"non reportable" stock trade?

Question

I had two stocks (once listed on the NYSE) that pretty much became worthless in 2009, so I called my broker and he sold them on the OTC, commision-free for a price of zero.

I'm looking at the tax document they sent me, and these 2 stocks are not listed on the 1099-B. However, in the supplemental report, the stocks are listed in a table titled "non reportable".

Does this mean I can't report these stock sales in my taxes? Or, if I do report them, won't it raise a flag to the IRS, since I'm reporting sales that are not listed on my 1099-B?

Alan · Accepted Answer

As there was no gross income from the sale, the 1099-B would not have any sale proceeds to report. You still report the sale on Schedule D. Your sales proceeds are zero and then you enter your cost basis to arrive at the loss.

Seth · Answer

No, it means the broker doesn't have to report them, because therewere no proceeds payable to you.The total income from sales you're reporting matches the 1099-B,doesn't it?Seth

Stan K · Answer

It's probably non-reportable because you received nothing; therefore, there is no possibility of taxable income, which is all the IRS cares about.

Since you have documentation of the sale, should the IRS "adjust" your income (if it happens, it'll probably be in a year or two) based on a capital loss transaction they claim never happened, just show the proof you have that it did occur

"non reportable" stock trade?

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