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View Full Version : What does everyone think about the 1099 rule?



DFrat
01-05-2011, 05:32 PM
I'm from the US, so I do not know if their applies to Canada (of if you guys have to do it already), but the IRS is getting more and more annoying. My trading account just sent me a notification that we will have to file individual 1099s for each stock sale we make starting this year. Going to be a pain in the ass for people who do not do the buy-and-hold Ponzi-scheme method of trading all the time.

Any thoughts?

theplantguy
01-05-2011, 05:42 PM
The 1099 rule is for businesses, not individuals

JohnRav
01-05-2011, 05:44 PM
I'm from the US, so I do not know if their applies to Canada (of if you guys have to do it already), but the IRS is getting more and more annoying. My trading account just sent me a notification that we will have to file individual 1099s for each stock sale we make starting this year. Going to be a pain in the ass for people who do not do the buy-and-hold Ponzi-scheme method of trading all the time.

Any thoughts?

That same broker will likely supply you with these 1099's, so you do not stop trading (paying a commisssion on each trade)

If that is your only concern on this, you are ahead of most. (and there is a 15-20 page thread on this topic already - somewhere around here)

DFrat
01-05-2011, 07:35 PM
The 1099 rule is for businesses, not individuals

I've heard about the 1099 rule for businesses making transactions over $600 or so, but this sounds like it's just for stock trading in general. Here's the email:

"January 05, 2011

Effective January 1, 2011: Schwab is required to report gain/loss details to
you and the IRS on form 1099 when you sell equities, such as stocks. The Cost Basis Method used to calculate your gain/loss information cannot be changed after your trade settles. Make sure that you have the correct cost basis method assigned to your trade by visiting the order status page:
https://client.schwab.com/Trade/OrderStatus/ViewOrderStatus.aspx?"

Sounds like big gov't needs to expand the IRS and "create jobs." We'll see who comes out with software to handle the problem...

theplantguy
01-05-2011, 07:40 PM
My accountant told me that the broker now gets to do some of the accountants work by figuring the cost basis for each trade. Regardless of the new 1099 reporting guide line, I have to pay the same (outrageous) taxes.

DFrat
01-05-2011, 08:06 PM
My accountant told me that the broker now gets to do some of the accountants work by figuring the cost basis for each trade. Regardless of the new 1099 reporting guide line, I have to pay the same (outrageous) taxes.

By "outrageous", do you mean the 20% capital gains, or something on top of that robbery?

theplantguy
01-05-2011, 08:10 PM
All mine is short term...........taxed as personal income...................

OddVaark
01-05-2011, 11:17 PM
I'm from the US, so I do not know if their applies to Canada (of if you guys have to do it already), but the IRS is getting more and more annoying. My trading account just sent me a notification that we will have to file individual 1099s for each stock sale we make starting this year. Going to be a pain in the ass for people who do not do the buy-and-hold Ponzi-scheme method of trading all the time.

Any thoughts?

I'm leaning towards "this can't be a good thing", but it may turn out to be to the "little guy's" benefit. I'm currently required to submit an organized line by line accounting of EVERY stock transaction along with my Schedule B. It can't be done electronically at the moment which means I have to file ON PAPER through the mails ... and the returns go out in a BOX instead of an envelop.
I'm hoping that these mandatory 1099's are as electronically friendly as the other 1099 forms and reduce my end of the paper work. My next "magical wish" will be for a uniform FORM K-1 so I don't have to spend an hour on each with a magnifying glass trying to find out where the tax information I need is on those annoyingly complex Limited Partnership forms.