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Old 02-02-2015, 11:34 PM
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1099-DIV & 1099-B Capital Gains

I have a 21 year old daughter (full-time student) she has no earned income. She will be filing a separate tax return but we (her parents) will claim her as a dependent.

1099-div with 315 in box 1a, 281 in box 1b and 425 in box 2a. No entries in boxes 2b-d.
1099-b with 10,000 box 1d, 9,767 box 1e, 2 in box 1g gain of 233 and no taxes withheld.

What I can’t figure out is how to (or if I need to) add the 1099-div capital gains from box 2a onto the schedule d with the capital gains from the 1099-b.

I understand that if she didn't have the 1099-b she would not even need to file the schedule d, just add the amount to line 13 (on the 1040). So do I add the 233 (+2 adjustment) to the 425 for a total of 660 online 13?



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Old 02-03-2015, 01:42 PM
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[quote=kireton;19534]

I have a 21 year old daughter (full-time student) she has no earned income. She will be filing a separate tax return but we (her parents) will claim her as a dependent.===>>>>>>>>>>>>>>yes she in some situation as a dependent, still has to file her own return aslongas her income/unearned income exceeds a certain level.

1099-div with 315 in box 1a, 281 in box 1b and 425 in box 2a. No entries in boxes 2b-d.
1099-b with 10,000 box 1d, 9,767 box 1e, 2 in box 1g gain of 233 and no taxes withheld. ======>>>>>>>>her capital gain is $233;$10K-$9,767(basis/cost); $233 in box 1g means that she can’t deduct the loss of $233 due to wash sale rule so the amount ‘d be added to an original basis of newly purchased shares.

What I can’t figure out is how to (or if I need to) add the 1099-div capital gains from box 2a onto the schedule d with the capital gains from the 1099-b. =====>>>>>>>>Amounts shown on 1099div in Box 2a line 13 are capital gain distributions that are reported on Sch D of your tax return.or
you may be able to report the amounts shown in box 2a on line 13 of Form 1040/line 10 of Form 1040A rather than Sch D of 1040.

I understand that if she didn't have the 1099-b she would not even need to file the schedule d, just add the amount to line 13 (on the 1040). So do I add the 233 (+2 adjustment) to the 425 for a total of 660 online 13?=======>>>>>>>correct; you need to report the amounts shown on line 13. If the only investment income you have to report is capital gains distributions, you may put the figures directly on line 13 without using Sch D. If this is the case, you must figure your tax using the "Qualified Dividends and Capital Gain Tax Worksheet" on page 34 of the Instructions for Form 1040 .



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Old 02-03-2015, 05:57 PM
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thanks for the reply. I think I understand. The IRS fillable form I am using wasn't letting me add the 1099-div amount to the amount that I entered on the schedule D. I think I found where to enter it on the Schedule D.

Ugh - this tax stuff is so confusing. I don't have investment accounts myself ff so I have never had to deal with this - a bit of a learning curve here. I can handle my itemized deductions and all the rest but this is new as the kids just received the accounts from their great grandmother last year.



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Old 02-03-2015, 08:01 PM
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Quote:
Originally Posted by kireton View Post
thanks for the reply. I think I understand. The IRS fillable form I am using wasn't letting me add the 1099-div amount to the amount that I entered on the schedule D. I think I found where to enter it on the Schedule D.

Ugh - this tax stuff is so confusing. I don't have investment accounts myself ff so I have never had to deal with this - a bit of a learning curve here. I can handle my itemized deductions and all the rest but this is new as the kids just received the accounts from their great grandmother last year.
note;unless you have other capital gain or div income, you can directly report cap gain distribution on 1040 line 13 instead of using sch d of 1040;however, aslongas you have short term cap gain then you need to report cap gain dist as div income not as long term cap gain. in this case the cap gain dist is reported in box 1 of 1099div



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