1099-B for 36 cents!
CMillard84321
ExxonMobil - 36 cents.
What would you do?
a. not bother to report it
b. report the sale with a cost basis of 36 cents
c. report the sale with a cost basis of 0
d. actually figure out the cost basis of the .004 shares
e. something else
I don't want to trigger an audit - would something like this
do that?
Thx!
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David Woods EA MST
> ExxonMobil - 36 cents.
>
> What would you do?
>
> a. not bother to report it
> b. report the sale with a cost basis of 36 cents
> c. report the sale with a cost basis of 0
> d. actually figure out the cost basis of the .004 shares
> e. something else
>
> I don't want to trigger an audit - would something like this
> do that?
You're worried about getting audited over 36 cents????
David M. Woods, EA, MST
(617) 723-2422
Boston, MA
www.rytercpa.com
Rich Carreiro
> Hi - I received a 1099-B for the sale of .004 shares on
> ExxonMobil - 36 cents.
>
> What would you do?
>
> a. not bother to report it
> b. report the sale with a cost basis of 36 cents
> c. report the sale with a cost basis of 0
^^^^^^
That's what I'd do. It's not worth taking the time to
figure out the true basis.
Though if your tax program is like TurboTax, TaxCut, TaxACT,
and the like, it (incorrectly) rounds each Sched D entry
(instead of rounding the total), which will turn the
proceeds into -$0- as well.
--
Rich Carreiro rlc...@animato.arlington.ma.us
Wayne Brasch
> Hi - I received a 1099-B for the sale of .004 shares on
> ExxonMobil - 36 cents.
>
> What would you do?
>
> a. not bother to report it
> b. report the sale with a cost basis of 36 cents
> c. report the sale with a cost basis of 0
> d. actually figure out the cost basis of the .004 shares
> e. something else
>
> I don't want to trigger an audit - would something like this
> do that?
Round off all numbers on your tax return. For example $25.52
becomes $26 while $19.26 becomes $19. This way the data
entry people at IRS and your State Revenue Department have
two less digits for each line to have to enter. That might
make them a little more accurate. If you do this, your $.36
can just be ignored.
Wayne Brasch, CPA, M. S. Taxation
Frederick E. Jorden
> Hi - I received a 1099-B for the sale of .004 shares on
> ExxonMobil - 36 cents.
>
> What would you do?
>
> a. not bother to report it
If you round to the nearest dollar this equals zero. So you have nothing
to report.
> b. report the sale with a cost basis of 36 cents
Only if your basis is 36 cents.
> c. report the sale with a cost basis of 0
This is one option.
> d. actually figure out the cost basis of the .004 shares
Is it worth your time, see c above.
> e. something else
>
> I don't want to trigger an audit - would something like this
> do that?
If it did, we really need a significant reduction in the
IRS's budget. It could generate a letter from the IRS.
--
Frederick E. Jorden http://fejcpapc.com/
Frederick E. Jorden, CPA PC
10049 Midlothian Tpk - 2-H Richmond, VA 23235 EMAIL fej...@erols.com
(804) 320-6210 FAX (804) 320-6211
DORFMONT
of the income would be rounded down to zero. Zero minus zero
basis = zero capital gain/loss. I would not even bother to
report it unless there was a definite probability that your
cost basis in that .004 share was enough to make a
difference ($50 or more) in your taxable income if you took
the loss.
Linda Dorfmont EA
Ken Mintz
> Hi - I received a 1099-B for the sale of .004 shares on
> ExxonMobil - 36 cents.
...
> I don't want to trigger an audit - would something like this
> do that?
I don't think it would trigger an audit. But it is likely
to trigger a Notice of Assessment because Sched D won't
match up with the 1099s. That happened to me once.
> What would you do?
> a. not bother to report it
> b. report the sale with a cost basis of 36 cents
> c. report the sale with a cost basis of 0
> d. actually figure out the cost basis of the .004 shares
> e. something else
The right thing to do is #D. But for 36 cents, even I would
do #C. When you round to a dollar, it should net to $0, no
matter which way you go.
-- Ken Mintz
TexTax2
>
> a. not bother to report it
> b. report the sale with a cost basis of 36 cents
> c. report the sale with a cost basis of 0
> d. actually figure out the cost basis of the .004 shares
> e. something else
>
> I don't want to trigger an audit - would something like this
> do that?
I vote for (a). I sincerely doubt that IRS will get aroused
over an amount that would be rounded to zero anyway.
Hank Sievers
CBotella
> ExxonMobil - 36 cents.
>
> What would you do?
Since the IRS wants us to round to dollars, 36 cents would
be zero. But so as not to trigger any questions, I would
enter it as $1, with a cost basis of $1.
Geulincx
> Though if your tax program is like TurboTax, TaxCut, TaxACT,
> and the like, it (incorrectly) rounds each Sched D entry
> (instead of rounding the total), which will turn the
> proceeds into -$0- as well.
TurboTax does _not_ round each Schedule D entry.
--
geulincx
D. Stussy
issue it because the 1099-B series does not have a minimum
dollar floor like the other 1099 series information
documents do.
Katie Jaques
>> Hi - I received a 1099-B for the sale of .004 shares on
>> ExxonMobil - 36 cents.
>>
>> What would you do?
>>
>> a. not bother to report it
>> b. report the sale with a cost basis of 36 cents
>> c. report the sale with a cost basis of 0
>> d. actually figure out the cost basis of the .004 shares
>> e. something else
>>
Well, if my basis in that .004 share was $100, I'd probably
want to report it! Maybe even if the basis was $50.
I don't know about you, but when I put 1099's into my
computer software, I put them in at dollars and cents, and
the system rounds to the nearest dollar. I'd include the 36
cents in the input and let the system round to zero. And
I'd report the cost basis as zero, unless I thought there
was a loss big enough to have some effect. It can't get any
WORSE than that.
Then the transaction will show up on the return and no
questions will be asked.
Katie in San Diego
The foregoing is intended for educational purposes only and
does not constitute legal or professional advice. The views
expressed herein are those of the writer and are not
expressed on behalf of her employer.
Barry Rubin
> Hi - I received a 1099-B for the sale of .004 shares on
> ExxonMobil - 36 cents.
>
> What would you do?
>
> a. not bother to report it
> b. report the sale with a cost basis of 36 cents
> c. report the sale with a cost basis of 0
> d. actually figure out the cost basis of the .004 shares
> e. something else
>
> I don't want to trigger an audit - would something like this
> do that?
I would ignore it. Then if the IRS sends you a letter about
it you a) can call a local TV station and get on the evening
news or b) contact your U.S. representative or senator and
let 'em investigate the matter. Either way it would prove
entertaining.
Barry
--
To reply via e-mail, remove the nets.
http://www.rubincpa.com
D.F. Manno
>>> ExxonMobil - 36 cents.
>>>
>>> What would you do?
<snip>
> Well, if my basis in that .004 share was $100, I'd probably
> want to report it! Maybe even if the basis was $50.
Let's see: $100 divided by .004 equals $25,000. The only
stock in that neighborhood is Berkshire Hathaway, and if
that stock dropped to where .004 share was worth only 36
cents (36 cents divided by .004 equals $90), you've got more
problems than how to report the 1099B on your tax return.
--
D.F. Manno
domm...@netscape.net
"If you choose not to decide, you still have made a choice."
-- "Free Will," Rush
CMillard84321
cost basis - just to be safe
is my thinking clear - the best-case scenario (as far as
pleasing the irs) is to pay full tax on the 36 cents
its almost like being too cautious - but it makes sense as
far as reducing suspicion
i dont know - im tired
lol
Art Kamlet
>> Hi - I received a 1099-B for the sale of .004 shares on
>> ExxonMobil - 36 cents.
>>
>> What would you do?
>>
>> a. not bother to report it
>> b. report the sale with a cost basis of 36 cents
>> c. report the sale with a cost basis of 0
> ^^^^^^
>
> That's what I'd do. It's not worth taking the time to
> figure out the true basis.
>
> Though if your tax program is like TurboTax, TaxCut, TaxACT,
> and the like, it (incorrectly) rounds each Sched D entry
> (instead of rounding the total), which will turn the
> proceeds into -$0- as well.
My understanding is the figures entered onto any tax form or
schedule can bed rounded up or down, but worksheet entries
or individual components of items that go on a form or
schedule stay in dollars and cents until entgered on a form
or schedule.
So to calculate total Line 7 wages you would not round the
individual wages, bugt would round total wages, And you
would not round individual dividend figurs that appear on
schedule B.
Having said that, the IRS turns around for e-file
formatting, and asks for rounding of all dollars of each W-2
and 1099-R form included in the efile, which is different
than what it asks for in the paper return.
--
Art Kamlet Columbus, Ohio kam...@infinet.com
Rich Carreiro
> So to calculate total Line 7 wages you would not round the
> individual wages, bugt would round total wages, And you
> would not round individual dividend figurs that appear on
> schedule B.
I agree with you, but that's not what many consumer
tax programs do. They round each Sched B item, etc.
--
Rich Carreiro rlc...@animato.arlington.ma.us