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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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My investment from 2012 was sold in 2015.Initial investment

Customer Question

My investment from 2012 was sold in 2015.
Initial investment amount:
$180,000.00
When I cashed it in I received a check for:
$197,537.50
I paid taxes on amounts:
2012 - Ordinary: $1,094.03 Capital Gains: $1,696.61
2013 - Ordinary: $1,804.21 Capital Gains: $1,148.33
2014 - Ordinary: $1,588.44 Capital Gains: $1,939.97
Totaling $9,271.59
That would value my investment amount and amount I paid taxes on to be:
$189,271.59
The amount I received, $197,537.50 minus the investment taxed amount, $189,271.59 is:
$8,265.91 far less than what was reported on my Capital Gains.
Why do I have to pay Capital Gains taxes on $11,984.26 (as reported on my 1099-B) vs. on $8,265.91? Where do I enter the previously declared interest and Capital gains I paid taxes on?
Submitted: 7 months ago.
Category: Tax
Expert:  Lev replied 7 months ago.
Were there any fees charged on that account ?We need to understand the difference between $11,984.26 vs. on $8,265.91 That is not related to tax calculations - but you definitely want to know where the money went?Please verify all your statements.
Customer: replied 7 months ago.
Advisor fees paid:
2012 $1415.80
2013 $2679.93
2014 $2501.83
2015 $1860.44
.... per their tax statements, totaling $8458.00
Customer: replied 7 months ago.
All other statements were as in the initial question.My investment from 2012 was sold in 2015.Initial investment amount:
$180,000.00
When I cashed it in I received a check for:
$197,537.50I paid taxes on amounts:
2012 - Ordinary: $1,094.03 Capital Gains: $1,696.61
2013 - Ordinary: $1,804.21 Capital Gains: $1,148.33
2014 - Ordinary: $1,588.44 Capital Gains: $1,939.97
Totaling $9,271.59That would value my investment amount and amount I paid taxes on to be:
$189,271.59The amount I received, $197,537.50 minus the investment taxed amount, $189,271.59 is:
$8,265.91 far less than what was reported on my Capital Gains.Why do I have to pay Capital Gains taxes on $11,984.26 (as reported on my 1099-B) vs. on $8,265.91? Where do I enter the previously declared interest and Capital gains I paid taxes on?
Expert:  Lev replied 7 months ago.
OK - that clarified the difference.You may deduct advisor fees as investment expenses - on schedule A line 23That may be deducted every year such fees were paid.But that doesn't affect your capital gain reported on 1099BYou do include that gain into your tax return.
Customer: replied 7 months ago.
I did for 2014, was planning to for 2015.The numbers still don't add up.Can I do anything with the fees from 2012 and 2013? I was unaware of the deduction then, and probably would not hit the 2%, if it was applicable in those years.
Expert:  Lev replied 7 months ago.
Yes - you may amend these tax returns - and if you did not report investment expenses - that may be corrected.
Expert:  Lev replied 7 months ago.
For 2012 tax return - be sure it is sent before Apr 15 - so you would not miss the deadline to claim a refund.Yes - 2% floor limit was applicable - but you may include your job related expenses, tax preparation cost, and some other items..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you will all tax related issues.