Client come to my office with 1099B showing capital Gain of $1,500.

But he says this's not taxable income and I should not report it on his tax return.

Because he said he used the money from his 401K account to invest on these stocks.

He did not withdrawn money from his 401K. All money he invested in this stocks still in his account.

He chooses to manage these stocks himself instead of the fund manager.

His age is above 59.5 years. He does not receive any 1099R.

Is there any case that you do not need to report 1099B on the tax return?

Can we just ignore 1099B because client says it comes from 401K fund that client never withdrawn?

????

Please Help!