Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-22-2014, 01:12 PM
Junior Member
 
Join Date: Sep 2014
Posts: 1
1099-B; Tax on gain or total transaction?

Hello,

I had the great pleasure to receive notice from the IRS that I owe ~$2k tax on my 2012 tax return due to not reporting proceeds from sell of mutual funds (1099-B).

I reviewed the information included in the notice and also my statements and it appears that the IRS is saying I need to pay tax on the total value of the transaction rather than just the gain. Seems like I should only owe tax on the gain.

Should I owe tax on the total value of the transaction or only the gain?

For more information;
I sold stock in a mutual fund held in a taxable account and used the money for my 2011 roth IRA contribution.


Thanks

-Sam



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 09-26-2014, 08:07 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,100
Quote:
Originally Posted by samsteeley View Post
Hello,


#1;Should I owe tax on the total value of the transaction or only the gain?

#2;For more information;
I sold stock in a mutual fund held in a taxable account and used the money for my 2011 roth IRA contribution.


Thanks

-Sam
#1;Only the gain, NOT on the total value of the transaction(since you have your return of investment that is not taxable). Capital gains are taxes that you pay on profit as a result of selling an asset.

#2;as you can see, R- IRA contributions are not taxed at the time you contribute the funds to your R- IRA. However, your contributions come from post-tax income. You pay taxes on your income today, but not in the future



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Indirect intercompany debt transaction dharris S-Corporation 1 11-13-2013 01:15 PM
Total loss-selling rental property angrywoman Rental Real-Estate 4 12-29-2012 01:16 AM
Hurricane Ike Total Loss of Beach Home Ray Roeder Rental Real-Estate 1 02-17-2009 10:44 PM
Total Assets Mistake on 2007 return arcteryx S-Corporation 1 02-06-2009 08:55 PM
Stock Transaction Advice paresh24 Capital Gains 1 03-04-2008 11:12 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning