If you use two different brokerages; does IRS know to combine the two to calculate how much you owe in capital gains taxes?
- 4 weeks agoFavorite Answer
The IRS receives the same sales and dividend information from the broker dealer that you get. You will enter the information on your tax return and calculate what you owe. A computer matches up your reported income with the information that the IRS has.
- BLv 74 weeks ago
each brokerage reports its activity to the IRS
- EvaLv 74 weeks ago
It's your responsibility to report the transactions properly. The brokerages send a copy of the 1099INT, 1099DIV, and 1099B to the IRS, but it's not their responsibility to calculate the taxes for you.
- NALv 74 weeks ago
As the first poster indicated, each brokerage house issues 1099-Bs and the IRS doesn't care that there are two, three, etc.
On some or all of the 1099-Bs, there *might* be information about the date acquired and your cost basis. This was added a few years ago. If that information is present, theoretically, the IRS could correctly calculate the amount of capital gains and the correct tax rate (short or long). However, I wouldn't count on it.