Declaring the Proceeds from Sale of Stock on Schedule D

I am doing my daughter taxes. She has no deductions to claim.

In 5/2013 she had stock in Verizon and AT&T. On that date she called Ameriprise Financial and her advisor along with her confirmation verbally to fidelity to sell her stock and transfer the proceeds directly to Ameriprise.

Her AT&T stock sold for after commission and handling fees resulted in a net amount of $3,401.58. On the same day, the same type of transaction was made on her Verizon stock resulting in a net amount of $2587.99.

Here is where I am lost. She received a 1099 Div from Fidelity and the only boxes filed in are box 1a and 1b, ordinary and qualified dividends. The amounts in both boxes are $42.20. She also received a 1099-Div for the Verizon stock. Same thing, only boxes 1a and 1b are populated with the same amounts of $26.27.
Then she received from Ameriprise a statement which is showing 1099-
div box 1a an amount of $70.84, box 1b $60.82, 2a $165.95 and box 2d an amount of $22.72 and lastly box 4 federal tax withheld an amount of $0.27. On the same sheet, the show 1099-B, boxes 9, 10, 11 and 12 with amounts of 0.00. Again, on the same sheet they have 1099-INT and all entries 1-13 show amounts of $0.00.. Lastly on the same sheet a 1099-MISC numbers 2-18 and again all amounts are $0.00 Sorry, one more entry 1099-OID and all entries show $0.00 but it has a note stating use bond-by-bond details from the 1099 OID to determine reportable amounts of Original Issue Discount income for your tax return. I have no clue?

The next page from Ameriprise shows a 1099_B*, proceeds from Broker and Barter Exchange transactions. Under that topic they show the sale of both stocks they they acquired from fidelity, the quantity of stocks, the proceeds of stocks, bonds, date of acquisition, cost or other basis and the amount under that heading is also $0.00, next heading is Wash sale loss disallowed and $0.00 is entered under that column, next Gain or loss and $0.00 is entered and lastly column tithed Additional Information and under that it shows Sale.

I am reading the instructions provided. I am seeing fill out Schedule D, form 8912, form 6251. I am just glancing at these instructions and I understand after reading them in depth, I probably do not have to fill out all these forms.

I guess my question is, can't I report the sale of stock from fidelity and the transfer of all the net proceeds from the sale invested on the same day to Ameriprise both on schedule D? I'm sorry for all the detail and the length of my question.

And my second question is I'm not sure how to enter this on the 1040, in other words what boxes would I enter this information besides on the schedule D if I can do it that way.

I truly thank you in advance for your help and assistance, and I am confident your reply will guide me to complete her return without having to pay for an accountant. I am a victim of identity theft and having a very diffficult financial struggle at this point in time.

Thank you again for your help!

I'm confused. Why was Ameriprise reporting anything if you sold the stocks at Fidelity. It sounds very much like what she really did is transfer the stock from Fidelity to Ameriprise and then had Ameriprise sell them. Note very carefully that often they don't have the basis on very old purchases or in light of transfers. You need to figure out what she paid for the stock to get the actual basis so you can compute the capital gain. I have to tell you that I Ameriprise is an absolute unmitigated freaking disaster. When I transferred my entire holdings from Ameriprise to another brokerage, the morons reported all the assets SOLD to the IRS at zero basis. This resulted in the IRS coming after me to the tune of a quarter of a million dollars. It took some real effort by my CPA and my new broker to undo the brain damage Ameriprise caused.

Once you compute the ACUTAL gain you can fill out the schedule D and then compute the tax to put on 1040 line 44. You need to read the instructions on the schedule D. There's not enough information on the form itself to allow you to directly go to the main 1040 with the numbers (there's a little worksheet at the end that computes the number that goes on the 1040).

Quote:

---

Quoting ocean51smt

---

I am doing my daughter taxes. She has no deductions to claim.

In 5/2013 she had stock in Verizon and AT&T. On that date she called Ameriprise Financial and her advisor along with her confirmation verbally to fidelity to sell her stock and transfer the proceeds directly to Ameriprise.

Her AT&T stock sold for after commission and handling fees resulted in a net amount of $3,401.58. On the same day, the same type of transaction was made on her Verizon stock resulting in a net amount of $2587.99.

Here is where I am lost. She received a 1099 Div from Fidelity and the only boxes filed in are box 1a and 1b, ordinary and qualified dividends. The amounts in both boxes are $42.20. She also received a 1099-Div for the Verizon stock. Same thing, only boxes 1a and 1b are populated with the same amounts of $26.27.
Then she received from Ameriprise a statement which is showing 1099-
div box 1a an amount of $70.84, box 1b $60.82, 2a $165.95 and box 2d an amount of $22.72 and lastly box 4 federal tax withheld an amount of $0.27. On the same sheet, the show 1099-B, boxes 9, 10, 11 and 12 with amounts of 0.00. Again, on the same sheet they have 1099-INT and all entries 1-13 show amounts of $0.00.. Lastly on the same sheet a 1099-MISC numbers 2-18 and again all amounts are $0.00 Sorry, one more entry 1099-OID and all entries show $0.00 but it has a note stating use bond-by-bond details from the 1099 OID to determine reportable amounts of Original Issue Discount income for your tax return. I have no clue?

The next page from Ameriprise shows a 1099_B*, proceeds from Broker and Barter Exchange transactions. Under that topic they show the sale of both stocks they they acquired from fidelity, the quantity of stocks, the proceeds of stocks, bonds, date of acquisition, cost or other basis and the amount under that heading is also $0.00, next heading is Wash sale loss disallowed and $0.00 is entered under that column, next Gain or loss and $0.00 is entered and lastly column tithed Additional Information and under that it shows Sale.

I am reading the instructions provided. I am seeing fill out Schedule D, form 8912, form 6251. I am just glancing at these instructions and I understand after reading them in depth, I probably do not have to fill out all these forms.

I guess my question is, can't I report the sale of stock from fidelity and the transfer of all the net proceeds from the sale invested on the same day to Ameriprise both on schedule D? I'm sorry for all the detail and the length of my question.

And my second question is I'm not sure how to enter this on the 1040, in other words what boxes would I enter this information besides on the schedule D if I can do it that way.

I truly thank you in advance for your help and assistance, and I am confident your reply will guide me to complete her return without having to pay for an accountant. I am a victim of identity theft and having a very diffficult financial struggle at this point in time.

Thank you again for your help!

---

I honestly do not think that you are doing your daughter a favor by attempting to do her return yourself. However, I do agree with flyingron that you will have to figure out her cost basis before anyone can do her taxes at all.

If you insist on doing it yourself, I recommend that you use software. If she is a minor, be aware of the Kiddie Tax rules.

Thank you all very much! I will take it to my accountant. I thought the tax basis was 28%. Guess I am incorrect!

Thanks again!

Quote:

---

Quoting ocean51smt

---

Thank you all very much! I will take it to my accountant. I thought the tax basis was 28%. Guess I am incorrect!

Thanks again!

---

I am going to have to go with the others and say an accountant might be better. While you gave great detail on some things, a few questions (and software) will make some the calculations much easier.