Tax Reporting: Withholding on IRA Distributions in Connection with Rollover
We are required to apply 20% withholding tax from IRA distributions, unless your IRA rollover is sent directly account to account. Box 4 of the 1099-R reports any withheld taxes. Please note that for any tax deferred account rollover on which taxes have been withheld, the full amount (including the taxes) must be re-deposited into a tax-deferred account within 60 days for the transaction to be income tax free.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: Gross Proceeds and Commissions on Form 1099
The gross proceeds balance is net of commissions.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: Unable to Log into Account Management to get 1099s
Contact our Customer Service Department, and advise the service agent that you are not able to log into the Account Management.
If you have your username, we will ask a series of security questions for identity verification. Once the information has been verified, our customer service department will establish a temporary password to allow you to gain access.
If you do not have your username, we will require you to send additional information to our new accounts department in order to verify your identity. Please be advised that in this case additional time may be required to complete the verification process.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: Form 1042-S Availability
The form will be available to you by March 15th and is located in the Tax Forms section of Account Management.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Where Tax Withheld is Sent
Interactive Brokers remits the tax withheld to the U.S. Treasury.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Availability of K-1s from Publicly Traded Partnerships (PTP) and Royalty Trusts
K-1s are prepared and distributed by the individual partnership or trust. IB does not have access to these documents. Most PTPs and Royalty Tusts have investor contact phone lines through which you can obtain this information; additionally many have investor websites from which you can download your information.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Tax Consequences of a Wash Sale
Losses from wash sales are not deductible when they occur. Any disallowed loss should be added to the cost basis of the newly acquired security. The disallowed loss will be reflected in the calculation of gain or loss when these shares are sold. If you think you may have entered a wash sale, please consult your tax professional for more information.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Long-Term Capital Gains
Long-term capital gains are capital gains earned on the sale of securities held for more than 1 year. The date a security is acquired is the trade date +1 and the date of sale is the trade date. Net long-term capital gains are eligible to be taxed at favorable tax rates.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Short-term Capital Gains
Short-term capital gains are capital gains earned on the sale of securities held for up to 1 year. The date a security is acquired is the trade date +1 and the date of sale is the trade date.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
