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wasnt of isnt there a new tax law regarding reporting of unrealized gains & losses for the 2008 calander year or that the broker now has to provide their clients with proper documentation of unrealized gains and losses so the client can prepare the needed schedule d tax forms
State/Country relating to question: Missouri Already Tried: this is my first question and try
HelloCustomerUnrealized gains or losses are never reported on your tax return, and there is no new requirement which mandates that this be done.Unrealized gains or losses are strictly losses that you have on paper, such as when you buy a stock and then that stock either increases or decreases in value. On paper, you might show a gain or loss from your original purchase price of that stock, but you do not have an actual gain or loss until you sell the stock. When you sell the stock you then have a realized gain or loss, and that is the only time you report this on your Schedule D. You do not pay taxes or claim losses on anything except actual realized gains or losses.If this was helpful please press the Accept button. Positive feedback is also appreciated.Thank youCustomerand let me know if you have more questions.
I understand how the gains and losses works but I have a broker who doesnt provide any Gain or loss reporting to simplify my need for proper reporting to IRS on Schedule D
I thought a a new law came out that all brokers were required to now provide clients with necessary gain / loss documentation
if this is so i dont have it and can then go to broker and request needed info to complete my taxes in time
Hello againCustomerThank you for the clarification on your question. Your original post referred to the reporting of "unrealized" gains or losses, which is why I gave you the first answer that I did.You are correct that there is new legislation which will require brokers and other financial institutions to provide the cost basis of securities to clients to aid in the calculation of their gains or losses. However, this does not actually take effect until next year in 2010. Any securities that you acquire in the year 2010 and beyond will need to be tracked by the investment firm, and when those securities are sold they will need to provide you with the cost information. Securities acquired prior to 2010 are not affected by this new law.Here is a link to a brochure that outlines these new requirements.http://www.dtcc.com/downloads/leadership/whitepapers/costbasis_whitepaper.pdfIf this was helfpul please press the Accept button. Positive feedback is also appreciated.Thank youCustomerand let me know if you have more questions.
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad