1099-B (Cash Certificate)

Forum|Forum|2 years ago
January 30, 2024
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I have a cash account with my broker that I was using as a Savings account. I withdrew cash on two separate occasions. I received a 1099-B because, according to my broker, the cash was held in a cash ultra-short liquid certificate. The reported loss/gains are $0 so my broker is telling me that I should not see any tax consequences from the movement of that cash. I'm just not certain how I should proceed. TurboTax wants to know about the sale of investments in order to properly complete the 8949 form and I don't know what to say here because I didn't sell anything.

Best answer by MonikaK1

Check with the brokerage if you are uncertain as to exactly what the proceeds on your Form 1099-B represent. If any part represented interest, dividends, or proceeds from the sale of an investment, there could be taxable income involved.

If they are strictly a return of after-tax cash held by the firm, you could report the Form 1099-B and enter the same amount of the proceeds as your basis in the distribution.

See this TurboTax tips article for more information about proceeds from Forms 1099-B.

Bsch4477

Employee

The 1099-B should have an amount under proceeds.

TaxConfusedin23Author

Hi, thank you for responding.

There is an amount under proceeds, which are the amounts of my cash withdrawals from this account. The money in the account is not the result of anything I sold. The brokerage firm opened the account as way for me to use it like an emergency fund/long term savings account. I deposited cash into the account and I withdrew money when I needed it. To me this is nothing more than a savings account.

I can't even simulate adding the data from the 1099-B form because I get stuck on any part where I'm asked about how I obtained this money from the sale of something (e.g., mutual funds, RSU, property, etc..).

MonikaK1Answer

If they are strictly a return of after-tax cash held by the firm, you could report the Form 1099-B and enter the same amount of the proceeds as your basis in the distribution.

See this TurboTax tips article for more information about proceeds from Forms 1099-B.

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