Day trader and Tax Filing?

Discussion in 'Taxes and Accounting' started by noformstyle, Apr 13, 2010.

  1. Hello,

    When a day trader file tax, that person will have hundreds (even thousands) of pages of trading record to file??? For example, if I trade INTC 1000 times a year can I consolidate it to ONE LINE, "net gain or loss", instead of showing all diff dates, show wash sales etc etc. I just can't imagine 1000 of companies and hundred of trade per company. Thousand of pages.

    Doesn't the IRS already have that data sent from brokerage??

    Thx Kindly for help,
    I am not a day trader YET :)

  2. Surdo


    All the IRS has is your 1099B which only reports the sale(s)!
    That is what we have reporting software for.

    You could perform a search on this site or GOOGLE?
  3. I am not talking about getting a software, I can just print out all the data from my brokerage. I am talking about hundred of pages if I include all the dates, as I mention above. I don't like to file it electronically because it's easier for them to audit by IRS software.
  4. You'll have to mail it in a big envelope then. A lot of tax software won't allow you to transmit that many trades electronically anyways.
  5. trendo


    Good point. Not that I'm worried about being audited, but who needs that kind of pain in the ass?
  6. spindr0


    If you're reconciling your trades properly and you've correctly calculated your capital gains (as well as tax owed), why would you be concerned that filing electronically makes it easier for the IRS to audit you? What are they going to get out of you if your numbers are correct?

    I wish I could transmit electronically because this year it took a USPS Medium Flat Rate Priority Mail box to send it in. Two ink cartridges, a ream and a half of paper and a day and a half of printing. What a waste of time and resources!
  7. Bob111


    you not a trader,but worry about taxes :confused:

    make no sense..what was your question anyway?

    i report my taxes in one line..
    i also heard that beginning in 2010 IRS will have your Sch D from your broker. no way to cheat and maybe we don't have to file it anymore?
    i sent first and last 5 pages and cover letter with it.
  8. spindr0


    The gubbermint is making some regulatory changes. I don't know the cut off date but non CPA's are going to have to pass an exam in order to continue to prepare returns. I don't know if it's true but I also heard that at some point in the not too distant future, all returns will have to be transmitted electronically.
  9. what info was on the cover letter?
  10. Even if you have nothing to hide, it takes time to deal with an audit....and time is money.
    #10     Apr 15, 2010