I am working on my 2021 tax return and I received a 1099-B for sale of stocks. Here is what is listed
Acq date: 10.25.19
Sold date: 11.10.21
Cost Basis: $52,173.53
Under additional information the following is listed: the word Redemption is listed and the letters AA in small superscript font, and the next line has Original basis: $50,005.00
Which cost basis do I use when reporting sale of stock - the $52,173.53 or the $50,005.00
Also on the same form there is 1099-OID
on line 1 - Original issue discount for the year has an amount of $1,853.62 - looks like that is taxable income to me, is that correct?
There are 2 issues here ... the OID is reported as interest on the Sch B and the sale(redemption) to be reported on the Sch D. So you will use the 1099-B info as written on that form in the program. The OID interest (taxed separately) is automatically added to the cost basis as the broker has done.
thank you for your reply.
yes, I did enter the OID separately and it appears on my schedule B as taxable income and its being listed on line 2b as taxable interest on my tax return for $1855
And the sale of stock yes, I knew it would be listed on Schedule D and it would be long term in my case due to the holding period.
You're saying that the broker added the OID to my cost basis and I would use the cost basis listed under cost basis column for $52K - correct? because that is what I did and I have a gain of $2826 that I will be paying tax on
Just wanted to make sure I entered it correctly and reported the correct the amounts.
I didn't receive a Form 1099-OID in 2019 or 2020 via mail or from my online account for those tax years.
I received the 1099-OID for tax year 2021 showing that amount for $1854 on line 1 Original issue discount for the year on the form 1099-OID