Are you saying that box 1 and box 2 figures include commissions? This is not the case def. The problem is box 1 and 2 are net of commissions. How do we report commissions expense on form 6781? Those commissions should be included in boxes 1 and 2. Why does IB report those separately on 1099??
I can't get into this as I really am not qualified. I just posted things from the web site and the IRS site. I understand line 4 contains commissions. If you think we are doing things incorrectly, send a note to the help desk, put 1099 in the subject line and they will forward it to the appropriate person. Note, the questions should be specific to how we completed the form as we are unable to give tax advice.
def, This is not tax advice they are asking, now I understand. You are reporting the wrong totals to the IRS. A trader needs the bottom line to match with that particular box. The rest of the industry can't be wrong and you right? Michael B. P.S. Every IB customer in the USA triggers an electronic audit, if they account for commish.
I'd be surprised if we are doing it incorrectly as I would have to imagine that the auditors signed off on them. In any event, this is not the place to debate the topic as I am not qualified to discuss this. I will add that if someone wants to send me an e-mail which clearly states the issue, I'll pass it along and make sure I get a proper response. That's what you all said when it came to the interpretations of PDT rules and cash accounts
This is a time tested issue not a new rule..... Can't you see the problem here?...you do not need to be a tax expert. The trader cannot rely on your report to the IRS, actually when the trader accounts for commish, YOU are causing not only the manual calculation of it, but also triggering an audit for your clients. Michael B. P.S. def, as far as emails...just point your people to this thread. Are you not concerned?
I am sure there have to be others here who trade futures with IB, how did you report this?? Should we include another line stating commission expense as Aaron has said he does? Is this OK? IB FUTURE TRADERS: HOW DID YOU OR YOUR ACCOUNTANT REPORT THIS?? Please tell us your story.
Electronic filers cannot add notes in turbotax. Besides the Electronic audit is still triggered. But I did not trade with IB this last tax year, but I can see the problem. I trade on and off with IB and this would be an issue that I would need an answer within 2 days though, and I would want a corrected 1099. Michael B.
I agree. You know I am thinking that most of time this ET board is as useless as tits on a bull. With all the IB threads I know there are lots of IB future traders here you'd think a few would step forward with helpful replies but not on this board. What a disappointment.
Both this year and last, I reported only the number on line 1 (2002) and 1a (2003). I did not bother doing anything with commissions, even though I would have loved to. But then again, I'm no tax expert, so I am sure I'm cheating myself out of some $$