AARP TAX-AIDE INSTRUCTOR WORKSHOP CAPITAL GAIN OR LOSS Bob Kennedy, CoCo-Central

Instructor Workshop - Capital Gain or Loss Publications Used NTTC Workbook Instructor Workshop - Capital Gain or Loss

Covered and Non-covered Definitions Covered securities Stock purchases starting January 1, 2011 Mutual fund purchases starting January 1, 2012 Less complex debt instrument purchases starting January 1, 2014 More complex debt instrument purchases starting January 1, 2016 Non-covered securities All purchases prior to above dates Security transfers without basis Instructor Workshop - Capital Gain or Loss

Covered and Non-covered IRS Reporting Requirement Sale date X Sales price Acquisition date Basis cost Wash sale disallowed Instructor Workshop - Capital Gain or Loss

Instructor Workshop - Capital Gain or Loss 8949 Codes A – Short-term covered B – Short-term non-covered C – Short-term not on 1099-B D – Long-term covered E – Long-term non-covered F – Long-term not on 1099-B Instructor Workshop - Capital Gain or Loss

Instructor Workshop - Capital Gain or Loss Adjustment Codes B – Basis correction H – Main home sale L – Non-deductible loss other than code W O – Other adjustment T – Short-term/long-term correction W – Wash sale loss disallowed Instructor Workshop - Capital Gain or Loss

1099-B (Code A) Workbook Page 106 Instructor Workshop - Capital Gain or Loss

TaxSlayer Entry Code A – Top Section Instructor Workshop - Capital Gain or Loss

TaxSlayer Entry Code A - Bottom Section Instructor Workshop - Capital Gain or Loss

Instructor Workshop - Capital Gain or Loss Form 8949 Code A Instructor Workshop - Capital Gain or Loss

1099-B (Code E) Workbook Page 107 Instructor Workshop - Capital Gain or Loss

TaxSlayer Entry Code E – Top Section Instructor Workshop - Capital Gain or Loss

TaxSlayer Entry Code E - Bottom Section Instructor Workshop - Capital Gain or Loss

Instructor Workshop - Capital Gain or Loss Form 8949 Code E Instructor Workshop - Capital Gain or Loss

Instructor Workshop - Capital Gain or Loss 8453 IRS only wants detail that supports a code B or E multiple line entry Don’t send entire broker statement Instructor Workshop - Capital Gain or Loss

Instructor Workshop - Capital Gain or Loss THAT’S ALL FOLKS! Questions ----- Comments? Instructor Workshop - Capital Gain or Loss