Tax filing with IB

BrianH · Mar 3, 2010

Quote from thurstonhowell3:

Or you could do it yourself with this handy software:

http://download.cnet.com/TradeKeeper/3000-2047_4-10078926.html

I guess if that still works why not, but don't count on any support -- the company seems to be out of business
http://americanware.homeip.net/tk

I've started the process with TradeLog. So far so good -- did the first smaller account with 200 trades and it came within 7 cents on the reconcile to the 1099 with $500K of trading.

spindr0 · Mar 14, 2010

Quote from caret311:

Hey spindr0, yes I did notice that quite a few folks use TradeLog but I find it way too expensive at 297$ for a year -- and it is to be repurchased every year. I was hoping to find cheaper solutions than that.

Also, you use TradeLog to spit out Sched-D? If yes, then do you use Turbotax to attach this sched D to? Or do you use Tradelog to spit out the TXF file format transactions?

The cost is dependent on the number of trade you make. My recollection is that up to 200 records is something like $75 per with 2-3 higher price increments for a larger number of trades. The $297 is for an unlimited number of records. After the first year, renewal costs 20% less (at least on the $297 version which I use). There's even a free trial if you want to see it in action.

I use Tradelog to print the Schedule D which I attach to my return prepared by my accountant.

Prior to 2008, I prepared the Sched D myself (spreadsheet). With about 500 transactions and no wash sales, it was fairly straightforward. Pair em up and print em out. In '08 the nature of my trading changed - I began doing some serious pair trading. I scaled in and out of large positions, even flipping from long to short and vice versa and as a result I incurred many wash sale. The tax code for wash sales is a freakin nightmare and while anything that doesn't carry over into the next tax year is no more than needless paperwork, it still needs to be computed correctly and printed.

I don't want to sound like a Tradelog pimp but this program does everything quickly and accurately. For the past two years I've maintained my daily spreadsheets and at the end of the year I've spent dozens of hours comparing my records to Tradelog's calcs and in every instance, Tradelog was dead on. Its '09 Reconcile had something like a 48 cents difference from my 1099 number and that's on millions of dollars of shares traded. That was due to round off errors, Not too shabby.

thurstonhowell3 · Mar 14, 2010

I've never used TradeLog, but it seems pricey to me. There are other options available for Schedule D prep that are considerably less expensive.

thurstonhowell3 · Mar 14, 2010

Quote from Bob111:

10 times every year..same question...here is how i report my stocks trades-
assuming we are talking about short term gains-take your proceeds,subtract your PnL-you got the basis cost. put those 3 numbers in your tax report-done

You are not in compliance and are asking for an audit.

Bob111 · Mar 15, 2010

Quote from thurstonhowell3:

You are not in compliance and are asking for an audit.

ok then..what should i do? My Sch D for all my accounts is around 2500-3000 pages. i'm sure there is a plenty of traders,who's Sch D is even bigger..should i print it and and send it via small pick up truck to irs?

BrianH · Mar 15, 2010

Quote from Bob111:

ok then..what should i do? My Sch D for all my accounts is around 2500-3000 pages. i'm sure there is a plenty of traders,who's Sch D is even bigger..should i print it and and send it via small pick up truck to irs?

As crazy as it sounds from everything I've heard the answer is yes -- you have to send that whole document if you want to be in compliance. As a long shot though you might try calling them and ask if they really want all of that. Problem is you're not likely to get an agent that really knows about trader status etc but maybe (?) worth a try. Please post if you figure anything out with this. TradeLog did a good job for me this year but paying taxes based on the change in account value made a lot more sense to me -- but then again making sense is not the highest priority of the gummint.

Bob111 · Mar 15, 2010

i file like an average joe. filing as a trader imo one big red flag. specially if you claim some expenses. i actually did call them and spend like 15 minutes with nice old lady. they don't want it,but..you must provide some document with all transactions in it. there is no "MUST" form and we agree on printout of all trades from excel file with really small font. i pull out one account and there is 59 pages in pdf-after i use small font-it became 4 pages. but i'm still clueless about rest of my accounts..good thing that one of my relatives works @ place where we can print 2K pages fast and free.

vikana · Mar 15, 2010

The the last many years I've done the following without being asked for any more supporting data.

1. Print out the first 5 and last 5 of the schedule D1 and ditto for the cost basis tracking
2. mail those 20 pages in along with form xxx for when you submit a sch D1 on paper.
3. In the cover letter offer to mail them copies of everything and/or email a PDF.

Bob111 · Mar 15, 2010

Quote from vikana:

The the last many years I've done the following without being asked for any more supporting data.

1. Print out the first 5 and last 5 of the schedule D1 and ditto for the cost basis tracking
2. mail those 20 pages in along with form xxx for when you submit a sch D1 on paper.
3. In the cover letter offer to mail them copies of everything and/or email a PDF.

Thank you vikana for a tip. i may have to try that,because sending 2K pages make no sense to me.
couple other things make no sense to me also..like-why do we have to pay @ postal office to send my taxes? both irs and postal office run by the gvt anyway? or why we have to buy\pay for a software from some third party for profit company to file the taxes to gvt?can't they just make this soft for "free"instead of wasting trillions on nonsense wars?
filing taxes should be nice and easy process at least like shopping at the mall.food and beverages should be for free for filers(got to respect the payers?), some music would be nice..

BSAM · Mar 15, 2010

Quote from Bob111:

Thank you vikana for a tip. i may have to try that,because sending 2K pages make no sense to me.
couple other things make no sense to me also..like-why do we have to pay @ postal office to send my taxes? both irs and postal office run by the gvt anyway? or why we have to buy\pay for a software from some third party for profit company to file the taxes to gvt?can't they just make this soft for "free"instead of wasting trillions on nonsense wars?
filing taxes should be nice and easy process at least like shopping at the mall.food and beverages should be for free for filers(got to respect the payers?), some music would be nice..

I feel your pain Bob. www.fairtax.org

BTW---Just today I carried my baggage down to my CPA. What a dopey scam the IRS is.