In 2010, I traded a high volume of stocks and options through Scottrade. This is the first time I have done this kind of volume. I can't imagine that writing down every single transaction is the only way to fill out my return. There has to be some software out there that will accept a download of my account activity from Scottrade, and account for wash sales? Please help!
1. List the TOTALS of your trading results on Sched D (Sales, cost basis, gain/loss). 2. Also write "See Attached Schedule" on Sched D. 3. Scottrade should provide you with a Gain/Loss worksheet for the year, that provides you with all trades listed in a format appropriate for Sched D. Print and attach this list to your return.
Hire a CPA. This is the CPA job. It is ridiculous to ask this question in this forum because nobody knows what is the state and federal tax laws except tax lawyer and cpa
Not true. I am a tax professional as well as a trader. What I do in a situation where there is a massive amount of trades is report the total proceeds and basis from short-term and the proceeds and basis from long-term on schedule D and mail in a copy of the broker's statement. There are programs that will prepare your schedule D-1 for you but it's not necessary. I've been doing this for many years and not once has the IRS contacted me about how I'm reporting it. As long as your total proceeds and basis match what the broker reports you're good. If they don't match you're gonna get a letter and possibly a correspondence audit (CP2000).
Doesn't solve anything for an individual. The money has to stay in the country it was earned and you have to report it to the IRS or face a $10,000 fine. If you bring the money into the US the IRS will tax you on it so you'd have to fly to the country where the tax haven exists and enjoy yourself there. Don't bring any money back without reporting it because now you'd be commiting tax fraud. Also, paper money has a microchip in it. When you're at the airport the money you have on your person gets counted based on the microchip. If you are carrying more than 10k you're gonna find yourself in a room with an investigator. You better be able to prove you earned the money legitamately or it will be confiscated.