Accounting/Tax Software of Daytraders??

Quote from hayman:

IRS does not require a list of each and every trade, which would be ludicrous. Instead, I have been advised to do the following:

- I give a summary line on my Sched D, for each brokerage account that I trade in during the year, listing my P/L total, which should match exactly with your broker's statement.

- I keep a detailed spreadsheet of each transaction.

- Print out the monthly detailed statement that your broker sends you, and keep it for your records.

- Attached to my tax return is a letter, where I state that I'm a Day Trader, and that I am providing IRS with these (aforementioned) summary lines on my Sched D, and that I will furnish details (all trade history) upon request.

This has worked for me, and I believe is totally fair. To have to enter each and every trade for the year into a tax program would be ludicrous, would kill to many trees, and is something the IRS really does not want to have to look at anyway.
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This is very similar to my approach on the Sched. D. In the Details field I put in "details upon request"......and they can request it, and you should have every trade purchase/sale and gain/loss available for them....if they want it. This is an accepted method.

I USE TRADELOG AND IB.......It's correct down to the last penny against the 1099. They work perfectly together. I believe that IB has one of the BEST back offices I've ever experienced. Generally
1-2 glitches per 40,000 executions (most are dividend related).
TRADELOG is worth it ....at any price!
 
Quote from hayman:

What is Tradelog exactly ???? Does it interface with IB ?

TIA
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Tradelog is an accounting program that downloads all your trades from many brokers (including IB)...and computes gains/losses, commissions, performance, YTD/weekly/daily.
It also creates the schedule D line item listing of ea. trade that the IRS requires (especially if asked to provide it). It also labels short sales and sorts trades by varies categories.
It also charts many things in a basic form. It's a basic program but it's rock solid in how it does it.

If you do more trades than you can enter into a accounting program/excel by hand.....then it is worth its weight in gold (at least for stock trades). If your using turbotax/ ms money/ quicken .....or anything worthless like that, then this is the greatest thing since sliced bread. I hesitated at the price at first but now I'd pay almost anything to have it!
 
Quote from MR.NBBO:



Tradelog is an accounting program that downloads all your trades from many brokers (including IB)...and computes gains/losses, commissions, performance, YTD/weekly/daily.
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I don't agree it's an accounting program. As it's name correctly states it is Trade Log program. It imports and automatically matches trades, including short ones. Money or Quicken are not capable to do that automatically without manual editing. But TradeLog doesn't import cash transactions, debit/credit interest transactions, dividends. It doesn't track account balance. Analysis and charting capabilities are very primary. But it is quite reliable with IB and data from TL can be exported using clipboard to other analysis or taxes SW. Taking into account it's functionality - is very expensive.
 
Quote from trader333:

Project86

Business trader is someone who trades for living, since you don't you are a not business trader but you still have to use form 6781 to show p/l for commidities trades. Here is scoop of this situation.

People who claim as trader status can deduct their full losses from their trading activity and they can also deduct expenses related to trading such as broker commisions, data fee, computers, books and seminars etc. One the other hand if you do not claim trade status you are limited to deduct 3000 dollars capital loss in a tax year and you can not claim other expenses.
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I think that a trader is still subject to the $3,000 capital loss limitation unless he or she makes a timely mark to market election.

MSS
 
Quote from a5519:



I don't agree it's an accounting program. As it's name correctly states it is Trade Log program. It imports and automatically matches trades, including short ones. Money or Quicken are not capable to do that automatically without manual editing. But TradeLog doesn't import cash transactions, debit/credit interest transactions, dividends. It doesn't track account balance. Analysis and charting capabilities are very primary. But it is quite reliable with IB and data from TL can be exported using clipboard to other analysis or taxes SW. Taking into account it's functionality - is very expensive.
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It's certainly an accounting program, but a general one....but I agree with all else you stated. If you trade sizeable volume, it's a godsend. If you trade little, it might be expensive (so get the lite version.)

Tradelog can be found at Armen computing or thru greentrader tax accounting. It runs $95-345...depending on what you get. I have no idea if it works for futures or options.
 
Quote from MR.NBBO:



It's certainly an accounting program, but a general one....but I agree with all else you stated. If you trade sizeable volume, it's a godsend. If you trade little, it might be expensive (so get the lite version.)

Tradelog can be found at Armen computing or thru greentrader tax accounting. It runs $95-345...depending on what you get. I have no idea if it works for futures or options.
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Mr. N:

I use TradeLog for options and equities. It essentially treats them the same...a security is a security is a security from a short-term capital gains/loss perspective.

While the software doesn't do much beyond capital gains reporting, it does do that quite well and I would recommend spending the extra cash rather than trying to do it by hand in Excel (or, heaven forbid, having your CPA do it by hand in Excel).

Yours in making the market more efficient,

TF
 
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