Need help with schedule D preparation

Discussion in 'Trading Software' started by ashatet, Jul 23, 2009.

  1. ashatet


    I started trading and I ended up with 2500+ transactions, and I am struggling with getting it into Schedule D. Too many wash sales.

    I finally am getting close to finishing off this on my own in excel, but the probability of me making an error are high.

    The tax guys will want 100s of dollars for doing this for me, and I do not mind spending money on a tax person, but I will rather do it myself.

    I have seen some tax software that do schedule D. I was wondering if someone could suggest me a good software.

    Thanks in advance.
  2. ashatet


    I see a lot of views, but no one bothered to respond. I am sure you all use this some sort of a software. All I need is a good recommendation, there are so many of these and I find no reviews on any of them.

  3. ashatet


    Thanks, but I already know about this. I was looking for a recommendation that some one has already used.

    Thanks anyway.

  4. Just aggregate the numbers down to total $ amount of purchased value, and total $ amount of selling value.
  5. I used these guys last year. For $35 they created a complete Schedule D inclduing wash sales and also a .txf for import into Turbo Tax. It was worth every penny.
  6. hayman


    I think it's more of a function of whether your broker has a yearly downloadable element that can be imported into your tax software. Since I haven't been trading for 2 years, I cannot tell you what various brokers support now, and what tax packages support which brokers - this you will need to research.

    However, I was told by several accountants, and I did this for many years --> You can input a single "summary" line on your schedule D, that equates to the 1099 #'s provided by your broker. If you use multitple brokers, you should have a single summary line for each broker. Further, attach a note with your tax return (this means that you cannot file electronically), stating that you will furnish the IRS with the details of the "X" transactions, upon request. Make sure you have your broker's individual trading detail, in case you are audited.

    My single line entry might look something like this following, where a Description is required:

    2,500 individual stock trades

    State total purchase amount and total sold amount, and let your software calculate the profit amount. Make sure that your cost basis includes purchase commission, and make sure that your net sales price subtracts commission accordingly, as per IRS rules.

    If you are ambitious, you can enumerate your "wash" sales individually on Schedule D, separating them out from the rest of the pack (this was never an issue for me). This will complicate the return for you.