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2011 1099-B & Schedule D Changes

posted Jan 24, 2012, 11:16 AM by Krozel Capital   [ updated Jan 24, 2012, 11:23 AM ]

If you have investment accounts you may have received some information from your broker in the last few months about changes to Form 1099-B. Anytime you sell stocks, mutual funds or other capital assets you will receive a 1099-B at the end of the year from your broker. 

Starting in 2011, your broker is now required to not only report the gross proceeds from the sale, but also report your adjusted basis in the asset and whether the gain/loss is short-term or long-term.  Note that adjusted basis will only be provided for ‘covered securities’ which are generally any securities purchased after 2010 (so if you sell a stock in 2012 that you purchased in 2008, your 1099-B will NOT show your adjusted basis) . The IRS has also issued Form 8949 which is a new form that is required to be filed along with Schedule D.