Short/Long Term Capital Gains Reporting

Andrewjm

Hi

I'm sure this has been asked many times. I sold my entire non-Roth portfolio last year.

My 1099 Composite shows this…

Total short-term realized gain/loss cost-basis reported (445.29)

Total long-term realized gain/loss cost-basis reported 12,969.01

Total long-term realized gain/loss cost basis is available but not reported 2,800.56

Total long-term realized gain/loss cost-basis missing and not reported > Proceeds 395.51

TOTAL REALIZED GAIN/LOSS 15,324.28

I do not see any of this showing up in the 1040 after auto-importing the Composite PDF.

Free Tax shows the 92 transactions from Schwab

For the 1040:

Box 7a Capital gain or (loss). Attach Schedule D if required is $214

(Where is that # coming from?)

7b 'check if schedule D is not required' is auto-checked. Is that correct?

Don't I need to report this? 8949? Schedule D? Where are these forms? Shouldn't they be auto-filled from my imported data?

I also do not understand the cost basis is available but not reported. Do I need to worry about this?

As for the missing cost-basis I have no idea about that and Schwab couldn't track it down. It was from some small mutual funds purchased 25+ years ago. Can I assume the IRS does not really care about $395.51?

Thank you for any advice

A

Taylor

Hello Andrewjm,

In order to assist with how the entries are being reported, please contact our Support team inside your account using the Support Center at the top of the screen. This will allow our team to view the import as well as other forms that could also be reported in line 7a such as a 1099-DIV.

When a Schedule D and form 8949 are not required, it is likely that line 7a is being filled from a 1099-DIV form entry.

You may need to re-enter the 1099 Composite using the manual entry method with the Summary Statements option. Looking at the entries in your message, it seems the Short-term proceeds are missing. If this is not included on your 1099 Composite form, you may need to request a corrected form.

As a note, there are exceptions when the Schedule D and form 8949 are not required. The IRS lists these on the 1040 instructions, bottom right column of page 31:

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Please reach out to our team so they can look at these entries inside your account.