Question

which of the following sales can be reported directly on schedule D?

- zen received a form 1099B reporting stock sale proceeds of $2157 and basis of $2000

- Nema received a form 1099B reporting stock sale proceeds of $4762 with the bases of $3876 this sale requires an adjustment to the bases.

- Adesa received a form 1099B reporting stock sale proceeds of $198 and no basis.

Answer 1

Answer:

Correct answer is:

- zen received a form 1099B reporting stock sale proceeds of $2157 and basis of $2000

Explanations:

Covered transactions can be aggregated and reported as single-line entries directly on Schedule D. Broker provides Form 1099-B to IRS for covered transactions.

Covered transactions are those transactions which

• Show acquisition date and basis
• Don’t require any adjustments or codes

As such option 1 is correct and other options 2 and 3 are incorrect.