The IRS is requiring more reporting when you sell your investments.\u00a0 Specifically, they require you to report the investment cost, cost basis in investment terminology,\u00a0and the gain\/loss from the investment sale.\u00a0 If you purchase 100 shares of a stock and sell\u00a0100 shares of the\u00a0stock, your cost basis is easy to calculate.\u00a0 Things get more difficult when you purchase shares in different lots.\u00a0 For example, you purchase 100 shares in 2011, 50 shares in 2012, 200 shares in 2013 and sell 160 shares in 2014.<\/p>\n
What is your cost basis in the above\u00a0scenario?\u00a0 This is not an easy\u00a0calculation\u00a0to do.\u00a0 To make things even more difficult, you have to report both your short term gains and long term gains to the IRS\u00a0separately.\u00a0 Fortunately, EquityStat\u00a0makes this easy.\u00a0 EquityStat calculates your cost basis for each investment and can also generate IRS Form 8949 which is a report that shows your gain\/loss on each\u00a0investment sold.\u00a0 Your tax preparer\u00a0can then use Form 8949 to create\u00a0the IRS\u00a0Schedule D form.<\/p>\n
To Generate Form 8949, click the Tools menu at the top of the portfolio and then click the Generate IRS Form 8949. Choose your tax year and EquityStat will generate the report showing both your short term and long term gain\/loss on each investment you sold during the tax year.<\/p>\n
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Selling Investments and the IRS The IRS is requiring more reporting when you sell your investments.\u00a0 Specifically, they require you to report the investment cost, cost basis in investment terminology,\u00a0and the gain\/loss from the investment sale.\u00a0 If you purchase 100 shares of a stock and sell\u00a0100 shares of the\u00a0stock, your cost basis is easy to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[26,25,17,27,18],"class_list":["post-47","post","type-post","status-publish","format-standard","hentry","category-equitystat-tips","tag-cost-basis","tag-form-8949","tag-irs","tag-schedule-d","tag-taxes"],"yoast_head":"\r\n