tax return - 1099-B

[ER_Hopeful]

doing my tax. I sold some of my target fund (vtthx) in my taxable brokerage acct in 2021 and had a gain of about $15k.

I got two tax forms from Vanguard. One is a 1099-Div which shows the list of funds I own along with their div and cap. gain, this form shows the 15k cap. gain in box 2a.

I also got a separate 1099-B that lists the transactions for the 15k gain. It says "Long-term transactions for which basis is not reported to the IRS-- Report on Form 8949, Part II, with Box E checked.
Type of gain or loss (Box 2): Long-term"

Do I need to do anything with that 1099-B?

I'm using the HR Block software.

Thanks,

 

[MichaelB]

I suspect the capital gain reported on the 1099-b is separate from the income reported on the 1099-DIV, and it’s a coincidence the amounts are similar. Both need to be entered in the tax SW.

 

[ER_Hopeful]

I suspect the capital gain reported on the 1099-b is separate from the income reported on the 1099-DIV, and it’s a coincidence the amounts are similar. Both need to be entered in the tax SW.

should have been more clear. The cap gain on both the 1099-Div and 1009-B refer to the same acct and same fund. The 1099-Div shows a one line summary while the 1099-B shows the detail transactions.

 

[N02L84ER]

Usually the 1099-Div reports dividends and Declared Capital Gains, which means the gains are from the fund selling shares. The 1099-B reports the customer sale Capital Gains, which are the gains from the customer sale of shares. As MichaelB indicates, both need to be reported on the tax return. Are the two numbers identical?

 

[MichaelB]

should have been more clear. The cap gain on both the 1099-Div and 1009-B refer to the same acct and same fund. The 1099-Div shows a one line summary while the 1099-B shows the detail transactions.

Usually the 1099-Div reports dividends and Declared Capital Gains, which means the gains are from the fund selling shares. The 1099-B reports the customer sale Capital Gains, which are the gains from the customer sale of shares. As MichaelB indicates, both need to be reported on the tax return. Are the two numbers identical?

Right. All the income reported on the 1099-B and 1099-DIV can be from the same mutual fund, but they are different types of income. The capital gain reported in the 1099-DIV is capital gains generated by fund transactions and is being distributed to you. The gain on the 1099-B is the gain resulting from your transaction.

 

[ER_Hopeful]

Right. All the income reported on the 1099-B and 1099-DIV can be from the same mutual fund, but they are different types of income. The capital gain reported in the 1099-DIV is capital gains generated by fund transactions and is being distributed to you. The gain on the 1099-B is the gain resulting from your transaction.

You're right. I looked back at 2020, 1099-div shows only 700 cap gain while 1099-b shows 5k for the same fund. It just so happened for 2021 the fund itself had a significant cap gain.


Had I known they were going to stick me with a cap gain like that at year end, I wouldn't have sold the shares. Oh well... time to pay up

 

[MichaelB]

You're right. I looked back at 2020, 1099-div shows only 700 cap gain while 1099-b shows 5k for the same fund. It just so happened for 2021 the fund itself had a significant cap gain.


Had I known they were going to stick me with a cap gain like that at year end, I wouldn't have sold the shares. Oh well... time to pay up

Don’t be too hard on yourself. Vanguard had unexpectedly large gap gains distributions this past year in their Target Date funds and just about everyone holding them in taxable accounts were caught with unexpected gains. Here’s one thread on it https://www.early-retirement.org/fo...unds-large-cap-gains-distribution-112726.html