Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 1:02:33 PM

I closed out a investment account with Charles Schwab in 2015 (108,855.00. I I did not roll into IRA. Do I need to report that as income?

0 1 3228
1 Best answer
Level 15
Jun 4, 2019 1:02:34 PM

Maybe. The closing of an investment account is not, in itself,  a reportable event. The selling of securities (stocks, bonds or mutual funds) to facilitate the closing of the account would be reportable. 

You're not allowed to rollover an "investment account" to an IRA. The fact that you make that statement, provokes this question: was the account you closed an IRA or some other tax deferred account? That would constitute a "distribution" and that would be reportable. 

If you had anything reportable, Charles Schwab most likely would have sent you a tax document; a 1099-B or a 1099-R.

1 Replies
Level 15
Jun 4, 2019 1:02:34 PM

Maybe. The closing of an investment account is not, in itself,  a reportable event. The selling of securities (stocks, bonds or mutual funds) to facilitate the closing of the account would be reportable. 

You're not allowed to rollover an "investment account" to an IRA. The fact that you make that statement, provokes this question: was the account you closed an IRA or some other tax deferred account? That would constitute a "distribution" and that would be reportable. 

If you had anything reportable, Charles Schwab most likely would have sent you a tax document; a 1099-B or a 1099-R.