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Beware Botched 1099-Bs, Form 8949 At Tax Time http://www.forbes.com/sites/greatspeculations/2012/03/14/beware-botched-1099-bs-form-8949-at-tax-time/ Besides my Forbes blog above and interview in WSJ this past Sat, my partner Darren Neuschwander, CPA and I had a long interview today with...

Beware Botched 1099-Bs, Form 8949 At Tax Time http://www.forbes.com/sites/greatspeculations/2012/03/14/beware-botched-1099-bs-form-8949-at-tax-time/ Besides my Forbes blog above and interview in WSJ this past Sat, my partner Darren Neuschwander, CPA and I had a long interview today with...

Forex is Section 988 ordinary gain or loss by default. If a trader wants capital gains and loss treatment, they must file a contemporaneous internal election - otherwise known as a capital gains election. We make a case for going further into Section 1256g lower 60/40 tax rates on major...

Good, TradeLog is the answer. It will show the correct trading gain and loss with wash sales, too. But, it will also show the discrepancies with the 1099-B and if they are large, you want to trim them down with 1099 corrections before filing. You don't want the IRS looking into large...

1099-Bs are dropping like bombs on taxpayers now. Many traders are flooding their broker's support lines and the brokers are not admitting their errors. Yes, formally demand a 1099-B correction, but you probably won't get one. Use TradeLog or other software and be sure of your trading gains...

There is an exception to using trade date rules for closing short sales of losing positions at year end. In that case, the trade date is really the settlement date, since delivery of the securities is required for a completed trade. The exception doesn't apply to selling a short sale at a gain...

Proper trade-accounting software calculates wash sales across multiple brokerage accounts and taxpayers should do this procedure to be compliant. Wash sale rules are poorly drafted and now the IRS is going to tie themselves up in a knot having to tackle them with botched 1099-Bs and Form 8949...

Tax reporting is trade date, not settlement date. Brokerage statements are settlement date. 1099-Bs should be tax reporting based on trade date. Odd, you mention IB reconciles with settlement date. I'll ask my colleagues at GreenTraderTax to comment on this further, as they do the tax prep and...

Yes, when brokers issue 1099-Bs, they send them to you and the IRS. This gets to the heart of the problem this year. Brokers are reporting income and loss incorrectly and the IRS is going to believe the broker and send you a tax bill for any differences, when it's in the IRS's favor. You need to...

We noticed this exact problem on wash sales with IB, for a few clients, too. Wash sales are deferred until you absorb them with offsetting gains on substantially identical positions, but IB may not be considering subsequent gains correctly. So, taxpayers may be overstating their capital gains by...

Did you receive an IRS notice for tax year 2011? Wow, that's fast if you did. Send me the notice and I'll look into it. Saw your update above. Is it a 2010 tax notice? Makes sense, as it's too early to hear from the IRS for 2011 tax returns yet.

Brokers are supposed to report 2011 stock purchases, and not options which are reportable in 2013. My partner Darren Neuschwander CPA will post on how different brokers are reporting, and problems that we are noticing.

Big Concerns with Botched 1099-Bs and Discrepancies on Form 8949 http://www.greencompany.com/blog/index.php?postid=139 As a leading CPA firm for preparing income tax returns for active online traders, we are spotting significant discrepancies between 2011 Form 1099-Bs provided by securities...

Here is my new blog: Big Concerns with Botched 1099-Bs and Discrepancies on Form 8949 http://www.greencompany.com/blog/index.php?postid=139 Notice I suggest filing an extension until many discrepancies can be worked out.

Big Concerns with Botched 1099-Bs and Discrepancies on Form 8949 http://www.greencompany.com/blog/index.php?postid=139 I was also included in the below WSJ article on this same subject. Dodging a 'Cost Basis' Crisis...

Getting Going: Dodging a 'Cost Basis' Crisis - WSJ.com http://online.wsj.com/article/SB10001424052970203961204577267323826980832.html

Thanks. Brokers are only required to issue 1099-Bs in compliance with phased-in cost basis reporting rules. They are not asked to generate Form 8949, although some are trying (poorly). It's impossible for one broker to spot wash sales across multiple brokerage accounts and that is what taxpayers...

Thanks everyone for the nice mention. I just added lots of new content on prop trading firms in Green's 2012 Trader Tax Guide. See a summary in our free Trader Tax Center. We cover many of the tax issues that come up these days. You are all welcome if you need tax prep help, too.

We are seeing major problems with botched 1099-Bs struggling with new IRS cost-basis reporting rules. Check our blog soon for major advice on the subject. Plan to file extensions for 4/15. Our firm won't sign off on most Form 8949s until these glaring 1099-B errors are corrected. This is a very...

Seems like this thread is losing interest just when we need support. This news in Germany isn't good. Merkel may have to cave on FTT more to pass her EU fiscal compact. Socialists are gaining power in Europe with Hollande and that weakens Merkel. On one hand, the current power sharing with...