Hi def or any other IB support person, I'm using TradeLog software to do Schedule D for 2003. The IRS doesn't understand about futures and it said I owe a lot of $ when in fact 2003 was by far my WORST(large negative loss) year ever. But in order to use TradeLog sw I need to import monthly statements. Where can I get that off of the website? I got monthlys for 2004 and 2005, but none for 2003. Thanks. trader99
vhehn, The freakin' rocket scientists at the IRS don't understand futures. And IB sent them a stmt for 2003 and they take the NOTIONAL value as a gain. Geez. How do you report? Please advise. thanks
Form 6781: Gains and Losses from Section 1256 Contracts and Straddles Traders in commodities, including such Section 1256 contracts as futures, foreign exchange and nonequity options, report their trading activity on Form 6781, Gains and Losses from Section 1256 Contracts and Straddles. You enter the gross amount of your Section 1256 proceeds from your 1099 on Part 1, Line 2 (Net Gain or Loss) of Section 1, Contracts Marked to Market. The IRS cuts commodities traders a break by allowing them to split their Capital gains and losses, 60% long-term and 40% short-term. This is such an attractive deal that many commodities traders choose not to elect mark-to-market accounting, thereby retaining their profitable 60/40 split on gains. An added plus: losses on Form 6781 may be carried back three years against gains.
vhehn, thanks for your informative response. I appreciate that. So, how do I respond to the IRS? Where can I get the forms and the info to justify that I had a HUGE LOSS not a huge gain for 2003? I'm using TradeLog and I was able to generate 2004 and 2005. 2003 no monthly statements. And suppose if I did have the monthlys and generate the gains and Loss do I still need to fill out the Form 6781? I had big losses in 2003-2004. I like to use that to offset my gains in 2005 and gains in future years like 2006 onwards. How do I go about doing that?
I'm pretty sure you can have IB send you statements further back than two years. There will be a cost, I believe. Don't know how much tho. I always save each year to backup, so I'll have 'em "just in case". Good luck
it sounds like you didn't file the first time. you will have to refile or file an amended return for 2003.since 2003 will affect your following years you will have to file\ amend for those years also. ib has that 2003 data but it is expensive to get since they will charge you to research it.
Hey Trader, I just checked my account. They have a yearly statement which will go back to 2003. You can download it. It has all the trades for the whole year on it. Bert
Quote from trader99: The freakin' rocket scientists at the IRS don't understand futures. And IB sent them a stmt for 2003 and they take the NOTIONAL value as a gain. Geez. This doesn't make sense. IB generates a different type of 1099 for the futures trades, showing only P/L, not notional value.
You really think the IRS doesnt understand futures after 20+ years (or more). You may or may not have caught a winner, but to attribute such a thing to the IRS itself is gonna cause you more problems then it solves.