tax question

J

jason556

I'm a full time trader, last year I had a profit of 30k thru rebates on commissions, was getting rebates for adding liquidity - instead I was taking away liquidity, was a software bug so I had to return the money to the broker.

In brokers clearing firm website under "Cash History" it shows up as ECN/SOFTWARE FEE CORRECTION -30K USD

Form 1099-B "Gross Proceeds" is showing 30k gain, money which I returned, is there any way to deduct this ?

I haven't filed yet for 05 - Penson is the clearing firm.
 
1. I hope you are on extension
2. It is your right to receive an ammended 1099 from penson/broker.
3. Not a bad idea to hire a competant CPA.
4. You may not owe tax, but you have to file or it will bite you in the ass later.
 
A "CORRECTED" 1099 from the broker is your right as a customer.

The IRS may decide you owe the tax if the copy they have says you made $30K. You will need to prove to The IRS it was a broker error, and have the paperwork to back it up.
 
also, once I get the amended 1099 form - from Penson - do I then , need to have them send a a re-adjusted copy to IRS besides myself?.

- can I handle this stuff myself or assistance of a CPA is required?. -ty
 
I am fairly certain the new 1099 will automatically be sent to the IRS, just use the new information to file the return.

I am not a CPA, but have prepared a few returns. You really do not need a CPA, just makes life a little easier in the event of an audit. I would just keep all of your paperwork and file a return before August 15th!

I would not lose sleep over this, just stay on top of Penson or your broker to send you a correct 1099, that way your ass is covered.
 
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