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I did not mean to suggest that IB gives their customers a user-friendly, meaningfully formatted report sutable for IRS reporting. What they give is what you pay for. For $1 you can't even buy a cup of coffee, so it is not surprising what IB provides as to "extras." But with this raw data...

Excellent observation. What's your address again? :p

I respectfully suggest that perhaps you do not fully know what IB provides, or how to utilize it. I work with their reports nearly every day this time of year, and the information is there for tax reporting. I'm not sticking up for IB. Thier reporting gives me agida. :cool: As to why IB...

Many brokers already do, and it gets better each year. Ameritrade is one of the best, IMO, as you can run the trade matching reports in numerous formats: with wash sales for regaular reporting, or without wash sales for you M2M traders. Plus, as required by IRS, they produce separate reports...

The fact is the IRS does get thousands of individual trades reported, or millions of trades for that matter. All one has to do is look at their form 1099-B (which is sent to the IRS every February) to see how insincere any claims are - that the IRS does not want to get this type of...

Absolutely, odd how they have such extremes in reporting. Keep in mind though that the 60/40 rule has the potential of being eliminated to cover the whims of Congress' spending habits. This tax bene was nearly repealed 1 or two years ago.

For those who might have difficulty clicking the link to the official IRS web site, here's another snipit from there: Q. What are the reporting rules for traders? A. On page D-3 of the 2005 Schedule D Instructions, under “Traders in Securities” it states: “Like an investor, a...

http://www.irs.gov/businesses/small/article/0,,id=153349,00.html You must enter the details of each transaction on a separate line. If you have more than five transactions to report on line 1 or line 8, report the additional transactions on Schedule D-1. Use as many Schedules D-1 as you need...

The exemption is available to "traders in securities" (as opposed to a PDT). To avail yourself to the exemption you must elect M2M by the due date established by IRS Rev Procedure. If you type in "wash sale rule mark to market" w/o the quotation marks into Google the first three hits will...

You could be correct, you must list each separate transaction (with reasonable, allowable aggregations) BUT possibly only if you have the fairly rare situation where the broker has NOT sent a form 1099-B to the IRS showing the net gains from closed transactions and the net year-end M2M paper...

The_End, You are basically correct. The Sec 1256 M2M is the default. The Sec 1256 M2M treatment basically just treats all open positions at year-end as being sold for tax purposes. The confusion often arises because of the optional Sec 475 M2M election. The Sec 475 M2M election really...

Looking at the same instructions you referred to (form 6781, Part 1, Line 1, found on page #3) the rules seem failry clear that the default is to list each transaction UNLESS you meet the fairly broad exclusion and are allowed to report the net amount found on form 1099-B.

In late April new commissions and margin rates will be coming. Currently, Ameritrade commissions are $10.99 for market or limit orders from 1 share to 1,000,000+ shares. Nice and simple. TD Waterhouse has a multi-level fee structure that generally charges from $9.95 to $11.95 for market...

Well this certainly is not rocket science! The instruction for IRS form 6781 are merely 3 pages long and they clear state when each separate transaction needs to be listed. Now, if you are saying you have muddy, gray area that you and your CPA can not clearly distinguish enough if you...

Right off the page you provided the link from: Note: You may read elsewhere (as I have) that this election may be filed by itself. The IRS clearly states that the election must be attached to the return or the extension request. Note: If you filed early you can still make the election if...

There's almost no situation I can think of where having a properly set-up LLC would not offer SOME benefit. The downside to an LLC is the extra fees and costs and bookkeeping required. But just going out and using any old LLC that you happen to have may or may not be a good idea...

nkhoi, The law was passed in 1997 and the IRS rules were made I believe in 1999. The M2M rules are easy on the surface, but quite complex when you get into the fine points. In no event (to my memory) have the rules for traders ever been so onerous that a taxpayer had the elect by giving as...

IRS (and the Congress) certainly can pick on big taxpayers and not the small ones. It's done every day. It is not "illegal" to buy and sell in an IRA, so there is no reason to ban it. What might be construded as "illegal" is not paying your taxes and not filing the apporpriate tax...

I wonder how long ago was the examination? As disclosed in an exclusive interview in Ed Slott's IRA Advisor newsletter a couple months ago http://www.irahelp.com/ the IRS is preparing to come down hard on non-compliant plans. IMO, the only thing holding it back right now is negotiations as...

This is a snipit from the SEC web site that uses the proper language and briefly describes the procedure. Wash Sale Activity 19. Between January, 2000 and April, 2001, Lee systematically manipulated the shares of various publicly traded issuers by engaging in numerous large wash sale...