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I have a client who give me 1099-B consolidated form. On it there are numerous long and short term investment with a line that shows summary of short sale and summary of Long term. I want to attached his 1099-B consolidated form with the return, so I only entered the summary lines. My question is how to report the gain on the investments on long term if the client did not receive any of it and the company just reinvested in his account
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"Short sale" is selling securities you don't have in the hope of the price falling. It is a type of transaction that generally results in short term gain/loss but it is not the same as short term investment.
Whether your client received the money or not does not make a difference. All the gains and losses still need to be reported as taxable income because your client already has constructive receipt and can do with it as he/she wishes without any restrictions (e.g. reinvesting in other securities).
Still an AllStar
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I'm guessing OP means short term sales not short sales.
The more I know the more I don’t know.
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Thanks for quick response.
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NP, @mnassimi!
Still an AllStar
