Video: When to Use IRS Form 8949 for Stock Sales - TurboTax Tax
Reporting Capital Gains
And while it shouldn't necessarily rule out every potential investment of this type, the cost in taxes may keep these investments from being the best choice for your IRA. The 15,978 Social Security bonus most retirees completely overlook. In summary, you would avoid taxes of at least 150 on that 1,000 profit if you held those shares in an IRA. On the other side of the coin is tax losses. While you do not have to report money you lost because you do not pay tax on it, agents at the IRS expect to see details about your stock sales on your return, because Form 1099-B does not show whether your sales were.
These types of investments typically pay large dividends because of special tax rules that eliminate or greatly reduce the taxes these entities pay. This strategy makes them attractive investments, but it also means that the tax consequences get passed on to the investor.
Taxes reporting stock sales
Include the original date of purchase, the sale date and the amount you gained or lost. Enter stocks you held for one year or less into the first section of the form, and enter stocks you held for more than one year into.
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