topic How to calculate Proceeds in Investors & landlords

How to calculate Proceeds

mpapadop — Thu, 20 Mar 2025 15:36:29 GMT

Through my employer I'm eligible to buy company shares every year via an empoyee stock plan.

Last year I sold some of those shares that I had it for years, and for which I received a 1099-B that it doesnt look right to me.

I have already calclucated the Cost Basis for those shares, however I have a quetion related to Proceeds.

The Proceeds amount for tax purposes is the amount those shares sold before any commision fees or wire fees from the company that was taking care this sale or it is the amount I actually received after subtracting the commision fees or wire fess

Re: How to calculate Proceeds

Mike9241 — Thu, 20 Mar 2025 16:05:37 GMT

were those fees taken out of your proceeds? In any case, report the proceeds per 1099B you don't want the IRS to send you notices about the mismatch in records,

If the fees were taken out of your proceeds but not reflected on the 1099B proceed as follows:

if type D (long-term covered (ie Basis reported to the IRS) those fees will have to be entered in the adjustment column with code E

*****************

You received a Form 1099-B or 1099-S (or
substitute statement) for a transaction and
there are selling expenses or option
premiums that aren't reflected on the form
or statement by an adjustment to either the
proceeds or basis shown use code E

if Type E (long-term - noncovered) just add the fees to your cost basis.

Re: How to calculate Proceeds

mpapadop — Fri, 21 Mar 2025 16:02:10 GMT

Only the Wire Fees are included in the 1099B in Proceeds from what I can tell, which is the money charged for wire transfer from EU bank to US bank.

The Brokerage Commision Fees amount is not considered as part of the proceeds.

Re: How to calculate Proceeds

MarilynG1 — Thu, 27 Mar 2025 16:49:16 GMT

Brokerage fees would be miscellaneous itemized deductions subject to the 2% rule. You can enter them in TurboTax, but they are not deductible on your federal return for 2018-2025.

If you list them in the program, they may flow to your state return if your state allows those deductions. You can check your state's DOR Link to verify.

Here's more detailed info about Investment Expenses.

@mpapadop