MyVirtualCPA : Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
MyVirtualCPA : You will have to file a form 1040X in order to report the additional capital gains incom
MyVirtualCPA : e
Customer: OK I guess I need to get the instructions for the 1040X.
Customer: So the 1040X will supersede the 1040A
MyVirtualCPA : Yes, it will
Customer: I don't see any place to indicate Capitol gains on the 1040X. I need the instructions.
MyVirtualCPA : There's not a place just for the capital gains
MyVirtualCPA : To figure up the 1040X you will need to prepare a return for yourself with the changes
MyVirtualCPA : Then, enter in the information from this new return (which is not sent - only the 1040X is sent)
MyVirtualCPA : on column A
MyVirtualCPA : Column B is your original return
MyVirtualCPA : and Column C is the difference between the two
MyVirtualCPA : Then, you will submit a schedule D along with the 1040X
MyVirtualCPA : the instructions to the form can be found here: http://www.irs.gov/instructions/i1040x/
Customer: Then I guess I will just have to indicate the adjusted Gross income and send in the paperwork showing the amount I bought it for and the and the 1099 for how much I received wwhen i sole it back.
MyVirtualCPA : You don't need to submit proof until you are asked
MyVirtualCPA : You will enter that information on schedule D
MyVirtualCPA : if the IRS has questions about your basis they will contact you and ask for that documentation
Customer: OK . I understand what I need to do.
Customer: Thank you
MyVirtualCPA : You're welcome
MyVirtualCPA : Is there anything else I can assist you with? If not, please rate my response as "excellent" so that I may receive credit for assisting you today
Customer: You were very helpful and I will give you an excellent.