Deanwood, I believe, since you are mark to market, wash sales do not apply... http://www.armencomp.com/mark-to-market.html
I think I am going to file for mark to market accounting with the IRS for '09 My question is I have investments that I have owned for 2 years and I do not think I will be selling them for a few more years...Can I exclude those from being virtually sold on Dec. 31st and rebought on Jan 1st. If I do have to virtually sell and rebuy are they still Long Term capital gains or are they ordinary income? Here is where I see what is confusing me: from: http://www.armencomp.com/mark-to-market.html "Do not mark to market any securities you held for investment. Report sales from investments on Schedule D, not Form 4797. " --Oh I am compiling my trades from '08 do ALL the trades need to be written in my tax filing or can I just offer them my LT net gains and ST net gains?
I need to take a class on tax accounting! SO if you file for M2M this April have a stock value for Dell of 10K and at the end of the year it's worth 30K you pay taxes on those gains even if you don't cash out until the following year? if So what do you on it when you do cash it out? How in the hell does the IRS keep track of this shit!
I know this thread has mostly dealt with stocks... anyone know about currencys? I know that 60% of the gains are taxed at long term rate and 40% is taxed at short term rate.... but... if I start trading through an LLC, will I pay the long term/short term taxes AND pay on my personal income on the pass-thru (double taxed)? or because it passes through and taxes on gains were already paid, I dont? (seems like it would be considered income, and taxed accordingly???) I just wanted to see if anyone here knew (I will be asking my accountant when I drop my docs for 08's return) TIA!
They don't. You do. It's just like reporting capital gains on Schedule D. The IRS can determine if your reported gross proceeds from sales tie to broker submitted 1099s. But they can't determine if your cost for the stocks and reported profits are correct unless they audit you and ask for detailed records. If you think mark-to-market complicates things, try keeping track of your basis in master limited partnerships in which the distributions aren't taxed (and reduce your cost basis) and your share of the partnerships profits are taxed (and increase your cost basis).
real simple. the difference from the date of your mark to market to when you sell determins your profit or loss. in other words mark to market is just as if you sold every stock you own on dec 31 and bought it back jan 1.
open a future account. that would be a great solution. or I was annoyed by this rule years and years, I trade different tocks every day, particularly in december/janurary, 61 days gap. in that way, I avoid the wash sale adjustment, that is a headache if you have tons of day trades. actually most stocks performs according to the index, their intra-day charts are very simliar except those news on stocks, so it is easily to switch from one to another.
Hi, I am trying to research on how to list all trades on Schedule D. Reading thru the thread, I now understand how to deal with wash sale. For those stocks that I have a loss, I will make sure not to trade them in December or January for a period of 30 days. My question is the trade records: IB provides a Schedule D but it groups daily total for multiple trades for a stock. I understand that IRS wants to have all trades listed. What happens if you have 10 or 20 trades of a same stock on a daily basis, do you list them all on schedule D, which IB does not appear to help so I have to track them myself, or a simple day total as one trade will suffice as long as I do not violate the wash sale rule?