Does client file to cover IRS ??

[AnnieR]

Just struggled through a return with 1099B that has 90 withdrawals from 5 mutual funds. There is no taxable income...$3026 in DIV, -$3000 in losses with a -$5000 carryover. Client should file to cover any questions and to have a record of the carryover? Brain dead after this. Interesting thing is, she had the same situation last year...unfortunately she didn't leave the receipt from HRB in the folder she gave me. Would have been enlightening to see it.

AnnieR

[Gail in Virginia]

Filing requirement is based on gross income, not taxable.

[Janitor Bob]

Just struggled through a return with 1099B that has 90 withdrawals from 5 mutual funds. There is no taxable income...$3026 in DIV, -$3000 in losses with a -$5000 carryover. Client should file to cover any questions and to have a record of the carryover? Brain dead after this. Interesting thing is, she had the same situation last year...unfortunately she didn't leave the receipt from HRB in the folder she gave me. Would have been enlightening to see it.

AnnieR

I would file to make sure you retain visibility of the carryover.

[AnnieR]

Thanks, that was my thought, just wanted someone else to verify it.

AnnieR

[kcjenkins]

Yes, you need to file it, not just to keep up with last years carryover, but to add this years loss. After all, without filing the D, the IRS knows about the sale price, but not the basis. YOU establish the loss by filing the D. Without filing it, there is no loss in the IRS file to carry over. In fact, they would see it as a profit since they see the sale without any offsetting basis.

[joanmcq]

and she'd get a really nasty cp 2000 in a year or so.