Entering 1099-B Form for a CD Maturity in Brokerage Account with 0 Capital Gains

[fkhalilz]

Hello,

I have received a consolidated 1099 statement from JP Morgan for my brokerage account. In addition to a 1099-INT, and a 1099-DIV, this statement also includes a 1099-B form which lists a CD maturity event. This CD was purchased in 2023 and sold in 2024 and is listed as a Long Term Capital Gain (held over 1 year).  The amount of capital gains reported in the 1099-B form is $0. The interest earned from this CD is properly reported in the 1099-INT form.

My question is why is this CD maturity event has been reported in the 1099-B form? No other CD is listed in the form even though there was another CD that also matured in 2024.

My 2nd question is: Do I still need to enter the 1099-B form into TurboTax even though the capital gains reported is $0?

Thank you!

[fkhalilz]

Hello all Tax Experts!

I was hoping that some of you might be able to shed some light into my question. I'd appreciate any insight that you might have.

Thanks!

[MonikaK1]

If you sold the CD in 2024, enter the purchase price and sales price in TurboTax. The redemption/ maturity of a CD is treated as a sale or other disposition. The IRS information return matching programs look for dollar amounts that were entered on Form 1099-B and other information returns.

See this TurboTax help article and this one for more information about entering sales of investments.

[fkhalilz]

Thank you @MonikaK1 for your response!

I did not sell the CD in 2024. It simply matured by itself on the CD maturity date. This is the first time I have seen a CD maturity is reported on a1099-B form. Also as I mentioned, the capital gains reported on the 1099-B form is zero because the purchase and sale prices of the CD were equal.

I guess what you are saying is to go ahead and enter this 1099-B data into TurboTax just like a real 1099-B transaction where there is an actual capital gain or loss. Am I understanding this correctly?

Do you know under what circumstances a CD maturity is reported in 1099-B (in addition to 1099-INT)? 

Thanks!

[SusanY1 · Accepted solution]

A brokered CD, at maturity, is deemed to be redeemed or sold, and those are the instances you will see them on your 1099-B.  

Yes, even though the net effect in your case is a $0 gain or loss, it is best to go ahead and report it on the tax return as it is reported on your form.  This is because the "total proceeds" number is one that is used in automated IRS checks, so you want to be sure that matches!

[agoddin]

But Turbotax (downloaded version) does not have 'CD' as a type of investment sold. What now??

[DianeW777]

You can use 'Bond' as the type of investment. This will not change your return or taxable income.

@agoddin 

[Inquiry7]

Why is bond correct versus stock or another type of investment?  Why doesn’t intuit have CD as an option? 

[JamesG1]

You may select Bond or Stock (non-employee) under What type of investment did you sell when reporting the maturity of a CD.

@Inquiry7 

[CruzGalvez]

Hello.

I have the same case scenario. I didn't see any responses pertaining the omitted CD in form 1099B. Did you figure it out? 

[fkhalilz]

I simply entered the data reported in 1099-B as if it was a real capital gain/loss situation. For type of investment use Bond. Turbo Rax does not currently have an investment type of CD (which it should).

[TV60]

How do I do that in Turbotax? I currently have "Deluxe" and the questions related to 1099-B refer to securities and not CDs.

[AmyC]

If you sold a CD in your brokerage account, you enter it just like a stock with purchase date and price, then sale date is maturity date and price. This gives you the zero capital gain. You will select short or long term. Select covered when the basis is reported to the IRS. 

Your interest should be on 1099-INT.

@TV60 

[CruzGalvez]

What about the missing CDs on the 1099 B? only two of the four that matured in 2024 purchased through broker are listed.