1099 - FAQs

FAQ | Sample 1099 | 1099 Letter

1. When should I expect to receive my form 1099?
The form will be mailed to you via the U.S. Mail no later than January 31, 2012. Forms are NOT available via electronic mail. The 1099 is sent to the address of record, therefore, if your address changed please contact the New Accounts department to update your address and request a duplicate 1099.


2. What if I have not received my 1099 by February 10, 2012?
Please contact Customer Service or call them at 888.274.2916, to confirm your address and arrange for a duplicate copy. Please be aware if you do not have a social security number or are otherwise considered non-taxable in the United States, you will not be receiving a Form 1099.


3. Why did I receive multiple Form 1099s?
There are a couple of reasons for receiving multiple 1099s. One reason is that you have more than one account at PFGBEST. Another reason is that your account number changed during the year. If this is the case, your total profit or loss is the aggregate of line item 11.


4. Does my Form 1099 deduct commissions and fees?
All commission, brokerage, clearing, transaction and NFA fees are accounted for in the form 1099. Non-transaction based fees are not reflected in the form 1099.


5. What if I ended the year 2010 with an open position(s)?
If you had open positions on the last trading day in December 2010, the market value of these positions on December 31, 2010 would have been reflected on line item 9 of your 2010 Form 1099-B. In the year 2011,after the position is offset, the realized gain or loss is included in Line item 8. For example, if you had open trade equity ("OTE") of negative $500 on December 31, 2010, this negative $500 would appear on line 9 (on the 2010 1099-B). The Form 1099-B for 2011 will reflect $500.00 credit on Line 9. This is simply a "wash" of OTE from one year to the next.


6. What if I end the year 2011 with an open position(s)?
The value of these positions on December 31, 2011 will be reflected on line item 10 on the 2011 Form 1099. Please remember brackets around the number indicates a loss or negative number.


7. What is unrealized profit or loss?
Profits or losses are realized when a futures position is closed. Profits and losses are unrealized when a futures or futures option position is open at the end of the year. The amount of unrealized futures profit or loss is the difference between the initial purchase or sale price and the settlement value of the position on the last trading day of the year. The unrealized option profit or loss is the net option valuation on the last trading day of the year.


8. How is the premium paid/recieved for options reflect in my 1099-B?
The option premium paid or received from an option is included in line 8 - Profit (Loss) Realized of Futures Options. The value of the option at December 31, 2011 is included in line 10 - Total Unrealized P/L Converted to USD on Options.


9. How do I know if I have an unrealized profit or loss?
If you had open positions at the end of 2011, your unrealized profit or loss for those contracts will be shown on Line 10. If you had open positions at the end of 2010, your unrealized profit or loss for those contracts will be shown on Line 9.


10. Why don't Lines 8, 9 and 10 equal Line 11?
The profit or loss on Line 11 equals the 2011 realized profit or loss on Line 8 plus the 2010 unrealized profit or loss on Line 10 minus the 2011 unrealized profit or loss on Line 9. You subtract the amount on Line 9 to avoid double counting of amounts already reflected on your 2011 return.


11. What if I do not agree with the calculation?
Please review all of your monthly statements from 2011 and December 2010 (if you had any open positions in December 2010).

• Line 8 (realized trading gains/losses) will be the total of your "Net Futures P&L" and/or "Net Option Premium" from each monthly statement from January 2011 through December 2011.

• Line 9 (adjustment to unrealized profit/loss from 2010) is the "Futures Trade Open Equity" and/or "Option Market Value" from your December 2010 monthly statement. If the value of your positions was negative in 2010, it will be positive in 2011 as this is simply a wash of open equity from 2010 to 2011. See FAQ #5 above. If you did not have any open positions in December 2010, you will not have Line 9.

• Line 10 (unrealized profit/loss on open positions as of December 31, 2011) is the "Futures Trade Open Equity" and/or the "Options Market Value" as of December 31, 2011. If you did not have any open positions on December 31, 2011, you will not have Line 10.

• Line 11 is the total profit or loss that is reported to the IRS for 2011. Please remember that is this number is in brackets, it is a loss.


12. What if I do not have copies of all of my monthly statements?
Please contact the New Accounts Department at PFGBEST at 1.800.333.5673 or send a request to compliance@pfgbest.com. Please note, there is a minimum charge of $25.00 for reproducing monthly statements.


13. What does PFGBEST report to the IRS?
Line Item 11, which represents the total profit or loss is reported to the IRS.


14. Where do I put my profit or loss on my tax form?
Please remember that PFGBEST cannot give tax advice or instruct you on where to report your trading gain or loss. If you have questions of this nature, please contact a tax professional or the IRS. The IRS does have a website which can be accessed at www.irs.gov.

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