Thanks JackR. But you lost me on that last line of calculation, where you have +/- before Column G (adjustments). Assuming G is a positive number, is G added or subtracted from the total of Sale-Cost?
Lindq: I basically trade futures with an occasional equity/option trade. As such I don't have any trades showing an adjustment that I can look at. The IB example shows +/- G. Your example shows a positive "G" number. Do any of your actual trades also have negative "G" numbers? Comparing the two to what you think is correct would probably explain it. You might also listen to the webinar. It probably expands on the written info. It was pretty good, though I did not listen that closely to parts that did not directly affect me so I can't offer any more help. https://interactivebrokers.webex.co...T=pb&SP=EC&rID=53229562&rKey=4e185f9f5608ee15 Jack
one of my old brokerages has a message stating that penson will get the corrected 1099's out on....april 9. they've already changed it at least once and i think twice in the last week (it was april 4, and i think prior to that it was april 2). i see on another penson-clearing brokerage that they mailed out 1099s on april 2 and some were wrong, and they're going to have to correct them again / don't trust the ones on april 2. thank goodness i filed an extension.
I trade same few stocks many times over in the year, more as a swing trader. Normally I close with a month at the most, many times within weeks or even days. I do make sure that at the end of the year, I have clean slate, no positions - or at the most, one or two positions. I have my broker (IB) sending detailed wash sale transactions but as 100% of my trades were short term and closed within the same year, I write on the Schedule D1 (now F0rm 8949) clearly that I am not considering any wash sales. Had no problem in the past, and hoping the same this year too
You have to be out of the stock for 30 days across the year boundary for you to safely ignore the wash sale rules. Even then, your Schedule D and your 1099B won't match which could be a red flag.
1) tradestation sent something out just now saying "hey, some 1099-b's are likely wrong, including yours!" and it won't be issued before april 17. 2) found one of my penson accounts had sales and buys reversed on the 1099b. it hasn't been corrected yet, so i'll have to call my (former) broker and get them to get penson to fix it.
From TradeStation to a client of ours. Dear Client: Previously, we notified you, in conjunction with sending out your original 1099-B Statement, that the new IRS cost basis reporting rules, and the delays associated with processing trade data to accurately reflect the cost basis for your 2011 trades, may cause TradeStation to issue an amended 1099-B Statement. We have now determined that some customers, including you, might have received incomplete information so we will be issuing an amended 1099-B Statement as soon as possible. Unfortunately, it does not appear that the amended 1099-B Statement will be issued prior to the April 17th tax filing deadline. As you know, we cannot give you tax advice, so we encourage you to speak with your tax advisor to determine how best to manage your tax filing obligations, including whether it makes sense to file for an extension or, alternatively, amend your tax filing once you receive the amended 1099-B Statement. For non-tax related questions, call our Client Services Department at 800.822.0512 or 954.652.7900. We apologize if this delay has caused you any inconvenience and we thank you for your understanding and patience. Sincerely, William P. Cahill President & Chief Operating Officer TradeStation Securities, Inc.
Extensions & MTM Elections due by April 17th. http://www.greencompany.com/blog/index.php?postid=145 Cost-Basis Reporting Problems & Solutions http://www.greencompany.com/EducationCenter/Trader-Tax-Center/Cost-Basis-Reporting.shtml We have good reason to believe - can't say how - that the IRS is very behind the curve here and they don't even realize that 1099-Bs are a disaster this year on cost-basis reporting. While we hoped to get relief from the IRS on this matter, we learned we first need to educate them on the problem. And, they will need to see it for themselves. The early bird tax return filiers won't get the worm, they will get audited. Hold your powder, file an extension and stay tuned.
Let's say by the end of the calendar year, the 1099's STILL are wrong. At some point, you have to file. I know my numbers are correct. I know the 1099's are wrong. In a discrepancy, you have to pay what is right. Why not file & if the IRS has any questions, show them your trade history, which they have anyway from your 8949's, and they'll see you're correct? In an audit, you'd owe nothing because you did your taxes correct. I don't even see why you'd get audited when you give them all the info and everything matches except for the faulty 1099's which aren't my responsibility. You can't file based on 1099's, you file based on your trades. Why will updated 1099-B's effect your tax filing? You can figure your taxes today & know what you owe. Any changes on the 1099-B's won't change the amount you owe by 1 penny. Any thoughts on my logic?
Agree with you, but still think it's better to wait for final corrected 1099-Bs, so you can at least reconcile to those 1099-B amounts and show that adjustment/plug number on Form 8949 - if it's large, otherwise no plug number is better. Hopefully, within 4 months, the brokers will fix 1099-Bs better and the IRS will wake up to the problem and stop their tax-notice presses. Why rush to get a tax notice, when you can wait and hopefully not get one? Tax notices can be disturbing and the IRS can go fishing on your expense. It can lead to unending questions about wash sales, trader tax status Sch C expenses and much more. Tax exams are the worst and the IRS is starting to get out of control again on them again.