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Tax.appeal.168, Tax Accountant
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I bought stock in 2004 for 5,000. In 2011 I sold and received

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I bought stock in 2004 for 5,000. In 2011 I sold and received a check for 4638. XXXXX XXXXX turn a 1099-b for 4638. I received a tax notice for 1297. Isn't this a loss an should the sale of stock been taxed at 30%. What can I file to show a loss?
Welcome. THANK YOU for choosing Just Answer. My name is XXXXX XXXXX my goal is to help make YOUR life, a little...LESS taxing.

Since you sold the stock for less than the purchase price, it is a loss. Did you report the sale of the stock on your tax return (Schedule D and form 8949)? If you did not report the sale, this is why you are receiving a tax bill, because as far as the IRS knows you sold stock and received $4,638, which is considered income, which they are taxing you on. The IRS has no idea of what the purchase price of the stock was. You will need to amend your tax return for the year that the stock was sold to show the sale of the stock, purchase price and selling price.

Link to Schedule D/Instructions:

Form 8949:

Please ket me know if I can be of further assistance to you regarding this matter.

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