IB gain/loss statement including wash-sale calcs

Discussion in 'Professional Trading' started by bigpig41, Feb 12, 2011.

  1. Knew IRS was going to require brokers to include wash sale calcs into their software for the 2011 tax year. I see its on the recently released gain/loss statement for my 2010 trades worksheet as an individual trader. Is there any way to not include the wash sales? a box to uncheck somewhere?

    WHAT ARE THOSE THAT HAVE DECLARED MARK-TO-MARKET ACCOUNTING WITH THE I.R.S. TO USE??????? (wash sales don't apply to them) and since IB is the professional's gateway to the world makets aren't many of its customers on MTM with the IRS?

    I know most of you prolly export your trades to other programs.....but since I am now unable to use the standard ole gains/loss worksheet, is there a way I can just take the "trades" section of the activity statement and reformat what columns are shown so that it is more like the gains/loss worksheet?

    Also, does IB have two different sets of trades/profits data it is going to submit to the I.R.S.? One showing profits for those who are subject to wash-sales, and a different profit/loss calc. for those on mark-to-market? ...........or is it left up to MTM traders to inform the IRS that the profit/loss supplied by IB on behalf of the trader are WRONG because they include wash-sale adjustments?

    BTW........I'm not an unhappy customer...only complaint I've ever found with IB in two years is that when a stock is halted and then re-opened say in the extended hours.........you are unable to get in on the instantaneous opening action at the re-open as their system is delayed in showing the new re-opening prints as well as in allowing you to enter an order on the stock. I've set there on both FINL and this week in TTWO and watched prints come across the time/sales on my other broker's platform while IB is still in halt mode(and it had gone across the news wires that the stock was re-opened)...........OTHERWISE NOTHING BUT OUTSTANDING SERVICE FROM IB I.M.H.O.
  2. rwk


    I haven't gotten my tax statements yet, so I don't know how bad the situation is. The first year IB provided the gain/loss worksheet, it was wrong and unusable. Last year I calculated my own Schedule D-1, though I don't know IB report was wrong. This year I am leaning toward using IB's report regardless. Keep it simple. I figure that even if their report overstates my wash sale losses, the time value of money is currently near zero.

    I think your choice is to use IB's report and explain the discrepancies in a footnote, or do your own report.

    There is apparently no generally agree upon "correct" way to calculate wash sales losses. The IRS has said how they like to see it, but they don't give enough detail (in my humble opinion).
  3. I don't have wash sales ever as I'm on Mark-To-Market accounting.

    The further I dig into their reports I see that under Reports Management, and then under Activity Flex, and then by selecting Create New Flex Query.......then under the general configuration section there is a box that can be checked that either allows you to elect or not elect to enable wash sales. However your not allowed to select the 2010 calander year as the time period your querying.
  4. et_user


    I hope, all these brokers calculate wash sale using 13 months of data, I mean, ex. from 1/1/2010 to 1/31/2011. Otherwise, it is wrong with respect to wash sale. Think of it, if one does not trade all of Jan 2011 those stocks he/she traded in Dec., then, no wash sale consequences for tax year 2010. One should show wash sale trades through the year in Sch. D, but, tax consequences is only based on what trades were made in Jan 2011 in this example. If I'm wrong, help me.

    I hope, IB is doing the same using 13 months of data, their tax report is ready on 2/15. Could be the reason for that. Anyway, tradelogs software does that job nicely.
  5. BUT how does one print off gains/loss statement NOT including wash-sale adjustments?????????????????????????

    I'm unable to get accounts management to print off an activity statement that includes the newly available gain/loss statement
  6. et_user


  7. they did until NOW ..............I used their gain/loss statement for 2009 taxes
  8. et_user


    In that case, I would wait till 2/15/11, their official available date for IRS tax forms for 2010.
  9. that's a good idea......maybee more combinations of information are made available by then
  10. MR.NBBO


    The way I'm seeing this shake out, is that you'll have to declare whatever the broker reported on the 1099, then add footnotes
    adjusting that for the proper MTM or cross wash sale (across all brokers,all accounts). Really the only way to do this is to aggregate all your trades, across all brokers, and then apply the MTM adjustment, or the cross broker wash sale adjustment--depending on your accounting method. Starting with what is reported, and then showing the proper adjustments, line by line. The IRS will want to see how/why things don't match the cost basis.

    I'd then counter this with an "inventory approach" to help the IRS see that the above adjustment is cross checked and in proper order. These changes should certainly keep the CPAs and tradelog in business.

    Getting trade information to all brokers so they can prepare a more accurate wash sale adjusted cost basis/Gross proceed just isn't realistic...and I doubt they'd get it right anyway. There'd have to be a
    year end equiv. of DVP for information, for it to work in this fashion.

    >Not a CPA, just my 2cents
    #10     Feb 12, 2011