TAX question, help !

Discussion in 'Taxes and Accounting' started by uniafly, Mar 18, 2007.

  1. uniafly


    2006 was my first year of trading and now I am doing taxes, I use TurboTax.

    The software offered me to import my investments…

    My question is do I have to do this ? If I don’t import then whats going to happen ?

    I already entered info from form 1099, do I have to import data from my broker ?

    Thank you
  2. no you do not have to import unless you want to.
  3. Nothing's going to happen, it's just that you have to enter the data yourself, which you already did.

    BTW, what do you trade? Stocks are harder to deal with than futures when it comes to taxes.
  4. uniafly


    I trade stocks.

    I entered basically two numbers one is proceeds ( box 2 from 1099B ), and second number I entered is total purchases.

    I was thinking maybe IRS wants to have the information about all stocks transactions I have done. And I thought maybe that's what TurboTax implied when it offered me to import my investments.

    I guess I was wrong..
  5. You have to enter every single stock trade on your Schedule D. You can't just enter your total purchase and your total proceeds. You can either do it yourself, or you can use some type of software that does it for you.

  6. KMAX


  7. Yeah I got one question as well.

    If you have made money, but have not took them out from your broker. And the statements for taxes that they have send you does not contain apaper with either losses or gains.

    Will you still need topay taxes on the money that was not taking out and still with the broker????
  8. range


    For stocks, you must enter every transaction. See page D-6 of the Instructions for Schedule D:

    “You must enter the details of each transaction on a separate line of Schedule D. If you have more than five transactions to report on line 1 or line 8, you can report the additional transactions on Schedule D-1. Instead of reporting your transactions on Schedules D and D-1, you can report them on an attached statement containing all the same information as Schedules D and D-1 and in a similar format. Use as many Schedules D-1 or attached statements as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1 or the attached statements. Do not able enter “available upon request” and summary totals in lieu of reporting the details each transaction on Schedules D and D-1 or attached statements.”

    Note that this year, for the first time, the IRS says don't use a single line item and "available upon request". In the past, this has not been crystal clear. Now, it is. When the IRS is this clear, I would not ignore them and incur their wrath! Good luck!
  9. Surdo


    I guess you have never filed taxes before!
    You received a 1099 for Brokerage account proceeds, the IRS gets a copy of this, it is your job to provide The IRS with your realized cost on a Schedule D.

    Yes, you pay taxes on any "Realized Gains/Losses", regardless of whether you spent the proceeds or not.

    e s
  10. thanks
    #10     Mar 19, 2007