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IB 1099-B appears to have many errors
- Thread starter fbell50
- Start date
This wash sale stuff is getting way too complicated.
It turns out that my purchase on the 8th of March was actually in two lots. (8 shares and 12 shares.) The 1st lot was purchased with a cash amount $424.04 (including $1 commish) The 2nd lot was purchase with a cash amount of $635.80 (including $1 commish)
On the 10th, I MEANT TO close out the 20 shares on the 10th, but used IB's SELL command, which defaults to 100 shares and so I sold 100 shares by mistake and was briefly 80 shares SHORT but 2 minutes later bought back those 80 shares as soon as I realized it.
So it seems to me there should be a loss of 11.84 on the 1st 8 shares, and added to the cost basis of the 2nd lot which is still on March 8th. Since the LONG trade is CLOSED on the sale of 100 shares on the 10th, there is no need of further adjustments of the 2nd lot (12 shares), since I'm "no longer LONG" the stock (pun unintended...haha!)
Then, buying back 80 shares to cover the short results in my being flat on the 10th. 2nd transaction showing up on the 10th.
The only thing I don't understand is how they came up with 13.64 versus 11.84 for the disallowed loss of the 8 shares. They seem to have closed the lots 10 shares at a time (even though there were not multiple executions) and somehow came up with an average cost of the first 10 shares of 53.000667 and then this results in roughly a 17.01 loss (513 - 530.000667) and then multiplied by 0.8 it roughly 13.60, which is CLOSE to 13.64 although I guess I'll never understand, down to the penny, how they came up with that number.
I HAD a trouble ticket in, but, frankly, I just canceled it now that I realize there were multiple lots purchased on the 8th and that I accidently closed the position by flipping short on the 10th and then covered as soon as I realized what happened.
I think I should just leave it be.
It turns out that my purchase on the 8th of March was actually in two lots. (8 shares and 12 shares.) The 1st lot was purchased with a cash amount $424.04 (including $1 commish) The 2nd lot was purchase with a cash amount of $635.80 (including $1 commish)
On the 10th, I MEANT TO close out the 20 shares on the 10th, but used IB's SELL command, which defaults to 100 shares and so I sold 100 shares by mistake and was briefly 80 shares SHORT but 2 minutes later bought back those 80 shares as soon as I realized it.
So it seems to me there should be a loss of 11.84 on the 1st 8 shares, and added to the cost basis of the 2nd lot which is still on March 8th. Since the LONG trade is CLOSED on the sale of 100 shares on the 10th, there is no need of further adjustments of the 2nd lot (12 shares), since I'm "no longer LONG" the stock (pun unintended...haha!)
Then, buying back 80 shares to cover the short results in my being flat on the 10th. 2nd transaction showing up on the 10th.
The only thing I don't understand is how they came up with 13.64 versus 11.84 for the disallowed loss of the 8 shares. They seem to have closed the lots 10 shares at a time (even though there were not multiple executions) and somehow came up with an average cost of the first 10 shares of 53.000667 and then this results in roughly a 17.01 loss (513 - 530.000667) and then multiplied by 0.8 it roughly 13.60, which is CLOSE to 13.64 although I guess I'll never understand, down to the penny, how they came up with that number.
I HAD a trouble ticket in, but, frankly, I just canceled it now that I realize there were multiple lots purchased on the 8th and that I accidently closed the position by flipping short on the 10th and then covered as soon as I realized what happened.
I think I should just leave it be.
I still don't understand why IB reported blank acquisition dates instead of "Various" on the 1099-B in the case of lots purchased on different days all sold at at the same time on a later date.
It seems to me this could mean the IRS is being told the data is "unknown" rather than "various" Am I correct in this assumption?
It seems to me this could mean the IRS is being told the data is "unknown" rather than "various" Am I correct in this assumption?
Quote from Bob111:
how you going to make an adjustments on your return? then the numbers are not going to match with IB's numbers that IRS is going to have from them and from you, on your 1099-B
Various "adjustment codes" are provided to change the broker reported basis on your return. I plan to add a column to the detail transaction report I will attach to my return to include the adjustment code. The IRS will be able to see which specific transactions I am adjusting. As is always the case, if they question my reported figure, further details can be provided such as the brokerage statement that shows the original stock purchase that I am not reporting as sold. But as I mentioned, IB doesn't know which lots of stock I previously reported as sold and therefore can't be relied upon to report perfect figures. This problem will go away over time but will be prevalent this year.
was happy after the webinar that I was able to use their formula to be applied to the 8949 worksheet to calculate the gain/loss for the year and actually have it come out within a few cents of what the gain/loss shows at the bottom of the "trades" section of my 2011 activity statement....HOWEVER, both of those figures(one from the 8949 worksheet and the other from the activity statement) have the wash sales adjustments included in the gain/loss.....since i'm on mark-to-market i need to subtract out the wash sales but am running into the problem where the total wash sales on the 1099 page 2 are 50K different from the sum of all the wash sales in the trades sections of the activity statement. Which is accurate?????????? not getting anywhere calling funds/banking or submitting tickets bout it to IB .
i figure out the formula on same day 8949 was released. just by playing with the numbers. IB webinar just confirmed that this is the right way to calculate PnL from 8949. pretty good info(unfortunately they did not cover mark to market)
http://www.elitetrader.com/vb/showthread.php?s=&threadid=236657&perpage=6&pagenumber=12
i would suggest to the poster above to talk to IB_AN here,on ET. about MTM PnL calculations.
for all,who was unable to attend webinar-here is the link-
https://interactivebrokers.webex.co...l=interactivebrokers&SP=EC&AT=pb&format=short
http://www.elitetrader.com/vb/showthread.php?s=&threadid=236657&perpage=6&pagenumber=12
i would suggest to the poster above to talk to IB_AN here,on ET. about MTM PnL calculations.
for all,who was unable to attend webinar-here is the link-
https://interactivebrokers.webex.co...l=interactivebrokers&SP=EC&AT=pb&format=short
Quote from jsmith:
Is there any option to notify IB not to calculate wash sales on my 1099?
I elected Mark-to-Market years ago and wash sales do not apply.
For mark-to-market you don't use Schedule D or Form 8949. You use Part 2 of Form 4797. So, you basically ignore the wash sale information that IB provides you. However, you can use the IB worksheets and 1099Bs as a way to test if your totals are in line with what IB is reporting. I haven't done mine yet, but I am thinking that it can't be that hard - you just need to take into account the disallowed wash sales when matching things. Maybe I'm missing something though.