My 1099B from IB has some non-covered securities, When I spoke with Turbotax they said only proceeds prior to 2011 are non-Covered and told me to call IB and correct them When I called IB they are saying they are partnerships types and they are reported correctly. Can any one please help me figuring out which is correct?
Ask a tax professional (A real accountant, not a "TurboTax tax mill"), not folks in ET. Best advice you will get this year about it.
IB is right. Download the form 8949 data from IB and you can see the cost basis for these non-covered securities. If they look right, you can give TT the correct basis associated with those transactions.
I went to HR Block they would charge too much if they see too many day trades, so just trying to study my self and file taxes.
Thank you for the clarity. I am still confused why BX is treated as such and how would I know this before I trade a new Symbol. Thank you for your help!
It's in the name - LP is for limited partner. These are publicly traded partnerships, and often refer to "units" rather than shares. You get a K1 if you owned it. http://ir.blackstone.com/investors/tax-information/default.aspx
That helps! Filing tax seems more complicated than learing to day trade. In addition to so many forms, Trade Station is classifying my SPY options as 1256 but IB says it is regular option trade and says only futures are 1256. I thought long term gain/losses needed to be atleast 1 yr.
Broad based equity indexes and options on those are sec 1256 for tax purposes. I don't know firsthand, but it's possible SPX options would be 1256 but SPY ones wouldn't (treating SPY as an equity). https://greentradertax.com/trader-tax-center/tax-treatment/section-1256-contracts/ Hopefully the 1256 treatment is better for you (partial long term gain treatment is better if you made money, rather than lost it).
Thanks for the link. I feel they are bit expensive for me. I was going through some of the companies below, please let me know if you have any recommendations. http://www.tradelogsoftware.com/ http://www.traderstatus.com/trader.htm http://daytradertax.com https://www.taxact.com/ http://tradematcher.com/cost/