1099-b realized gain is only 0.99, must i report?

[jtax · Accepted solution]

Yes you must report it. There is no under $10 limit. (To those who think there is please cite your authority.) Perhaps folks are thinking of the $10 requirement for a payor to report dividends interest on a 1099-DIV or 1099-INT.

However you must report all income from all sources unless there is a specific exclusion in the tax code. 

Also note the IRS will always receive the gross proceeds information on a 1099-B. It does not always receive the realized gain information. That depends upon what was sold and when it was acquired.

If you don't report and the IRS does not have basis info, it will treat your basis as zero and send you a bill plus interest. They have 3 years to get around to that. At that point you can tell them your basis, but it's not worth going there when you can put one line on an 8949/Schedule D and report it.

If the IRS did get basis info from your broker, even though you are required to report it, they may not notice or care because $1 more in income usually doesn't result in an extra tax and might be missed anyway in rounding. I would still report it because it is so easy.

[X1]

I don't think you have to report anything under $10.00.

[Duncanmcintosh473]

I'm confused first I see with a 1099b I can turn every earned dollar I to 10$ if properly filed at first impression I'd get taxt something on the earnings I'm just having trouble the fine print instructions on how to file that properly and if ive never done this before did I read correctly I can go back 3 years for retro?