Losing money on day trading

It's 3000 lost duduction, and the remainder get carry over for next year until you used them up.

And as for schedule D, you don't need to enter trade line by line. I assume you closed everything by 12/31/2005. Just write SEE ATTACHED, and write them the total (provided by your IB 1099). Attached the whole 1099 to your return. I did it for my 2005 return, and they accepted it.

Quote from alosito:

Last year lost a lot of money on day trading. I was using Interactive Brokers to complete trades. Was I supposed to track every single transaction for tax purposes to be able to write off some of that loss? The 1099 from IB shows that I actually had some income. How do people make up taxwise for some of the money they lose on day trading? What is the maximum you can write off every year?
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Guess what?

"See attatched" does not always fly with the IRS.
A 1099 is not a Schedule D.

EVERY transaction must be listed in Schedule D format on some sort of spreadsheet or equivalant software.

They have audited a number of people as a result of not filing a Schedule D, including myself in 2002. I am not saying everyone will be audited for this, but why risk it.

I resubmitted a Proper Schedule D and Uncle Sam was happy.
 
Quote from Sanjuro:

I can't believe GainsKeeper charges based on how many trades it imports. And when 1 trade gets broken into 5 orders to fill, it charges it as 5 trades.

What a rip-off for active traders.
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how many trades are you doing ?


When I was using it i never paid more than $200 for a year, and then Ameritrade started offering it free to APEX members so my cost went to zero for it.
 
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