USA 1099B & 8949 Question

[Prep10]

If broker 1099B form shows positive proceeds but form 8949 shows negative net activity (losses greater than gains) which takes precedence for reporting?

 

[BIG E]

Gross Proceeds from sale is shown as the sales price, Cost of investment is shown at either the cost basis at time of purchase, or FMV at time of inheritance or lower of cost or FMV at time of gift. The net amount is the gain or loss to be reported. You are supposed to report the complete transaction.

 

[Prep10]

Thank you BIG E. Well the 8949 shows short term & long term net Loss but the 1099B shows net positive proceeds. So that is my predicament here

 

[BIG E]

You are confusing some basic reporting issues.
You need to report Short term transactions separate from Long term transactions, which 1099-B is supposed to segregate for you.
What the 1099-B shows at "net" items is not what's important.
What's important is to show the items not only Short-Term vs Long Term, but show Gross Proceeds (Sales Price) vs Cost Basis to determine gain or loss of EACH ITEM. It's apparent that you're looking to report only net proceeds.

 

[Prep10]

You are confusing some basic reporting issues.
You need to report Short term transactions separate from Long term transactions, which 1099-B is supposed to segregate for you.
What the 1099-B shows at "net" items is not what's important.
What's important is to show the items not only Short-Term vs Long Term, but show Gross Proceeds (Sales Price) vs Cost Basis to determine gain or loss of EACH ITEM. It's apparent that you're looking to report only net proceeds.

Thanks again, I think I understand better now. So it's only important what's shown on the 8949 Proceeds - Cost Basis.

These match up pretty well on the 1099B but the 1099B has this "noncovered securities" section that's throwing me off.


short term 8949 sheet

short term 8949 — Postimages

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long term 8949 sheet

long term 8949 sheet — Postimages

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consolidated 1099B

1099b — Postimages

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Based on the above this return would be a net loss and be a credit? Can you take a look

 

[BIG E]

"Noncovered" means that the broker doesn't disclose what the cost basis is because either it was acquired prior to the broker holding the securities, or it was inherited or gifted, so the broker would not have that information. Noncovered securities amounts need to be coded in the software to identify those dispositions separately from the "Covered" transactions where the cost basis is shown. It's not necessary to review your input data.
I also would like to mention that in lieu of individually posting every transaction for a group of securities, you are able to enter group totals as they should appear on the brokerage statement with a code M