How do I determine my gain or loss on the proceeds reported on Form 1099-B from a short sale entered into last year if I have not yet bought the stock to deliver back to my broker?
In general, you cannot determine your gain or loss until you purchase the stock that you are going to deliver to close the short sale. You still need to report the gross proceeds on Schedule D so that the total of lines 3 and 10, column (d), reconciles with all of your Forms 1099-B. Also, in columns b and c write “short sale.” In column f, write “see attached statement.” In the statement, explain the details of the short sale and that it is not closed. Include your name as it appears on your return and your social security number.
Related Questions
- Will my capital gain/loss reported on the 2010 Average Cost Accounting Statement be the same on my state and local personal income tax return as it is on my federal personal income tax return?
- How do I determine my gain or loss on the proceeds reported on Form 1099-B from a short sale entered into last year if I have not yet bought the stock to deliver back to my broker?
- How will a short sale be reported to the homeowner’s credit?
