Greetings,
We are retired and do not make enough money to be required to file a tax return. We do not owe any taxes.
However, we have investments with TD Amertrade. We were told that because their 1099-Misc lists "Proceeds", "Cost Basis" and "Grand Total" separately we have to file a 1040 with a schedule D. This year that Grand Total will show a loss. We were told that the IRS will only get a document showing the "Proceeds", which, unless we file a full schedule D they will think the "Proceeds" are income. Is that correct?
thank you,
Andrew
Yes, they will absolutely look at the proceeds as income. You must file a return and put the cost basis to show what the true income amount is.
Thank you for getting back to me so quickly. I get it. Will file the return.
Do I also need to file form 8949 listing all the "sales and other dispositions" that make up the "Total Sales" of Schedule D? If yes, and I use TurboTax and fill out Schedule D will it automatically ask me for the needed infomation?
thanks again,
Andrew
Yes, Form 8949 will be automated when the 1099-B information is entered into the return. TurboTax may ask you if you want to import the information from TD Ameritrade. Then you will review the information to add the cost basis, You will also have the choice to enter it yourself.
Thank You!
By the way, which version of TurboTax do i need to use? We have very little income, owe no taxes and file schedules B, D & 8889 (HSA's).
all the best,
Andrew
The sch D pushed you into premiere. You can see all the forms and products here, just scroll down.