| Yes.
You will receive a form 1099B from the brokerage through which you sold the stock, listing the proceeds. This is reported to the IRS.
You will need to know the basis of the stock. That is the cost to you. If you bought it, it's the price you paid, plus commissions paid at purchase or at time of sale. If it was a gift, it's the basis that the owner had when it was given to you. If you inherited it, it's the fair market value on the date of death of the person who died. The brokerage will not necessarily report the basis to you. You may have to search it out yourself.
You use Schedule D to compute the taxable gain or loss, and carry it to the front of Form 1040 on the appropriate line.
Snipes
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This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post.
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10-22-2004, 11:57 PM
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