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It's a business expense providing you are a business trader before the expo. If you are an investor, it's disallowed as an investment expense - a miscellaneous itemized deduction in excess of 2% of AGI - under section 274(h)(7).

Wash sale reporting is the biggest problem with 1099-Bs, but there are many other types of problems, too. Everything from adjusting purchases, when they should adjust proceeds to vice versa, omitting transactions, double counting transactions, handling short sales wrong, and more. It's almost a...

Agree with you, but still think it's better to wait for final corrected 1099-Bs, so you can at least reconcile to those 1099-B amounts and show that adjustment/plug number on Form 8949 - if it's large, otherwise no plug number is better. Hopefully, within 4 months, the brokers will fix...

WSJ reported yesterday that James Giddens the MF Global bankruptcy trustee wants to pay customers another 10% of their missing funds, increasing the payout from 72% to 82%. Because, the final amount missing remains open, you can't take tax losses on the lost money in 2011. IRS issues tax...

IRS issues tax guidance on MF Global missing customer funds Forbes blog version. http://www.forbes.com/sites/greatspeculations/2012/04/12/irs-issues-tax-guidance-on-mf-global-missing-customer-funds/ As posted on the Commodity Customer Coalition(CCC) Website, the CCC requested tax guidance...

Extensions & MTM Elections due by April 17th. http://www.greencompany.com/blog/index.php?postid=145 Cost-Basis Reporting Problems & Solutions http://www.greencompany.com/EducationCenter/Trader-Tax-Center/Cost-Basis-Reporting.shtml We have good reason to believe - can't say how - that the...

From TradeStation to a client of ours. Dear Client: Previously, we notified you, in conjunction with sending out your original 1099-B Statement, that the new IRS cost basis reporting rules, and the delays associated with processing trade data to accurately reflect the cost basis for your...

OTA is bringing bad ethics and poor quality to taxes, too. OTA has a tax service this year using an Enrolled Agent, I believe from Israel. We watched his tax webinars and saw glaring errors and omissions. He suggests doing things you can't do - like deducting phony business trips to resorts -...

Caught Between MF Global And The Tax Man http://www.forbes.com/sites/greatspeculations/2012/04/05/caught-between-mf-global-and-the-tax-man/ My Forbes blog version. Does anyone have any other ideas for tax treatment on MF Global accounts with unrecovered funds in 2011 and 2012? I want...

Yes, you are mostly right on. Just make sure your Form 4797 total proceeds are equal to or greater than the Form 1099-B proceeds. For example in prior years, if you traded stocks and stock options, the 1099-B reported proceeds for stocks only, not stock options. (Options aren't reported...

Correction to earlier post. It's Mr. James W. Giddens, as MF Global trustee.

Yes, individuals can avoid Form 8949 on business trades with a Section 475 MTM election filed with the IRS by April 17,2012. They will then report business securities trades on Form 4797, instead. If you have segregated investments, those still go on Form 8949. If you don't want Section 475...

There is still significant money missing from MF Global customers’ futures accounts. The bankruptcy trustee sent MF Global customers 2011 Form 1099-Bs showing their realized and unrealized trading gains and losses from Section 1256 contracts. (Note: The cost-basis reporting crisis does not...

One of our clients emailed us the below. Spoke a final time to Ameritrade regarding the Wash Sale. They use Commerce clearing(maker of Gainskeeper) for their tax reporting. They are suppose to be the experts. Because the IRS instructions on the WashSale disallowed line on the 1099 were...

Last-Minute Tax Tips - WSJ.com Tax Report http://online.wsj.com/article/SB10001424052702304177104577310121246685642.html Ms. Saunders interviewed and quoted my partner Darren Neuschwander and me about the cost-basis reporting problems. See my comment #1. Kudos to the highly-respected Ms...

Last-Minute Tax Tips - WSJ.com Tax Report http://online.wsj.com/article/SB10001424052702304177104577310121246685642.html Ms. Saunders interviewed and quoted my partner Darren Neuschwander and me about the cost-basis reporting problems. See my comment #1. Kudos to the highly-respected Ms...

Extensions: Some traders may qualify for IRS penalty relief http://www.greencompany.com/blog/index.php?postid=145 It's getting too late to focus on complete tax return filings due by April 17. (April 17 is the tax deadline this year since April 15 is a Sunday and April 16 is a federal...

We name the names in our Webinar since we showed redacted 1099-Bs but anyone in the know can recognize them by broker. We showed example problems for Fidelity and Schwab, but I've seen reports from our CPAs and TradeLog about problems with almost every broker and clearing firm. It's a wide-scale...

See smoking guns on botched 1099-Bs from securities brokers in our Mar. 28 Webinar recording March 28, 2012 By Robert A. Green, CPA Our March 28 Webinar shows smoking guns on botched 1099-B reporting from brokers, apples and oranges in the rules between brokers and taxpayers and why...

See smoking guns on botched 1099-Bs from securities brokers in our Mar. 28 Webinar recording March 28, 2012 By Robert A. Green, CPA Our March 28 Webinar shows smoking guns on botched 1099-B reporting from brokers, apples and oranges in the rules between brokers and taxpayers and why...