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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I closed out an investment account with my bank; On the tax

Customer Question

I closed out an investment account with my bank; On the tax 1099 b it said I had realized capital gains of $23000 and on 1099div long term capital gains of $35.62. What is difference? Are they both taxable income? Also on the summary statement is a line under supplemental activity that lists capital expenses -40000. Is this tax deductible? Investments were made by bank
Submitted: 9 months ago.
Category: Tax
Expert:  Stephen G. replied 9 months ago.

First of all, there should be some detail related to the $23,000., so you can report it on your tax return. You should have the proceeds and cost figures which net out to the capital gain of $23,000. and from the dates you should be able to determine whether or not it is long term which they should also have classified as such.

As far as the $35.62, that is a capital gain dividend from a mutual fund which is simply the way those are reported; that is reported net just like that and you don't need any further details to include it on your tax return as a capital gain dividend, which are always long-term by definition.

As far as the $40,000. is concerned, that wouldn't be "tax deductible"; that should be just reflective of a transaction where money was expended to make a purchase of a security, possible of a bond (as the number is *****) or some other item; it could even be showing up there if you made withdrawls from the account totaling that amount.

Expert:  Stephen G. replied 9 months ago.

Do you have any additional follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.

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