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.
Tax Reporting: Foreign Tax Paid as a Foreign Tax Credit or as a Deduction
Treatment of foreign tax withheld as a foreign tax credit or as a deduction depends upon the tax situation of each shareholder. IRS Publication 514, “Foreign Tax Credit for Individuals” and the instructions for Schedule A “Itemized Deductions” and Form 1116 “Foreign Tax Credit” provide more specific guidance. We also recommend that you consult IRS Publication 514, “Foreign Tax Credit for Individuals”, for additional information on this subject. Please consult your tax professional for any additional information and determination of the appropriate treatment for your tax situation.
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: Return of Capital (ROC) in an Account
IB will report ROC distributions to shareholders as nontaxable distributions on Form 1099-DIV, "Dividends and Distributions". Please note that this information is often not available until after the initial 1099 forms are made available to you. Once the information is available IB will issue corrected 1099s to you. We suggest that you check your tax forms in Account Management – Tax Forms prior to filing your return to verify that you have used the most current 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: U.S. Government Interest on Form 1099-INT
U.S. Government interest is reported separately for state tax reporting purposes.
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: If You Filed Taxes but Did Not Include Information Reported on Form 1099
You will have to file an amended tax return that includes the applicable information as reported on Form 1099. As the IRS verifies the information on your tax returns with the 1099s received from banks, brokers and other sources, you may receive a notice from the IRS indicating that your return was filed without the omitted information. Consult your tax or legal advisor for further information.
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 2439
Form 2439, "Notice to Shareholder of Undistributed Long–Term Capital Gains", reports to owners of Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) undistributed capital gains allocable to them. A separate form 2439 will be issued for each investment. These forms will be issued 90 days following the fiscal year end of the RIC or REIT. Note that some RICs and REITs do not have calendar fiscal years, it is best to consult the website of the investment or your tax advisor for specific guidance in this area.
