IB's year end statement

Arnie: Exactly. Disclaimer: I am not a tax professional, and I (as well as the people that do this) could be wrong.

FWIW, I found the following issues with my year-end statement:

- Trades that were manually entered by IB (with code of "M" on the daily statement) did not appear in the year-end statement.

- Trades that were cancelled are not correctly handled in the "1099 reported" column. If the cancellation trade was a sale, its value is shown in that column (and shouldn't be). If the cancellation trade was a buy, it doesn't have its value in the 1099 column (as a credit), but should (since the sale that it offsets is in the 1099 column). That is, they got the logic backwards on when to show the cancel trades in the 1099 column. I will note that they did it right on the 1099 itself this year, which is great, but that's why the 1099 column on my year-end statement doesn't match my 1099.
 
Quote from rwk:

I have been doing it that way too. So far, the IRS has not objected. I have heard that the IRS prefers not to get the detail, and I heard of one case where they said that in writing. I have also heard that they do want the detail. I have not heard of anybody being penalized for reporting the way Bob and I do.
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IRS wants every detail of every trade you have made. You can be
raising a red flag if you just put in totals. Then if you get audited,
you better hope you have all those trades ready to send to the
IRS because they will probably want them in 60 days or so....

This is what I have heard....
 
Quote from Bob111:

i never file every trade. all i do is put in description-Interactive Brokers,various, put sum of all trades,sum on exit minus comm and data,etc fees and that was it. work for me for last 5 years..
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"sum on exit minus comm and data, ect fees"? This year IB has
the commission already taken out of the the sale price. You have
to add the commission cost to your cost basis.
 
Lets not forget that post May-5 gains are different then pre May-5
gains also. And not to say the least, IRS wants you to put
"Short sale" in the Date sold box on your Schedule D which puts
that baby right in Part 1 of your Schedule D, (Short-Term Capital
Gains and Losses).if you have a short sell. Doesn't matter if you
have held the stock for 2 years or longer, ect...

I am not going to even mention if they catch you reporting your
wash sales incorrectly... :(
 
Quote from version77:

IRS wants every detail of every trade you have made. You can be
raising a red flag if you just put in totals. Then if you get audited,
you better hope you have all those trades ready to send to the
IRS because they will probably want them in 60 days or so....

This is what I have heard....
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that why i start this tread, because i want my taxes to be done as quick as possible to get some extra room if any questions from IRS rise. anyway-i have no choice but work with monthly statements from IB for second year.
i don't think that IRS need every detail for each trade, i do believe that same statements come to IRS from my broker and if they need-they always can compare and request those numbers.
as long as you tell them truth-you should be ok.how you present it-long list of trades or 3 numbers-does not really matter. IMHO of course.

thank you!
 
Quote from Bob111:

do believe that same statements come to IRS from my broker and if they need-they always can compare and request those numbers.
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The only number the IRS gets from your broker is the total number
of sales like you get on your 1099 which has the commissions for
the sales taken out. They do not receive the cost basis of your
sales (either long or short)... So the total sales # best be the
same as on your 1099...
 
MY IB year end statements are still not correct. What the hell do I do?

It says that there is a reported number 1099 number going to the IRS. There is a humongous difference between my actual p/l and what IB is saying.

If I add up all of my trades in Excel and figure out the P/L and send the actual p/l number to the IRS, am I going to be ok?

What the hell do I tell the IRS? Slip them a note saying that my broker sent them the wrong p/l on my 1099?
 
Quote from Reitberg:

MY IB year end statements are still not correct. What the hell do I do?

It says that there is a reported number 1099 number going to the IRS. There is a humongous difference between my actual p/l and what IB is saying.

If I add up all of my trades in Excel and figure out the P/L and send the actual p/l number to the IRS, am I going to be ok?

What the hell do I tell the IRS? Slip them a note saying that my broker sent them the wrong p/l on my 1099?
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Just make sure the amount of sales on your 1099 matches the
amount of sales on your Sch D that you are reporting to the IRS...

Doesn't have anything to do with how much you made or lost
trading this year... But of course you want your cost basis to be
correct also... IB does not give you a total for your cost basis.
That is up to you to figure out...

I would suggest talking to IB if you think your 1099 is wrong...
 
Quote from Reitberg:

MY IB year end statements are still not correct. What the hell do I do?

It says that there is a reported number 1099 number going to the IRS. There is a humongous difference between my actual p/l and what IB is saying.

If I add up all of my trades in Excel and figure out the P/L and send the actual p/l number to the IRS, am I going to be ok?

What the hell do I tell the IRS? Slip them a note saying that my broker sent them the wrong p/l on my 1099?
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Just remember that the 1099 "Reported Sales" is simply the total of all your stock sales, not your P&L. And options are not reported. So you have to add up all your stock buys and match them with the sales. The buys + commission is your "Basis". Seems unfair that all the IRS sees officially from your broker is a huge number representing just the sales. It is up to you to prove what you bought them at, and if that consitutes a taxable gain.

Taxes - a HUGE pain in the butt... :(
 
My futures P/L is completely wrong in IB. I did not carry any futures between 2002 and 2003.

I do not understand why my 1099 in IB is completely incorect. Shouldn't my futures 1099 be the same as my P/L for the futures?
 
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