thank you

onestop73 · ‎12-07-2019

Learning how to handle these 1099-B's, I received the detail transaction report that shows the cost or basis, however on the actual 1099-b the column 1e shows a lower amount of cost and basis. Why is that?

Example line 1 shows on the detail the totaling of $4520.49 as proceeds, with the cost of $1579.50; (gain $2940.99); (Do I do anything with the $661.50 ordinary?)

however on the 1099-B states $4520.49 as Cost and Basis as $918.00?

Why also they reporting $4550.40? is that the difference of proceeds and reporting the sale expense of $29.91? Why the Basis was $1579.50 down to $918?

lauriem33 · ‎12-07-2019

You need to go darker when you cross out clients info. I can clearly read the name and social. Maybe remove this attachment.

IntuitCharlene · ‎12-07-2019

Thank you for bringing this to our attention. The attachment has been removed from this post to protect the privacy of the taxpayer due to this being a public forum. For additional information please see the terms of use: https://accountants-community.intuit.com/terms_of_use

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1stoptaxservice · ‎12-07-2019

thank you

rbynaker · ‎12-07-2019

This is some sort of employee stock option. Per IRS instructions the 1099-B cost basis reported is the purchase/exercise price of the stock. The taxpayer's cost basis is then adjusted by the amount of the gain on exercise that's already been included as compensation in their W-2. So for calculating taxable gain, use the supplemental report (which includes the compensation piece of the basis.) In your example, gain would be $2,940.99.

My guess is that there was a sales commission of $29.91 which is reducing the gross sales proceeds down to the net sales proceeds reported on the 1099-B. This is correct too.

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onestop73 · ‎12-07-2019

Thank you, Appreciate the time and feedback to help out.