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I have a c corp that has a brokerage account, the broker does not issue 1099b on c corp accounts how do I report stock gains and losses what info do I need.

Forum|Forum|6 years ago
June 1, 2019
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Do I have list each buy and sale and the gain or loss and whether it was short term or long term gain or do I simply add up the total gain and add it to income.

TurboTax Deluxe Online

Best answer by TaxGuyBill

You can probably put the summary (combined totals of Basis and Sale price) onto Form 8949.

See "Special provision for certain corporations, partnerships, securities dealers, and other qualified entities." on page 3 of the instructions for Form 8949.

https://www.irs.gov/pub/irs-pdf/i8949.pdf#page=3

This special provision applies to certain corporations, partnerships, securities dealers, and nonprofit organizations. Individual taxpayers aren't eligible except in rare circumstances.

You may enter summary totals instead of reporting the details of each transaction on a separate row of Part I or II or on attached statements if:

You file Form 1120S, 1065, or 1065-B or are a taxpayer exempt from receiving Form 1099-B, such as a corporation or exempt organization, under Regulations section 1.6045-1(c)(3)(i)(B), and
You must report more than five transactions for that Part.

If this provision applies to you, enter the summary totals on line 1. For short-term transactions, check box C at the top of Part I even if the summary totals include transactions described in the text for box A or B. For long-term transactions, check box F at the top of Part II even if the summary totals include transactions described in the text for box D or E. Enter “Available upon request” in column (a). Leave columns (b) and (c) blank. Enter “M” in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h).

Don't use a separate row for the totals from each broker. Instead, enter the summary totals from all brokers on a single row of Part I (with box C checked) or Part II (with box F checked).

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TomYoung

I don't understand the lack of Form 1099-B's. What brokerage?

But, why are you asking this "C-Corp" question when the icon next to your name indicates "TurboTax Deluxe", a personal income tax return product? A C-Corp needs to file form 1120 and for that you need "TurboTax Business".

You need the exact same info that you always need when reporting security sales:

A Description of what was sold, the Date of Sale, the Proceeds, the Date of Acquisition, and the Cost Basis, and you need that information for each distinct sale.

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lori5522Author

I am being told that all Brokers do not issue 1099 B on Brokerage accounts held by a C Corp. Second I have both a Personal Tax turbo tax account and a business Turbo Tax account I simply asked the question here because that login was handy at the moment. My question is not concerning a personal tax return it is only concerning the business C Corp filing and what to do with gains inside the c corp brokerage account. Here is a direct statement from the online brokerage account website

Tax forms will be automatically generated in your account to help you with your year-end tax preparations. The forms generated will depend on your account activity and whether you have any IRS-reportable transactions that year. You can find these forms by hovering over My Account and clicking Tax Statements under the Statements & History heading.

C-Corporations, retirement plans, broker-dealer accounts, commercial bank and savings & loan accounts, insurance companies, advisory services, charitable organization accounts and institutional accounts are tax-exempt and will not receive tax forms. However, S-Corporations may receive tax forms and C-Corporations can be subject to 1099-MISC reporting and/or a Widely Held Fixed Investment Trust (WHFIT) statement.

Scottrade recommends referring to the monthly statements to gather any needed information for preparing your taxes. At your request, Scottrade can provide you with a year-end summary statement that simulates a 1099, but the information is not sent to the IRS.

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SweetieJean

Since when is a C Corp tax exempt?

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SweetieJean

<a rel="nofollow" target="_blank" href="https://www.scottrade.com/knowledge-center/help-how-to/client-website/tax-information/tax-form-generation.html">https://www.scottrade.com/knowledge-center/help-how-to/client-website/tax-information/tax-form-generation.html</a>

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lori5522Author

I was pretty sure this would be a waist of time I would either get people who just ask more questions or people that had know idea what I was talking about and I was right on both accounts. Why do people respond if they don't know the answer.

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SweetieJean

You are posting on a user discussion forum. We learn from each other, This is not TT Support.

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TaxGuyBillAnswer

You can probably put the summary (combined totals of Basis and Sale price) onto Form 8949.

See "Special provision for certain corporations, partnerships, securities dealers, and other qualified entities." on page 3 of the instructions for Form 8949.

https://www.irs.gov/pub/irs-pdf/i8949.pdf#page=3

This special provision applies to certain corporations, partnerships, securities dealers, and nonprofit organizations. Individual taxpayers aren't eligible except in rare circumstances.

You may enter summary totals instead of reporting the details of each transaction on a separate row of Part I or II or on attached statements if:

You file Form 1120S, 1065, or 1065-B or are a taxpayer exempt from receiving Form 1099-B, such as a corporation or exempt organization, under Regulations section 1.6045-1(c)(3)(i)(B), and
You must report more than five transactions for that Part.

If this provision applies to you, enter the summary totals on line 1. For short-term transactions, check box C at the top of Part I even if the summary totals include transactions described in the text for box A or B. For long-term transactions, check box F at the top of Part II even if the summary totals include transactions described in the text for box D or E. Enter “Available upon request” in column (a). Leave columns (b) and (c) blank. Enter “M” in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h).

Don't use a separate row for the totals from each broker. Instead, enter the summary totals from all brokers on a single row of Part I (with box C checked) or Part II (with box F checked).

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TaxGuyBill

So to clarify, if you don't have more than 5 transactions for that particular part (Short vs Long), you should enter them each individually. You also have the option to put the summary in and attach the details, but with 5 or less transactions, it would be easier to enter all of the details directly on the 8949.