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Form 1099-B Worksheet: Capital Asset Sales may not contain a date after 12/31/2021

Forum|Forum|4 years ago
March 22, 2022
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I keep receiving a message to check an entry for a capital asset sale which contains a date after 12/31/2021. The sale date is in January 2022, but a comment on the document from my broker says:

"The fund company has determined that this dividend payment which you received in 2022 is reportable as taxable income for 2021."

How can I get past this error message?

Best answer by JohnB5677

If you actually sold the stock near the end of the year the issue may be with the trade date vs the settlement date. The trade date is the date that the transaction was agreed to, and is often a few days before the settlement date which concludes the transfer between accounts.

The sale date for tax purposes is when the trade is made, rather than on its settlement date when the stock is delivered and payment is made.

If you did make the trade at the end of the year you should simply change the date to 12/31.

JohnB5677

Please clarify what you are trying to post. Is it a stock sale on a 1099-B, or a Dividend pay out on a 1099-DIV?

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J

jpslaterAuthor

It's a stock sale on a 1099-B

JohnB5677

If this is a stock sale listed on the 1099-B it should be posted with the sale date listed on the form, and it should be a 2021 date. If the sale was in 2022 it should not be on the 1099-B.

If this was a dividend, it should have a 1099-DIV associated with it that would reflect the 2021 distribution.

Forgive me if I'm missing something.

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B

Bondy_joel

I'm getting the same error with data downloaded from Merrill Lynch. It happened last year, too. I'd hoped that whatever the problem is, it had been resolved. What does one do?

JohnB5677Answer

If you actually sold the stock near the end of the year the issue may be with the trade date vs the settlement date. The trade date is the date that the transaction was agreed to, and is often a few days before the settlement date which concludes the transfer between accounts.

The sale date for tax purposes is when the trade is made, rather than on its settlement date when the stock is delivered and payment is made.

If you did make the trade at the end of the year you should simply change the date to 12/31.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

B

Bondy_joel

Thanks for the prompt reply! The transactions at issue have the same date sold and date acquired. In one transaction they say both are 1/22/2022. Another has them as 1/25/2022. The cost basis and sale price are the same, so they're net zero transactions.