New IRS schedule D requirements

[nkhoi]

Quote from AllenCook:

Commodities and futures such as broad index futures such as the YM are classified as section 1256 income and can be reported as net.

good point, score one for future trader.

 

[MRWSM]

Copy and paste the trades directly to a word document. Create the required heading and columns and totals and they are actually getting even more info than they want such as time and running balance. I don't see a problem with going with a 8 font, maybe even 6 if necessary and printing on both sides of the paper.

 

[MRWSM]

BTW Looking back I can't believe I got a dividend on SMH. I didn't know they paid dividends.

Question: In the future if I am short during a dividend payout, do I have to pay? Is there such thing as a reverse dividend?

 

[jimrockford]

Yes,

If you are short when a stock goes ex dividend, your broker will debit your account for a "payment in lieu of dividend", which you referred to as a "reverse dividend."

 

[dougcs]

Quote from kowboy:

Just picked up this letter from the AICPA newsletter. Aparrently new rules require each and every daytrade transaction to be listed on schedule D, and no more summaries.

Hope they soon reverse this rule as it would be impossible for high volume traders to comply with.

http://tax.aicpa.org/Resources/Indi...S+to+Eliminate+Scedule+D+Reporting+Burden.htm

kowboy,
Thanks for the headsup.

Has anyone tried "SImply Track"-it looks very good, is inexpensive, and worked well on my 2004 trades, including wash sale adjustments.

trial at: http://www.vbssol.com/

DS

ps-I have no interest in them other than getting references from users.

 

[Mr Guest]

Quote from dougcs:


Has anyone tried "SImply Track"-it looks very good, is inexpensive, and worked well on my 2004 trades, including wash sale adjustments.

trial at: http://www.vbssol.com/

I am using Simply Track this year. Seems pretty good so far. Fairly easy to import transactions.
I used this last year.
http://softwaydev.bizland.com/wssdg/

Does anyone know what's involved in undoing a MTM election? For example...5 years from now you decide to stop trading and pursue some other career.

I included an "election statement" with my 2004 return and am going to intentionally skuttle it by not filing the Form 3115 with my 2005 return. I think I will just stick with the Trader Tax Status/ Schedule C/D route. Just seems safer/ easier.
Thanks for any input.

 

[iceman1]

anyone have a good suggestion for OPTIONS trades.

Simply Track and a couple others seem only to handle mutual funds and stock trades.

Any suggestions would be appreciated.


Ice

 

[nkhoi]

Quote from Mr Guest:

..

Does anyone know what's involved in undoing a MTM election? For example...5 years from now you decide to stop trading and pursue some other career.

I included an "election statement" with my 2004 return and am going to intentionally skuttle it by not filing the Form 3115 with my 2005 return...

I didn't go thru with MTM filing either due to the undoing part, there was plenty of discussion on this last year and I recall somebody suggest tieing MTM status to a business entity and when its time is up you just stop reporting with that entity

 

[joeyata1]

false noki. you can elect cetain accounts mtm and others mtm. so you still get the advantges of mtm on the accounts you day trade and then you got your long term and commodity accounts you get the favorable tax treatment.if you get oput of the day trading business simply stop electing mtm as you're no longer in the trading bus

 

[prt_systems]

Quote from joeyata1:

false noki. you can elect cetain accounts mtm and others mtm. so you still get the advantges of mtm on the accounts you day trade and then you got your long term and commodity accounts you get the favorable tax treatment.if you get oput of the day trading business simply stop electing mtm as you're no longer in the trading bus

exactly. and you could actually restart the business at some later date and again, seek MTM or not (for example if you are trading futures ).

as always check with an accountant that knows this business......