Do I have to report my 1099B's if both are zero capital gain/loss are zero? All of my income is retirement, div, int and under 25k?

[micnjudy]

In order to report I had to use a more expensive form of Turbo Tax where normally I could use 1040 EZ.

[MichaelL1 · Accepted solution]

1099B's are to reported even if there is no gain or loss.  IRS matches these documents up with the tax return.

If for example you have a sale of $1,000 and your cost basis is $1,000.  The IRS will send you a letter with the $1,000 sales price and have a zero cost basis and show it as a short-term gain.  

You are correct, with your income level the capital gain if any would not increase the tax on the return, but still must be accounted for.  If not, IRS could be contacting you a year or two from now.  

The choice is yours, I just want you to be aware of this. 

[LB641]

Over the years we have invested in Cd’s at various banks. Bought, Renewed,, Cashed in. Always received a 1099-Int. We received a Tax reporting Statement from our money manager. It has in it as one package 1099’s that we use, and things like a 1099-misc with all zero’s. Useless and not sure why. We also received in it a 1099-B. Never have we received a 1099-B from any bank for a CD. Every section of 1099-B is ZERO. 1b&c has a date. 1d&e have amounts. Box D is zero gain and zero loss.  With all the zeros, why did they issue a 1099-B, and do we have to report, since most all of it is nothing but zeros? And why, do we not receive 1099-B from banks on CD’s. It’s like they just sent us every IRS form, and now that we have it, do we have to report each one in TT?

[DianeW777]

Yes, you need to report it.  The IRS required the 1099-B to be issued and they actually look at the income first. Once the return is filed, even though they also see the cost basis, your return shows the zero gain/loss.

It is a bit confusing.  The interest earned on your certificate of deposit (CD) will be reported on the 1099-INT.  Once the CD matures and is redeemed, it is considered a sale of sorts and for this reason it is reported on the 1099-B.  You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds. 

Each year as the interest is reported it becomes part of your cost basis and for that reason you do have a zero gain or loss. It is a common tax action. Discounted bonds have always been reported such as corporate bonds, municipal bonds and others.

If they substitute document does include 1099-MISC and it's all zeros you can ignore that form. Only forms that have information must be reported on your tax return.

@LB641 

[LB641]

@DianeW777 

Thank you.

the 1099-B has never been issued in all of the years we have been purchasing, redeeming, renewing, etc. (CDs) at banks. We simply receive a 1099-Int.  Not sure why, or for what purpose it is even issued. Banks don't issue 1099-B for CDs. 

As to the section of description/type - CD is not an option, and not in the drop down. Apparently, TT forgot to include it.  That leaves us with selecting "stocks" or "bonds". Most have stated use stocks, but some say bonds. This is the frustration so many of us have with TT. They don't think the questions through, and don't offer the proper answer/selection. So we have to guess, and hope it goes through. Just as TT has yet to figure out that government paid employee pensions are not subject to RMD, and we have no say in what the pensions pay.

Thanks

[DianeW777]

Yes, I agree.  You can use 'Bond' and if you use 'Stock' it will also be accepted.  As long as it's reported you are good to complete your return. Thank you for expressing your experience.

@LB641