A customer has made multiple purchases of a stock at different dates. If the customer sells a portion of the position, the custo

Question

qwelly [4]

2 years ago

15

A customer has made multiple purchases of a stock at different dates. If the customer sells a portion of the position, the custo

mers cost basis is reported by the broker-dealer on_________.A.Form K-1B.Form 1099-AC.Form 1099-BD.Form 1040

Social Studies

1 answer:

Assoli18 [71] · Answer 1 · 2022-05-26T22:49:22+03:00

Answer: (C) Form 1099-B

Explanation:

The form 1099-B is defined as the IRS (Internal revenue service) tax form which is mainly issued by the barter exchange and the brokers. This type of form helps us to deal with the capital profit taxes. This is also known as the Federal form which is related to the tax.

According to the question, the broker-dealer basically report the customer cost in the form 1099-B. It helps us to calculate the total sum of the individual gain and loss which is taxable.

Therefore, Option (C) is correct.