zero.

If you were allowed to purchase this as an employee of the company, put the amount you paid for it. Sometimes, the 1099 will list it as Cost per share and you have to multiply the cost by the number of shares sold. It gets a little complicated if you sold quite a few shares and they were acquired at different times for different amounts.

If you bought the stock to hold for a while and then resell, that's okay too. Just enter the amount you paid for it as the basis.

What makes it look complicated is the "Other basis" they throw in there. Sometimes there is an inherited investment, or one that is acquired through a stock split or other things, and the cost has to be adjusted by whatever amount... and that's and Adjusted or "Other" basis.

I hope this explanation helps. The only other thing I can think of just now is... if you lost money on the sale, put the loss in parentheses to show it as a negative number.

If you need more help, just call or go by an H&R Block tax office and ask. They'll be glad to help you with it, and you won't be obligating yourself to have them do the work on the return. Just don't wait until after Easter to do that... ;)

Answer 3

Column (d), yes, the proceeds as listed on your 1099-B for that sale. Column (e), your basis - that can be a little trickier. Start with what you paid for the stock that you sold. If you reinvested dividends and are selling the shares you got that way also, then you add the amount of the dividends to your original cost, since you already paid tax on that amount also.

Answer 4

Column (d) is the amount you sold the stock for and column (e) is the amount you paid for the stock when you purchased it. Subsequently column (f) will be the difference between the 2. If you sold the stock for more than what you paid, then you have a gain, if you sold it for less than what you paid, then you have a loss.

Answer 5

Page D-6 of the instructions explains this...If you are still uncertain take it to an accountant to calculate for you...