ok guys, ive searched through the site and i know it was mentioned before but i cant find it, when doing taxes do i need to show all transactions on schedule D or can i lump certain trades together. i know options dont get reported to the IRS but i'll show those but can i just lump some together, for example if i traded same contract on the qqq's several times? how about futures, is there a separate form for those since the different tax treatment? or can i lump stock and optins (all short term gains/losses) and just show that net amount and the same for futures, or do i have to print pages of schedule D? thnx so much for any info.
You don't have to re-type all your trades on the Schedule D. You can just sum it up. But you still have to attach the list of trades with the gains and losses that tie to the number you put on Schedule D to the return. Options are not reported to the IRS, so if you want to be aggressive, you don't have to report them. The IRS knows liitle about them. I believe futures are treated the same as stocks and option for tax return purposes.
Janko, No need to provide the full detail of your trades - sum by broker and insert "Broker name(available upon request)". You can sum up securities and options activity for a single account on one line. I have done this and never had a problem with the treatment by the IRS. Make sure your reports do tie out in case if ever asked for. As for futures activity it is usually provided on a 1099 as a net realized g/l number for the year and goes on Form 6781 and then flows through to the Schedule D. Why are using schedule D if you are an active trader you should be "Mark to market" method of accounting - as good as insurance!! good luck!
Dude what you are suggesting is not merely "aggressive". Such an act would be committing outright tax evasion which is criminal and can result in some pretty major consequences. Just because it is not reported to the IRS by a third party does not mean he should not report it himself! While I am sure it is being done by some, I would be very careful saying that in a public forum...sounds very close to a recommendation and you do have a trading firm....just my humble opinion of course.
You're absolutely correct, my choice of wording was poor. I definately do not recommend not reporting the options, I was trying to be funny, guess that's why I'm a trader not a comedian, poor delivery!!!!:eek: