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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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In 2008 I bought $18,974 in silver for investment. We sold

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In 2008 I bought $18,974 in silver for investment. We sold it back to the distributor in 2009 for $25,550. a gain of $6,576.
In 2009 I filed our 1040A return but didn't include the $6576 capitol gain. Meanwhile
The Distributor filed a 1099-B in 2009 for the total amount of $25,550 and the IRS thinks I had an additional $25,550 income. The problem is that I originally filed a 1040A but any income reported on a 1099-B must be on a 1040. Question: Can I just file a 1040 now to report the $6576 instead of a 1040X or do I have to do the 1040X??
Thanks for an answer in advance.

Steve

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.
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