Contributor: Jodi Baskin

2011 proved to be a year of change in the world of trading stocks. With the changes implemented under the Economic Stabilization Act of 2008, beginning in 2011, firms are required to capture the costs associated with purchasing and liquidating stocks and to report those costs to the Internal Revenue Service on behalf of their investors. The 2011 tax reporting is now in full swing. This year and moving forward, the time for brokers to furnish statements on form 1099-B to their investors has been extended from January 31 to February 15. This presents quite a change to investors who in the past have seen only rolled up gross proceeds reported. Plus, the 1099-B has been expanded to include the cost basis of stock sold or exchanged during the year. Schedule D has also changed, and the addition of Form 8949 has been included. Form 8949 lists all capital gain and loss transactions, and then subtotals from this form are carried over to Schedule D where investors still report their gains and losses in aggregate.... read more