This is my first year that I have to report my "income" (when I actually lost money) from the sale of stock (at least from trading, I sold a bunch of GE a few years back, but that's different). I got my "2000 Consolidated Forms 1099" from Datek and I sold slightly over $200K of stock last year. Of course I also BOUGHT nearly $200K of stock last year. My question: I am using Turbo Tax Deluxe 2000 and I am at the part where I have to type in each stock I sold, the amount of shares, etc. How do I let them know that I bought as much as I sold in 2000 and that I actually LOST money for the year (only $2K)? They want me to enter each stock individually (!) for, like, 25 trades I made. Since everyone here has to do this, and I'm sure that I'm not the only one who has never had to file for this amount of stock sale cash, let's get a discussion going. Thanks.
For $225.00, you can get a copy of GTT Trade Log software. It automatically generates a variety of reports for taxes and makes keeping track on your trades a snap. It takes about a second to generate a complete report of all your trades for the day, week, month or year. You can find out more at this link: http://www.greencompany.com/GTT_TradeLog.htm
If you're only looking at 25 trades, just bite the bullet and do the data entry on schedule D. You'll see that there is a space to enter each buy as well as sell. Watch out for Turbo Tax. It is my experience that there are glitches in the program. Each year I swear I'll never use it again. Within the last hour I printed a schedule C for my wife's business and the program carried-over from 1999, incorrect depreciation numbers and placed them in "employee benefit programs". Each year it seems there is some new problem. Maybe it's just me. The other gripe I have is all the useless sheets, forms, comparisons that the thing wants to spit out. Be sure you are careful about wash sale rule. I haven't used the GTT Tradelog software but do use their service. . Good luck
This will be my first year to file as a "Trader," or mark-to-market. I think I have a good handle on my return, but I would like to be sure; does anyone know of where there is a step by step guide for M-t-M returns? I also have another question for all you option experts (have only lightly trade options, and always had my accountant handle the tax issues for them), my dearest brother lost a "TON" of money in option this year, and he is not mark-to-market. Do any of you have any suggestions I could pass along... Thanks
Ray; see http://www.greencompany.com for MTM guides. As for your brother; This is a very dangerous time for options trading but above all don't fight the trend.
Ray, filing as a trader, and electing M2M are two different things. You need to apply for M2M early. For example, if you send in the election with your return this April, you can use M2M rules for 2001 returns. Electing later than April 15th you won't be able to use it until 2002. You elect trader status when you file the return, for the current year. No rules there.
1. Sure is White, and I told him that, but he doesn't listen to me... I know you are into options. Do you have any ideas on how he could structure the losses, or is he stuck? 2. I elected last year, and last year it was April 17th.
Unfortunately he is stuck reporting gains/losses as they happened and limited to deducting only 3k in losses each year. The remainder carried fwd to the next year. If he is going to continue and anticipates another year of losses he should consider electing MTM now for tax year 2001.