Thursday, October 28, 2010

How do I claim to the IRS the net income from stocks?

I have to make an adjustment to my 2006 income taxes. The IRS is billing me for about $6500 which is the sum that I sold some stocks that I traded through Scottrade. However I actually paid about $6000 for them originally. How do I demonstrate the purchase price so that I can pay the appropriate tax on the net income instead of the gross income. Thanks.How do I claim to the IRS the net income from stocks?
file a 1040x



and on the last lines explain your situation.



make sure you have supporting documentation.How do I claim to the IRS the net income from stocks?
Complete a Schedule D.



Don't file the amended return (Form 1040X) until you speak to the IRS.
File a 1040x send it in with the response to the letter that you rec'd. Attach the necessary schedule.



Attach whatever documents you have to show the purchase price.
Fill in a schedule D.
If the IRS is billing you, then you received a form CP2000 because you failed to report the sales on your original tax return. You can fax the correct schedule D to the AUR unit--no need to send a 1040x as they can do the adjustment.



Note, what made you think you didn't have to report the $500 of gain you admit you had?
Or else you may consult a tax expert at website like http://taxfiling.co.in/ .

No comments:

Post a Comment