Log into the tax form section on the IB web site. Then change the option from PDF to Turbo Tax TXF in the section that says "worksheet for Form 8949". Download and save the file - then go to the import section of Turbo Tax and import it using the option "other financial software ( TXF file )
Just keep the details for your record, in case someone wants to see them. Show your totals reported to IRS on the detailed form.
That is contrary to explicit instructions from the IRS: See 8949 instructions page 2: "Do not enter âavailable upon requestâ and summary totals in lieu of reporting the details of each transaction on Part I or II or attached statements."
aren't we just talked about it? file on your own risk http://www.elitetrader.com/vb/showthread.php?s=&threadid=259456 i'm going to file exact same way i've done it for last decade. if something ever arise between me and US IRS -that would be a last year i'm filing any taxes EVER. i would rather sit down and do nothing at all(and yes,i will file for welfare,just fucking because),than being accused on any form of cheating,while trying to get those taxes right. take my best and honest try or nothing at all. it wasn't my f** fault that you made a filing taxes that complicated..
as a previous poster commented you must put down every transaction not just the total. do not get confused w/ 1256 contracts. here is a solution that will save so much time/stress/energy that i've used. here are the steps. it requires tradelog and turbotax premier edition. download transactions from broker (tradelog will give you specific instructions for each broker). run the tradelog program and follow the simple steps (yes it really is simple no matter how many transactions - the only time i had some trouble was when there was a stock split or merger and i had to go in and manually adjust a transaction but that was like 3 out of 300 transactions). tradelog will generate a file that you can then import into turbotax premier (you have to get premier b/c it is specifically designed for investments). i would caution against trying to import your txt file from your broker directly into turbotax b/c of wash sale probs and other probs that tradelog eliminates. disclaimer: i don't work for any broker, tradelog or turbotax. i just want to help you guys b/c i know how much doing taxes sucks - esp when there are so many transactions. oh one more thing if you get stuck the support for tradelog and turbotax is fantastic. hope this helps.
My accountant always typed in totals into his software and that never was a problem. But if let's say the IRS does not trust your totals so how sending them every transaction would be any better and more trustworthy? Is it hard to fudge the details to match the totals? I would say it's not.
Last year everything changed. You MUST report individual trades, and it really doesn't matter whether it is or is not more trustworthy. It's a complete and total headache, and that doesn't matter either. Tradelog is by far the best solution I know of if you have more than a few trades. Also, by the way, the taxpayer is responsible for filing the correct data. Last year, there were endless problems with incorrect broker data. However, it is not the broker's responsibility to be right, it's the taxpayer's responsibility. I strongly advise you not to just type in totals and think that will work. The only way it will is if the IRS just doesn't get around to auditing you.
But what's there to audit if totals are correct and match my details which again I should prepare myself using my personal records? According to you taxpayer is one and only correct provider of the data to the irs, so what they are going to reconcile? Me with myself? And people aren't obligated to use any software like tradelog to file their tax returns, aren't they?
Well, I didn't mean to say that the taxpayer is the one and only provider of the data to the IRS. The broker will also provide the data to the IRS on form 1099, and the IRS will (perhaps) check to make sure that what you and the broker say is the same. There are two things that are (very) (really, very) irritating about the new reporting rules. One is the shear work of reporting hundreds or thousands of transactions. The other is the fact that the brokers' 1099s are not always correct, which could trigger an audit. Irritating or not, you should know that the IRS now requires each trade to be reported by the taxpayer for many types of trading instrument. You may get away with just reporting totals as in the past, but you're asking for extra hassle. And the IRS places the ultimate responsibility for correct reporting on the taxpayer. The point here is that the taxpayer cannot point to the broker's 1099 and say, "Blame the broker if it isn't right." The taxpayer is expected to keep track of his trades and report them correctly, whatever the broker does. Last year there were big problems because in many cases the brokers' reporting was just wrong. You are quite right that it is not required to use Tradelog or any other software. I think, though, that you will find that doing it by hand is so difficult and time-consuming that you will be glad of some software to make it easier. So, FWIW, I think FrankSlaughtery's advice is very good.
Thanks Frank I saw that on tradelog site: Broker 1099-B reports are often useless for tax reporting...1099-B cannot be used alone for tax reporting. Does it mean I need to follow the P/L statement rather than 1099 or Form 8949 worksheet? I also think there is a error on my 8949 worksheet,what to do? Can I just ignore it and file tax with the data on 2012 P/L statement and trades history?