Tax Reporting: What other statements does IB offer at the end of the year?

For all customers IB provides an Annual Statement and a Dividend Report. 

Your Annual Statement shows trade detail for your account gain and loss on a First In, First Out (FIFO) and a Mark-to-Market (MTM) matching basis or the specific method of tax accounting selected for your account.  Your Dividend Report shows account detail for all dividends, and payments in lieu of dividends, as well as withholding on these amounts.

US customers are also provided with a Gain/Loss Summary Worksheet and a Gain/Loss Worksheet for 1256 Contracts.  See the relevant FAQ for a description of the Gain/Loss Summary Worksheet.

The Gain/Loss Worksheet for 1256 Contracts shows detail on mark-to-market profit and loss for sales of equity options, futures (excluding single stock futures) and future options in your account.

For further explanations of these statements on the IB website, from the Accounts menu select Tax Reporting, and see the US Persons and Entities tab.  Your statements are accessible from our website by logging in to Account Management, and accessing the Tax Forms section of the Report Management menu.

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: Does IB offer a Gain/Loss Worksheet?

Yes.  At calendar year-end, IB provides a Gain/Loss Summary Worksheet showing trade gain and loss detail for all securities (stocks, options, single stock futures and bonds) for the year.   The summary worksheet is available by logging in to Account Management and accessing the Tax Forms section of the Report Management menu. 

Transactions are split into two parts: Short-Term Capital Gains and Losses, and Long-Term Capital Gains and Losses.  All attempts have been made to tie total proceeds shown on this worksheet to your Form 1099-B total proceeds, however discrepancies may exist.  Proceeds are reported net of all commissions.  Gains and losses are calculated using First In, First Out (FIFO), Last In, Last Out (LIFO) or a Maximize Losses (ML) methodology, whichever method has been selected by the user for a particular trade.

We suggest that you review this summary worksheet carefully and verify its contents.  Please consult your tax advisor if you have any questions regarding tax reporting.

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: Where can I access account details associated with my transaction gains and losses?

Detailed information is available on your daily, monthly and annual statements accessed by logging into Account Management.

In Account Management: Click Reports>Activity.  If you click Reports>Activity>Downloads, you have the option to download daily and monthly statements using various application including Captools, Tradelog, GainsKeeper, MS Money, Excel or Quicken to facilitate your gain and loss calculations.

If you have the old Account Management layout: View the Activity Statements section of the Report Management menu. In the Activity Downloads section of Report Management, you have the option to format daily and monthly activity statements using various applications including Captools, Tradelog, GainsKeeper, MS Money, Excel or Quicken to facilitate your gain and loss calculations.

 

If you need assistance downloading your statements, please contact the Customer Service Center.

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 taxpaye

 

Tax Reporting: How Gross Proceeds Reported on 1099-B Relate to Gains or Losses

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: Is there a statement that shows my realized and unrealized profit and loss?

Yes.  This information is available by logging into Account Management and from the Reports tab selecting Activity and then Statements

In the original Account Management layout, from the Report Management menu select the Activity Statements section.

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: What is the difference between realized and unrealized profit and loss?

An unrealized profit or loss (also known as a paper profit or loss) occurs when a security increases or decreases in value above (profit) or below (loss) the price paid for that security.  A realized profit or loss occurs when you sell the security. The difference between the price at which the security was purchased and the price at which the security was sold is the realized profit or loss.

For regulated futures contracts, realized profit and loss is the actual aggregate profit or loss recognized over the course of the year from transactions in commodity futures and currency futures contracts on a mark-to-market basis, and is reported in box 13 of Form 1099-B for noncovered securities.

Refer to IRS Publication 550, Investment Income and Expenses, and Publication 551, Basis of Assets for details on reporting gains and losses, including determining cost basis. Additional information is provided in the instructions to IRS Form 6781 and the Instructions to Schedule D (and Form 8949).  Consult your tax advisor for further guidance.

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: What should I do if I receive an amended Form 1099?

 We often need to amend and re-issue Forms 1099 as additional information becomes available to us.  For example, an amended Form 1099 will be issued to reflect the late announcement by a mutual fund, regulated investment company (RIC) or unit investment trust (UIT) that a dividend distribution has been reclassified.   If we do revise your Form 1099, you will receive an email notification that there has been a change, and you can access the amended form by logging into Account Management and using the Tax Forms section of Report Management.

Consult your tax advisor for further guidance on reporting these amounts.

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: What to do if you believe information on Form 1099 is incorrect

If your name, address, Taxpayer Identification Number or other information on a Form 1099 is inaccurate, send a correction request to Customer Service by logging in to Account Management and selecting Support to open the Mesage Center.  In the New Ticket selection box, use the drop down arrow to select Tax Correction Form and click Create.

If you are using the old Account Management layout, click the Message Center icon in the Customer Service area at the top left of the page. In the New Ticket selection box, use the drop down arrow to select Tax Correction Form and click Create.

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: What to do if your consolidated form 1099 is not posted in the Tax Forms section of Account Management

First, you must determine from which account you are missing your consolidated form 1099.  Retirement account and educational savings account 1099s are sent to you by mail, if applicable. If you are missing a consolidated form 1099, verify that you sold shares of stock during the previous tax year for equities or covered a short postition opened after 2010 or that you bought or sold futures contracts during that same period or that you received an interest (including interest on free cash) or dividend payment in an account. Once you have reviewed your account activity from the previous tax year, and, you have determined that you should have received a 1099 for an account, please contact our customer service department with specific details of transactions, including the name of the security, number of shares/contracts, and the trade date. We will research the issue and will advise you once we have concluded our investigation.

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: I am unable to log in to Account Management. How do I access my forms?

Contact our Customer Service Department, and advise the service agent you are unable to log in to Account Management.  If you have your username, we will verify your account information and customer service will create a temporary password in order for you to gain access.  If you do not have your username, you will be asked to provide additional information to our New Accounts department in order to verify the account.  Please be advised this may require additional processing time to complete the verification process.

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