Bought 3 months brokered CD in 2022 and matured in 2022. Tax Statement shows only 1099-INT only and no 1099-B.

[megank1]

Hello.

I bought a 3 months brokered CD from SCHWAB in 2022 and matured in 2022. I don't have stocks or other investment.  I received my  tax statement and I only see 1099-INT. Schwab did not issue 1099-B. I want to know do I need to report my brokered CDs on tax form 8949 and Schedule D?

[RobertB4444]

No, a CD only reports interest earned on a 1099-INT.  The interest rate is higher because it is brokered but that is the only difference.  Just report the 1099-INT on schedule B.

@megank1 

[hughmorg62042]

A CD you "bought," whether from a bank or a broker, is just a debt instrument that pays you interest either periodically or at maturity or both. The interest earned in 2022 is reported to you and the IRS on a 1099-INT. This CD was never a "security" or a capital-gains asset that you sell. When this CD matured in 2022, unless it had some kind of realized capital gain attached (not likely), its maturity does not get reported to you and the IRS on a 1099-B. You should not get a 1099-B for this CD's maturity and redemption. Your 2022 Form 1099-INT is all you need.
In fact, I bought a short-term-maturity CD from my broker in November 2022, one that paid a good interest rate. Its value was $245,000. It matured one month later and paid me $811.52 for about 4.5 weeks of using my cash. This purchase and redemption were not reported on the broker's 1099-B, but the $812 interest was on the broker's 1099-INT. Live long and prosper!

[megank1]

First of all, thank you for replying. Here is something I found out from my tax statements.

New 3 months Brokered CDs purchase and redemption(maturity) from Merrilledge = Yes, both 1099-B and 1099-INT

New 3 months Brokered CDs purchase and redemption(maturity) from Schwab = No, there is no 1099-B, only 1099-INT

This is why I am confused. Double standard?

[SteamTrain]

Maybe a double standard.

Some time ago, I bought some Broker CDs from Fidelity.

IF the term was under a year, when it matured, they didn't issue an entry for it on a 1099-B...just the 1099-INT.

IF the term was over a year, when it matured, they did issue an entry for it on a 1099-B, plus the 1099-INT.

[JohnH1]

Is one of them a consolidated tax statement? It may be reporting two different things

[megank1]

SteamTrain

When you bought the term under one year brokered cds from Fidelity and you didn't get the 1099-B, how did you report your tax? I know you need to report the interest. Did you also report your brokered cds on form 8949 and schedule d?

[SteamTrain]

@megank1 

When Fidelity included the redemption of the 1099-B/8949 statement, then I put it in my tax form 8949 sched D too.   I was just indicating that the 1 yr & greater maturity seemed to be the trigger point for them including the transaction in their 8949.  But, all of mine were zero loss/gain, so they were not consequential taxwise.

[megank1]

Steam Train

When you received 1099-B for your brokered CDs, what did you enter for the "Description" on form 8949? I am new to this so I have no idea how to enter brokered CDs description on form 8949. Can you show me some examples? Also, did you enter the dates you bought and sold/redemption?

[SteamTrain · Accepted solution]

I didn't enter them myself...the file imported OK from Fidelity directly into the forms 1099-B/8949.  So all I did was check that the term (short-term or long term...but all were long term for me) and zero gain was noted i.e. Purchase price and Redemption price was the same.

________

I'm not an expert but, in my Desktop software, based on what I saw was reported in my 8949 for those years....for a manual entry it would likely look like this  (There was a CUSIP number in the 1099-B for each, and I included that in my description, but don't know if it's necessary).:

[megank1]

SteamTrain

Last time you said you had less than 1 year term Fidelity Brokered CDs long time ago. You also said you only got the 1099-INT and you didn't get the 1099B because it was less than 1 year term.  Since you didn't receive the 1099B, did you file federal form 8949 and Schedule D anyways? I know some people say NO. I like to know did you file 8949 and Schedule D if you didn't receive 1099B?

[SteamTrain]

No...Fidelity didn't put it on the 1099-B/8949... Whatever the brokerage sends you on the 1099-B/8949 to you, that is also (usually) sent by the brokerage to the IRS too  (unless a box is checked that indicates it wasn't reported)  they didn't report it to the IRS Separately either.

So there was no reason to report myself it since purchase and redemption price was the same....i.e. zero capital gain.

______

Most CDs at banks are never to be reported (other than the interest they yield), no matter what the term.  Brokerage CDs seem to be (perhaps) a special case.  IF the Brokerage put it on their 1099-B/8949...I do too.  IF the brokerage doesn't report it at all on their 1099-B/8949...then I wouldn't either

.....(unless for some reason there was a gain or loss involved).

[SteamTrain]

But stop beating yourself up....IF your brokerage didn't report the redemption on the 1099-B/8949....and if you are really nervous about not reporting it....then go ahead and do so. 

Then it's reported and you can stop worrying about it.  It shouldn't affect anything with a zero$$ short-term gain/loss.

[megank1]

No, I have to match with the IRS. If my brokerage Schwab didn't issue 1099B for my brokered CDs matured, the IRS should not receive one either. Like you said, just report whatever we received. You said you didn't received the 1099B from Fideltiy for the less than 1 year term brokered CD and you didn't report to form 8949 and Schedule D, did you receive any letters from IRS?

[SteamTrain]

Nope, No IRS follow-up on it...and it's been more than 5 years.