It's 3000 lost duduction, and the remainder get carry over for next year until you used them up. And as for schedule D, you don't need to enter trade line by line. I assume you closed everything by 12/31/2005. Just write SEE ATTACHED, and write them the total (provided by your IB 1099). Attached the whole 1099 to your return. I did it for my 2005 return, and they accepted it.
Guess what? "See attatched" does not always fly with the IRS. A 1099 is not a Schedule D. EVERY transaction must be listed in Schedule D format on some sort of spreadsheet or equivalant software. They have audited a number of people as a result of not filing a Schedule D, including myself in 2002. I am not saying everyone will be audited for this, but why risk it. I resubmitted a Proper Schedule D and Uncle Sam was happy.
OK, so TradeKeeper -- http://americanware.homeip.net/tk/ -- does seem like a cheaper option considering that it doesn't have any limit on how many transactions you want to work with. Are there any disadvantages of this using this product comparing to others?
how many trades are you doing ? When I was using it i never paid more than $200 for a year, and then Ameritrade started offering it free to APEX members so my cost went to zero for it.