What to Do With 1099-CAP
Form 1099-CAP, Changes in Corporate Control and Capital Structure, is a lesser-known IRS form. You may have received one if you are a shareholder in a corporation which had a change in control or a large-scale change in their capital structures and you received cash, stock, or another property as a result. This income on this form is treated as taxable income as an investment or capital gain. You can add this to your eFile account to generate the needed forms and add it to your taxable income.
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Get your form added by following the steps below.
2. Where Do I Enter Data?
eFile will guide you through entering all types of income. You will be prompted to enter your capital gain or investment income under the Investment section. Answer "Yes" when asked if you sold any stocks, bonds, mutual funds or other investments. Select that you did not receive a 1099-B and continue. This will allow eFile to report the investment income on Form 8949 and Schedule D as needed.
3. How to Manually Add Data
To manually add your form, navigate to Federal Taxes > Review > I'd like to see the forms I've filled out or search for a form and enter "1099-B" or "8949." Select that you did not receive a 1099-B and continue. You can then fill out the details based on the form you received.
4. Box Descriptions
There are a few boxes on the form, but below are the most common that will be filled in.
1: Date of sale or exchange
2: Aggregate amount received
3: Number of shares exchanged.
5. How to Add, Delete a Form or Page
This form is separate from Form 1099-B, but it is treated similarly as one for tax purposes. Add this form under the investments or 1099-B section in order to let eFile generate it on your final tax return copy.
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