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Showing content with the highest reputation on 09/04/2021 in all areas

  1. 1 point
    I have had no long term trades for the last 3 years. All my long term stuff has been outside the stock market, so my trading has gross income minus gross costs = total profits. Of course my costs included a few things other than commissions and the cost of equities purchased, but not many, even with the Active Trader designation. So I guess my experience is not really relevant to the long term and wash sale rules. I really am a fan of Turbo Tax, I started using it before they were affiliated with Quickbooks and I used QB from 1995 to 2010 for all my business. In 2010, my business was too complicated for me or QB to handle reporting to all the government entities and sending the appropriate money to them so I used an accountant and gave up QB. A couple of years after the sale of the company when all my finances settled out from it, I went back to TT for my trading taxes. If you set it for step by step instructions for the complete idiot, it's pretty hard to go wrong. I'm sure some of the other outfits that do it are good, but I've used TT since the mid 90's. Who are the two Men In Black knocking at my front door and why does it say IRS on their car?😱
  2. 1 point
    I am not a tax expert, I can only tell you how I handle this. The year-end 1099 tax forms from your broker have a "wash sales disallowed" number. Going into my tax prep, I've tracked all my trades so I know what my overall gain is, and when I add that "wash sales disallowed" number back into the "proceeds" number and subtract out the "cost basis" the total comes out to the gain I expect it to be. I can't say this holds true for everyone, but the math has always held true for me. When I calculate my yearly gain/loss for these short term trades, I don't factor in any wash sales - I just add all the winning amounts and subtract the losing amounts (to me they were all short term trades and I was kind of surprised to see anything show up as a wash sale in the first place).
  3. 1 point
    @akito Last time I checked, TaxAct and TurboTax both gave the option to enter totals and attach a document showing the individual trades. Not sure about other software, but those will ask you when you go to enter your capital gains info and then you just put the totals and it will populate your Form 8949 with your broker's name, then a line underneath saying "See Attached Statement". Then at the end before you file, it asks if you have a file to attach and you attach your Form 8949 worksheet from your broker. I actually just looked back at my 2016 and 2017 taxes and that's how I did it using TaxAct.
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