brokered CDs on a 1099

Even if they don't have to be reported, why not just do it? It's not a big deal and it'll prevent notices.

(Just because something doesn't have to be reported (and I'm not saying that's the case here) doesn't stop the IRS computers from trying to match up 1099-Bs and sending nastygrams when not enough proceeds are reported).

Yes. You purchased a security (capital asset) and later sold it. You also said it was a brokered CD. So... you may or may not have paid face value. Additionally, the only data that the IRS has is your sale proceeds. They do not have your cost basis.

Yes. You purchased a security (capital asset) and later sold it. You also said it was a brokered CD. So... you may or may not have paid face value. Additionally, the only data that the IRS has is your sale proceeds. They do not have your cost basis.

=========Not so fast. Typically, a CD is merely a certified, quantized deposit of money which pays INTEREST. I don't see how that begets capital gain treatment, let alone what gain or loss would result as the original deposit is precisely returned and the excess is interest, not a gain.

Are you certain that what you invested in was a CD, not a bond issue? Bonds act in the manner you describe. Certificates of deposit don't.

They were original issue CDs. Paid par, matured for par. No gain or loss.

I included on form 8949.

But I tells ya, some day the very few of us that pay income tax are just going to have to say "enough. no more." Jeeze, the return looks like a book, mostly filled with zeros and calculations that run around in circles and yield no result.

Brokered CDs are typically sold at FMV. The FMV goes up and down as interest rates go down and up. Sell it on the open market at a gain or a loss and you have a capital gain or loss. The gain on the sale is not interest and a loss on the sale is not an early withdrawal penalty.

If you buy a CD at face value and redeem it at maturity (typically from a bank), the point is moot. One would only report it if one received a 1099.