Tax Form 1099-B Date Acquired Various

The tax act supports the entry “VARIOUS” for the date acquired on Form 1099-B. However, if you have a long-term relationship with a company, it would be appropriate to use the phrase “SHORT-TERM” instead of “VARIOUS.” Here is what you need to know.

If a taxpayer purchases a taxable item and rents or leases it for personal use, the city must collect sales tax on the rental or lease charges. The taxpayer must include in the receipts the amount of the taxable sales that exceed the rental or lease charge. The taxable item may be a taxable service or an expense. The amount of receipts is the total amount of the taxable sale, including any credits given to the purchaser.

The TaxAct supports an entry of “VARIED” as the date acquired on Form 1099B if the taxpayer purchased the property on an ordinary basis. The tax-reporting requirement also applies to substitute statements and security transactions that are subject to the noncontingent bond method. If this scenario applies, the taxpayer must enter “VARIOUS” in column (f) of Form 8949 as the date acquired on Form 1099-B.

The IRS requires an entry of “SHORT-TERM”

If you sell securities through a broker or participate in a formal bartering network, you may receive Form 1099-B in January. These documents provide details about the property and securities you bought and sold. In addition to this, you may receive the form if you receive an “A” from a broker. The information on the 1099-B is critical when filing your taxes.

While the IRS requires that brokerages report stock sales to the IRS beginning in 2008, the 1099-B form is more likely to contain information about covered transactions. These are transactions that occurred before 2008 and therefore were not included in the basis of the tax return. Fortunately, this form does contain separate check boxes for short-term and long-term transactions. The 1099-B form is also used for barter exchange transactions, which occur between individuals who do not have the same currency.

The IRS requires an entry of “LONG-TERM”

Form 8949 is the IRS’s tax form for capital asset sales. Individual taxpayers use Form 8949 with Schedule D, the most common tax return form. In addition to 1099-B reporting, Form 8949 is required for all capital asset sales.

When reporting barter exchanges, the seller must report costs and other bases on Schedule B. This form must be filed annually. If you use a composite form, the IRS will require an entry of “LONG-TERM” in column d. This amount will be reported in column (d) of Form 8949. The cost basis is reported on Schedule D Line 1a if it is a short-term transaction, and if it is long-term, it will be entered on Schedule D Line 8a.