closed investment account, how to report loss
Hello,
My first experience with a financial advisor. In 2021, I invested $100K in a 'conservative' portfolio fixed income, bonds, etc. There were 2 accounts funded with $50K each, Dorsey Wright Tactical Fixed Income and Clark Navigator Personalized UMA. I held these accounts until I closed them in July/2024 resulting in a loss of $10,379. I received 1099-B for each account with no amounts listed, doesn't show any losses. The 1099-DIV part shows I received about $2000 in dividends. How do I enter the $10,379 loss? The financial advisor sent me a Market Value Summary that showed the Inception Date, Beginning Value, Net Contributions and Withdrawals, Portfolio Gain/Loss and Ending Value. He said show it to your accountant and they will incorporate your losses on the tax return.
I don't have an accountant and my return is pretty basic except for this portfolio loss. I'm almost finished filing electronically but I'm stuck at this point. Any help or advice would be appreciated.
Answers
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If you didn't actually sell any of these assets, you have not yet realized a loss.
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I told my advisor I was tired of losing money over a 2 year period in an ultra conservative investment and I wanted the account closed. Wouldn't that have generated sales of assets that would show a loss? He sent me a summary and said that because it was an individual account I would be able to write off the losses on my tax return. I started with 100,000 in 2021 and when the account was closed in 2024 I received checks for both accounts totaling 89,621 resulting in a 10,379 loss. I don't know where the lost money went, advisor blamed inflation rising interest rates and bad bond market.
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You need a brokerage statement that reflects all of the transactions made in your account. They should have sent you one this month or perhaps it's available online. If you don't have such a statement, contact them.
If there have been sales in past years, they should have sent you such a statement every year.
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Thank you, I have seen the type of statements you are referring to that show many multiple transactions that occurred over the years I owned this portfolio. It's all beyond me, thanks for your input…
