Can you or anyone else just clarify this for me please and this is not IB specific since everyone is going through the same thing. I actually use ML because I get so many free trades a quarter. So the 1099's are out. For the section 1099-B, there are three new "covered" sections for both short/long term and short sales. In addition, there is one other section called "noncovered" which would entail anything from derivatives, bonds, ETFs, etc. Anything in the covered section, does have both the proceeds and the cost basis right there in the 1099 report. All you have to do is basically type it in to your tax software. For the non-covered section, it would be business as usual, like in previous years. You must calculate and document that basis cost number yourself. The new tax software that I have taken a peak at has also been tweaked to accommodate these changes. In other words, when you key in each transaction into the tax software, it will ask you if it is covered or non-covered and if the basis was reported to the IRS or not. If you check non-covered, and the basis was not reported, you will be able to key in your cost basis for that particular transaction. The final tax software output for schedule D will end up including form 8949 and each page will be labeled, i.e. short term capital gain and loss, etc. with a header that has a check mark next to the section that says the basis was reported to the IRS, the basis was not reported to the IRS, neither can be check marked. So with all this being said, what are you guys talking about that you are waiting for March 1st for on the 8949 forms from your broker -- is this because you have thousands of trades and looking for a consolidated single number? Because I believe anything in the noncovered section will still not have basis reported, is this not correct ? What is the deal on this? Other than that, it appeared as if you only have a few dozen trades on the year or say even a hundred and don't mind typing them in to your tax software that can formulate the form 8949, it seems like this is something you could handle right now or not? Thanks in advance for any input.
There are Webinars scheduled which IB customers may register for at no cost and which will go into detail regarding the new cost basis rules and in particular, Form 8949. The first of these is scheduled for 3/5/12. See link below: http://individuals.interactivebrokers.com/en/general/education/webinars.php?ib_entity=llc
Your summary sounds pretty comprehensive. I'm waiting for my Form 8949 because I think I will need it to complete my return. There is no point in starting until I have everything I need. In my case, I usually do a few thousand trades. But I recently switched to trading futures. I mis-spoke when I said I still need a match report. I had forgotten that IB now provides it, though I think last year was the first.
Thanks for responding. I appreciate it. I re-read the thread and this is what is throwing me off; possibly since I am just not in the proverbial loop anymore. On the first page of this thread, someone else asks, in addition as to when they will be receiving the 1099, when will IB be providing a schedule D form? IB or any broker dealer never has provided this form. The schedule D is an IRS form that is the end product created from you or your the tax software. Is this form possibly instead some kind of year end summary work sheet that you are waiting for, maybe proprietary to IB? Then Jack chimes in saying something to the effect about the form 8949 sheet and alludes with some pasted verbiage as to IB possibly providing this. So this is what I am not following. Why or how could IB provide a form 8949 for you when this is basically a blank IRS tax form that you either fill out directly or indirectly via your tax software? Maybe its some kind of worksheet, but not specifically called form 8949.
These are simply worksheets prepared in a format consistent with Schedule D (in prior years) and Form 8948 (this year). Form 8948 is a new tax form which details the sale of capital assets and which provides summary data for Schedule D.
IB is the best in providing tax information to us. Personally, no broker can match them. What IRS did is just great. Going forward, as long as one trades with one broker, it is easy to file because all wash sales, cost basis, etc. is coming from the broker itself. It will be easy to provide all the info. accurately. I have been using tradelog software. IB provides tradelog format for download. I've no connection with tradelog. Just a happy customer of both IB and tradelog. IB helpful information: http://individuals.interactivebrokers.com/en/p.php?f=tax#US2 tradelog is at: http://blog.tradelogsoftware.com/resources/2011-forms/ Thanks
DeltaSpread: Jack just reread all his posts in this thread and he uses "8949 Worksheet". In early posts he bolded it. Jack's URL info was for those that wanted to read what the IRS had to say about the subject, rather than us experts here on ET. Others refer to the Form 8949 as being provided by IB, Jack does not. I thought his stuff was a model of clarity. Jack
mmmm...have to disagree that it's not different than previous years..at least-not for me..i have TaxCut 2011 right on front of me and stocks sales reporting procedure looks pretty much same. except for few new check boxes. however-i have no idea how and where to put IB's 1099-B. my IB's 1099-B contain 4 parts. covered long term,covered short term,short sales and noncovered. for example my question is -does basis and proceeds from covered securities short sales section of 1099-B included in covered securities short term proceeds and basis? or i have to report them separately. if so-how i suppose to report those covered securities short sales in software such Tax Cut or turbotax? no fun..no fun for me..use to take like an hour or so...now i'm sitting down clueless
You are right. I reread the posts of yours that I reread earlier and I just garbled what someone else said into your post regarding the form 8949. My sincerest apologies. I have not had to use a broker provided "worksheet" in years because I no longer trade with any kind of frequency. When I discovered this thread I panicked a tad because I thought I was missing out on something. Thanks for rereading your posts, my posts, and providing further amplification. Indeed a model of clarity you are.
IB-AN: In an early post I did a cut and paste of some info from the IB web site. The post read: Due to IRS reporting changes, links to TurboTax® software products are unavailable. We are currently working with them to re-implement this resource. In the past I've been able to use those Intuit QXF formatted files as an input to the H&R Block tax program. Per the quote above, IB is working on getting the TurboTax linkage fixed. I realize you cannot state whether or not I'll be able to use the TurboTax link directly (or perhaps not at all) , but do you think the TurboTax link will be ready concurrent with the 8949 worksheet availability or some reasonable time thereafter? It may save a huge amount of typing (and Bob111 from having a minor stroke). Jack