I received a 1099 from Wells Fargo Advantage Funds because we cashed out in 2006. 1099-DIV says that it's not applicable. I'm going to file a form 4797 for the 1099-B. Do I have to file a 1040 because I'd rather file a 1040A? Thanks!
>
>
>
>
>
>
>
>
>
Wrong form. You don't file a 4797 for the sale of an investment. You file Schedule D and a full 1040. Ira Smilovitz
OK, I'm not a tax expert, but...
Why are you filing a Form 4797? Were the mutual funds connected in some way with a business? Assuming that this is a personal investment, then the form you would need to fill out would be Schedule D to go with your full 1040 form. You can forget about the 1040A. You will need to compute your tax basis in the Advantage Funds that you sold, in order to figure out the capital gains. The basis is generally all of the money you spent buying the funds in the first place. Note that this includes any dividends that were paid to you and reinvested
-- including automatic reinvestment.
The 4797 is used for the sale of business property. It appears that you have the sale of securities (mutual funds). That gets reported on Schedule D of Form 1040.
You would use schedule D not 4797 and yes you would have a 1040
Why would you do a 4797 for this??
It'll be a sale of a capital asset, reported on Sched D.
Yes, you have to file a 1040. There's no advantage to filing a 1040A in any event, by the way. Sure, it has fewer lines than a 1040, but one can simply skip the inapplicable lines on 1040.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
The 4797 is used for the sale of business property. It appears that you have the sale of securities (mutual funds). That gets reported on Schedule D of Form 1040.
you would use schedule D not 4797 and yes you would have a
1040Have something to add? Share your thoughts — no account required.
Ask the community — no account required