Get 1086 Form

The 1086 Form, also known as Form 8725, is used to report and pay the excise tax on greenmail. This guide will provide you with clear, step-by-step instructions to help you complete the form online effectively.

Follow the steps to complete the 1086 Form successfully.

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Enter the date of initial receipt of greenmail in the designated field to acknowledge when you received the payment.
3. Provide the name of the person receiving the greenmail and their identifying number in the respective sections. Make sure to print or type clearly.
4. Fill in the address fields, including the street number, room or suite number, city or town, state, and ZIP code.
5. In section A, enter the date you entered into the agreement to transfer the stock. This date is crucial for tax purposes.
6. In section B, enter the name of the corporation from which the stock is being acquired.
7. Complete the tax computation section. Start by entering the net sales price received from the stock sale.
8. For each acquisition subject to excise tax, fill in the date acquired, number of shares, and cost or other basis in the respective columns. Ensure accuracy to avoid penalties.
9. Calculate your gain by subtracting the relevant figures as instructed on the form. This will determine your total gain and other taxable income.
10. Input the excise tax amount based on your calculated gain. Remember, this is typically 50% of the gain.
11. If applicable, enter any tax previously paid on Form 2758. This will help in determining your tax liability on this form.
12. Finally, review all entries for accuracy. You can save changes, download, print, or share the completed form as needed.

Encourage others to utilize this guide to complete their documents online with confidence.