Cambridge Houses for Sale

Question by luke: How to report short sale stock in schedule D if it’s not closed by the end of 2006?
The 1099-B form from my brokerage firm shows a short sale as a sale proceeds amount and therefore IRS is going to treat it as a gain. But I didn’t buy to cover the short sale of stock.

Best answer:

Answer by Nusha
If you are able to defer the reporting of gain or loss until the year the short sale closes, you will need to attach a statement to your Form 1040, Schedule D explaining the details of your short sale and that it has not closed as of the end of the year.

This will allow you to reconcile your Form 1099-B to your Form 1040, Schedule D and still not recognize the gain or loss from the short sale. Include your name as it appears on the return and your social security number.

Know better? Leave your own answer in the comments!