You sold a few stocks, moved money out of a brokerage account or finally cashed in an investment you have held for years. Now a tax document has arrived with pages of numbers and unfamiliar labels.

Take a breath. You don’t need to calculate every transaction yourself. You do need the right records, especially when an account has moved between companies or the purchase happened a long time ago.

This guide focuses on investments held in an ordinary taxable brokerage account. Sales inside retirement accounts have different rules, so tell us what type of account you used.

The amount you received isn’t automatically your profit

A sale usually has two important sides: what you received and your adjusted basis. Basis often starts with what you paid, although adjustments and special rules can change it. The difference generally determines a capital gain or loss. IRS capital gains basics

For a simple example, suppose you bought shares for $2,000 and sold them for $2,600. With no fees or other adjustments, the gain is $600. The $2,600 sale proceeds aren’t the same as a $2,600 profit.

That is why the purchase information matters. Reporting only the sale amount can paint the wrong picture of what you actually earned.

Look for the complete brokerage tax statement

Brokers generally report stock sales on Form 1099-B. Your company may include it in a larger combined tax statement with other forms and transaction details. About Form 1099-B

Download the complete tax document from the brokerage’s tax-document section. A screenshot of your account balance or a trading activity summary is useful context, but it may leave out information needed for the return.

If you have two brokerage accounts, check both. Also look for a corrected statement before filing. If a correction arrives afterward, send it to your preparer for review.

Flag missing purchase information

If you see “basis not reported,” an empty purchase date or a number that looks wrong, don’t fill in an estimate just to finish the paperwork.

Look for purchase confirmations, earlier account statements and records from a previous broker. Tell us if the investment was a gift, an inheritance or came through your employer; those facts can change how the basis is determined. IRS basis guidance

You can simply say, “This account moved, and I don’t think all the history came with it.” That is a useful starting point. We can identify which records would help resolve the gap.

The dates matter too

For most ordinary stock sales, holding an investment for more than one year generally produces a long-term gain or loss. One year or less is generally short-term. Different federal tax treatment can apply, so bring the purchase and sale dates along with the amounts. IRS holding-period rules

You don’t need to label every trade in advance. The documents help us classify the transactions and review the return as a whole.

Include dividends and other account income

A stock sale is only part of the paperwork. Form 1099-DIV reports dividends, which can be classified as ordinary or qualified for federal tax purposes. If your brokerage includes that form in its combined statement, send those pages too. IRS dividend guidance

An account with no sales may still have reportable investment income. Check its tax-document section even if you mostly left the investments alone.

Your quick gathering checklist

  • Complete tax statements from every brokerage account.
  • Purchase history when basis or dates are missing.
  • Information about inherited, gifted or employer-provided shares.
  • Last year’s return, especially if another preparer handled it.
  • Any corrected forms and a note about account transfers.

Use our secure Client Portal to share documents. If the statement feels overwhelming, contact us first. We help Buffalo and Western New York clients turn unfamiliar paperwork into a clear next step.

You don’t have to figure this out alone

You don’t have to calculate stock-sale gains, losses or deductions on your own. At Ziggy’s Tax Advantage, we handle those calculations and carefully review the credits and deductions you qualify for. We help you claim every dollar you’re entitled to, without the stress of sorting through the numbers yourself.