Taxes on capital losses

[vnitta]

I have a net loss on my stock actions for the year. The 1099 does not become available until late Feb. All other documents are in. Should I wait to file the additional form if the net gain is outweighed by the net losses?

[KenH1 · Accepted solution]

You should wait for the 1099.  You can deduct up to $3000 of net investment losses, and any excess losses can be carried over to 2017 and beyond.

[vnitta]

Is submitting this 1099 required? Or would it just be in my best interest to wait for the deduction?

[KenH1]

It is in your best interest, but it is not required.  You won't actually submit the 1099.  The IRS will eventually match up what you reported with what they receive from the broker.  But if you're not reporting a loss, the IRS will not question it.

[vnitta]

Perfect. Thank you. I will wait. I just wanted to ensure I had the right understanding of the situation.

[KenH1]

When you do receive the 1099-B, make sure that broker has reported cost basis and gain/loss info.  They are not always required to.  If the broker doesn't have the cost basis, the IRS will believe that your entire proceeds resulted in a gain...unless you manually report it.

[briana-randle]

Can I file it in 2018 instead of 2017?