Tag Archives: Form 8949

New Tax Form 8949 Update Box “A, B, and C” Explained

Posted on March 7, 2012 by | Comments Off on New Tax Form 8949 Update Box “A, B, and C” Explained

Early this 2011 filing tax season we posted a rather long, eye glazing, article about the new tax Form 8949. As we have delved deeper into tax season we wanted to update an important fact regarding this tax form.

Form 8949 has a check box at the top of “A, B or C.”  Here are a few pointers to help make this form easier:

  • Box A, relates only to basis reported on your 1099’s and  should be marked for most, if not all short-term capital gains basis, as the government was notified of the basis on this information.
  • Box B, relates to basis not reported to the IRS and captured from our systems and  should be marked on a totally new form generated for long-term capital gains as we/JK Financial have kept track of the basis, but this information was not reported directly to the IRS. (Client Turbo Tax users: Carefully check “A cost basis was provided on my statement” and then select “This cost basis was not reported to the IRS” and you should be in good shape)
  • Box C will most likely have no activity or associated transactions.

The key information item to remember is any basis reported on your 1099’s from our vendor will be associated with Box A and all other basis reported directly from our JK Financial systems will be reconciled on Box B.

Again, we are not CPA’s and are just now beginning to see the respective tax software issues, but feel if you keep this “A, B, C” issue in mind, it will be helpful in your tax filing and reviews.

Have a Great Day!

JK

214-706-4300

www.jkfinancialinc.com

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Be Easy on Your CPA this Year and Expect to Pay a Little More, Meet Form 8949

Posted on February 6, 2012 by | Comments Off on Be Easy on Your CPA this Year and Expect to Pay a Little More, Meet Form 8949

As most of you know we have been warning for over a year now, (2011 Rockwell and 2012 Rockwell Part 2) of government changes due to new cost basis reporting requirements. While we agree with the overdue changes which in the long run, will be easier, the gravitation from non-reporting of basis, to full reporting of basis will be rocky at best. Given these facts we fully expect personal tax returns to be slightly more complicated and time-consuming this year, therefore more costly as well.

The Culprit: From 8949

Think of this new form as a catch-all for your long-term and short-term gains with a built-in column for errors. This new form, while simplifying other schedules on your return will be more time-consuming, may surprise you at first glance, and will throw all of us out of our tax comfort zone this filing season.

On a positive note, think of it as one step back to take two steps forward. In the coming years, it will get easier and we will all get more accustom synchronizing the data. (We attempt to give our realized gains and losses data in a form that is easy to transfer into tax return data, however we doubt the various outside reporting vendors will have such concerns at this time, they are still focused on capturing the data.)

Don’t Hurry to FILE your Return, But Do Rush to Get Your Information to Your Professional as Soon As Possible!

While we have strongly suggested those early filer’s wait until late March or early April to have their information electronically sent to the IRS, we do suggest you get your tax information to your professional in an extra timely manner. No one wants a tired tax professional doing their taxes !

As you know, we are not tax professionals, however we interface with many on an almost daily basis, especially during the final leg of filing season. If we all try to make each other’s lives easier, maybe this From 8949 will turn out to be a mole hill rather than a mountain!

Have a Great Day!

JK

214-706-4300

www.jkfinancialinc.com

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When to File Your Personal Taxes? We Recommend You Wait until Late March or Early April

Posted on February 1, 2012 by | Comments Off on When to File Your Personal Taxes? We Recommend You Wait until Late March or Early April

As the tax forms flow to our mail and email boxes, we thought it was a good time to give you our gentle reminder NOT to file your taxes before late March or early April, especially given our “Rockwell Somebody’s Watching You” year.

Corrected 1099’s are a regular part of lives this day and age due to the complexities of investment products. Remember, as clients, we may have investments in stocks, mutual funds, bonds, as well as commodities, foreign stocks and bonds, and partnerships, which generate a K-1.  Many of these investments have accounting adjustments late into the tax season, resulting in a domino effect on 1099’s and other reporting instruments.

In addition to more complex investment statements, we also have our first Rockwell year, in which the government has begun tracking and reporting gains and losses. We will introduce you to a new friend, Form 8949 soon, but needless to say there are more moving parts this year to go along with our continued growth in complex investment products.

We continue to advise we all take a deep breath, stay patient, and keep our income tax lives off-line, until very late March, or early April.

Have a Great Day!

JK

214-706-4300

www.jkfinancialinc.com.

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