2009 was my first year of investing and I used Sharebuilder I made 3 trades all short-term capital gains. I just downloaded my 2009 1099-B and there is a gross proceeds line item detailing my 3 trades. It appears I report this on my tax form. HERES MY PROBLEM, the gross proceeds line item show total proceeds less commisions, but the money I put into sharebuilder was already taxed and the money I used to buy the stock is including in the gross proceeds..wouldn't this be a double taxation? I was keeping a seperate spreadsheet and using a cost-basis approaach and only calculating my tax owed on the CAPITAL GAIN....
Please advise as when I become a big-time investor this can really add up if it's true?
GENERIC EXAMPLE:
DEPOSIT $100 Sharebuilder from bank, so its already been taxed.
BUY STOCK TOTAL COST 109.95
SELL STOCK 309.95, 3 mos later, ....hence a $200 profit
GROSS PROCEEDS SHOW $300 as reportable, why? or do I make another adjustment on my tax form for cost basis? I would think $200 is taxed only and taxed at the short term capital gain rate.
Please advise as when I become a big-time investor this can really add up if it's true?
GENERIC EXAMPLE:
DEPOSIT $100 Sharebuilder from bank, so its already been taxed.
BUY STOCK TOTAL COST 109.95
SELL STOCK 309.95, 3 mos later, ....hence a $200 profit
GROSS PROCEEDS SHOW $300 as reportable, why? or do I make another adjustment on my tax form for cost basis? I would think $200 is taxed only and taxed at the short term capital gain rate.
