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1099-B - Lists proceeds from callable CD's??

Hi, I had a 2 callable CD's I bought at Schwab. Both were called this year. I've had them for over a year. On my 1099-B, they reported it as a brokerage sale with the amount that was called. I gave schwab a call, they told me this year they are required to send out callable CD proceeds. Pointed me to my gain loss report, so I know my basis and the dates I purchased them. I've had Cd's called before but never saw the proceeds reported on a 1099B. So, I searched around and can't find anything on this. The cost basis is the same as the proceed amount, they both match so I guess they go on sched D and show a net gain of zero. Any special way to code it? I got Bank of xx 4.1 2012, really makes no sense - TIA -

Reply to
steve-o
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It's quite common for brokered CDs to be reported on a 1099B.

I have some clients whose gross income would be below their filing threshold except for 1099Bs for brokered CDs.

Reply to
Arthur Kamlet

Was there a commission on the buy or sell?

Reply to
removeps-groups

No buy or sell commisions. The Cd's were not purchased on the secondary market. I've been chasing yield in an IRA for years buying callable CD's knowing they'd get called but not knowing I'd run out of Hi yeilding callable Cd's..Seemed like IF one got called I could always find another. Then I decided to do the same thing in '08 in my "personal" shwab account since the spreads were BIG..Shwab reports the interest on the 1099-int portion of the composite. Seems the Schwab rep gave me bad info. The reason I never saw this reporting before is because I never had a C.D. CALLED in a personal brokerage account. So the fact that I got these values on my 1099 B and I have to explain it to the IRS seemed odd, scary almost. Now I see it's common. So, thanks to all. Shwab provides their customers with a gain/loss report aht lists the date you purchased the CD and the basis.

Reply to
steve-o

The capital gain is zero, right? Just because you got a 1099-B, you have to report it.

Reply to
removeps-groups

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