I just summarize my trading per account. One line per account. Of course, I have declared mark-to-market accounting for my trading so I use Form 4797 to report trades. I am not sure if the IRS says to list each individual trade on Form 4797 or not. But anyway, I am not about to send them all in - I always put in a note: "individual trades available on request". We will see if I get audited or not. But anyway, if I did a lot of trades and I were reporting on Schedule D, I would attempt the same thing. Of course this is probably bad tax advice. But I can't justify the waste of paper.
Taxes at IB
- Thread starter roncer
- Start date
I just summarize my trading per account. One line per account. Of course, I have declared mark-to-market accounting for my trading so I use Form 4797 to report trades. I am not sure if the IRS says to list each individual trade on Form 4797 or not. But anyway, I am not about to send them all in - I always put in a note: "individual trades available on request". We will see if I get audited or not. But anyway, if I did a lot of trades and I were reporting on Schedule D, I would attempt the same thing. Of course this is probably bad tax advice. But I can't justify the waste of paper.
OEX options qualify for Section 1256 treatment (and 60/40 tax treatment). They are summarized on Form 6781, not reported on Schedule D. NB: IB's new Schedule D incorrectly includes OEX options if you traded them.
I also trade stocks, and I use TradeKeeper to prepare the Schedule D. I print it to a PDF and send that to Kinko's for 2-sided printing. I didn't think of printing 2-up, double-sided, and I may do that this year. You could also import your data from TradeKeeper into TaxCut, then do e-filing. If you e-file, it doesn't matter how big the return is.
If it goes on a Schedule D they all have to be listed.
http://www.irs.gov/pub/irs-pdf/i1040sd.pdf For starters look at page #6, middle column, last sentence. Then also look at page #7, middle column, last sentence.
Ron:
IB has Schedule D1's prepared for you this year. Open up your account management page. There is a "Tax Forms" line you can click on. You can see how many pages you'll need to print this year.
For reasons known only to IB they only have a "View Form" capability, no download. However, you can print though your browser. Let's say you have 500 pages again this year. I'd use the browser's "Save Page As" button to save the Schedule D file to your hard drive. Then whenever you have the inclination and time open the HTML file off-line (the "Open File" function in the browser). Then use the "Print", "Print Range" function to select and print a batch of pages.
I use Firefox, but I suppose Internet Explorer will have similar functionality.
Two cautions: If you transfered anything into the account and did not use the adjust basis feature IB offers for ACATS transfers, the purchase price (or sale price if a short) will be the price on the date of the ACATS, not your real basis. You'll have to recreate the pages with those errors as well as the summary page to get the correct amounts.
If you traded options, IB shows the options at the end of the Sched D1 but does not include the results in the totals box in the Sched D1 or in the 1099B as they are not required to do so by the IRS. If you used options to enter a position, etc., you may need to remove the option transaction and adjust the basis of the appropriate position. Again, this would require correcting the Sched D1 page showing the option, as well as the summary page, but not the 1099B. Remember, you prepare the Sched D and send it to the IRS, the broker prepares the 1099 series and sends them to the IRS.
There is a similar problem with Bonds but I'll let the reader work out the problem as an exercise.
Jack
IB has Schedule D1's prepared for you this year. Open up your account management page. There is a "Tax Forms" line you can click on. You can see how many pages you'll need to print this year.
For reasons known only to IB they only have a "View Form" capability, no download. However, you can print though your browser. Let's say you have 500 pages again this year. I'd use the browser's "Save Page As" button to save the Schedule D file to your hard drive. Then whenever you have the inclination and time open the HTML file off-line (the "Open File" function in the browser). Then use the "Print", "Print Range" function to select and print a batch of pages.
I use Firefox, but I suppose Internet Explorer will have similar functionality.
Two cautions: If you transfered anything into the account and did not use the adjust basis feature IB offers for ACATS transfers, the purchase price (or sale price if a short) will be the price on the date of the ACATS, not your real basis. You'll have to recreate the pages with those errors as well as the summary page to get the correct amounts.
If you traded options, IB shows the options at the end of the Sched D1 but does not include the results in the totals box in the Sched D1 or in the 1099B as they are not required to do so by the IRS. If you used options to enter a position, etc., you may need to remove the option transaction and adjust the basis of the appropriate position. Again, this would require correcting the Sched D1 page showing the option, as well as the summary page, but not the 1099B. Remember, you prepare the Sched D and send it to the IRS, the broker prepares the 1099 series and sends them to the IRS.
There is a similar problem with Bonds but I'll let the reader work out the problem as an exercise.
Jack
John:
In reading my post I note I made a mistake in what I posted . To clarify, here is the bottom of an IB provided Sched D1, Short-term -
Sub Totals. Net proceeds for stocks, bonds and T-bills.
12,559,846.02 ---------179,877.86
2 Totals. Add the amounts in column (d). Also, combine the
amounts in column (f). Enter here and on Schedule D, line 2 ⺠2
14,573,206.02---------173,642.86
The Sub-totals line is less than the Totals line. The difference (in this case) is due to about $2M in options that were traded. The $12,559,846.02 sub-total number shown is combined with any sub-total from the long-term Sched D-1. IB reports that total to the IRS via the 1099B process.
IB shows the total proceeds ($14M) on the D-1 but does not include them on the 1099B. There they use the $12M number as the law does not want them to report options proceeds on the 1099B. The taxpayer is responsible for properly completing the Sched D. This year IB provided all sales to the taxpayer via a Sched D. In the past the taxpayer had to prepare the Sched D from monthly/yearly statements. As I stated, the taxpayer must make any adjustments to the Sched D. IB provides the form as a service to its customers, it does not provide it to the IRS.
Jack
In reading my post I note I made a mistake in what I posted . To clarify, here is the bottom of an IB provided Sched D1, Short-term -
Sub Totals. Net proceeds for stocks, bonds and T-bills.
12,559,846.02 ---------179,877.86
2 Totals. Add the amounts in column (d). Also, combine the
amounts in column (f). Enter here and on Schedule D, line 2 ⺠2
14,573,206.02---------173,642.86
The Sub-totals line is less than the Totals line. The difference (in this case) is due to about $2M in options that were traded. The $12,559,846.02 sub-total number shown is combined with any sub-total from the long-term Sched D-1. IB reports that total to the IRS via the 1099B process.
IB shows the total proceeds ($14M) on the D-1 but does not include them on the 1099B. There they use the $12M number as the law does not want them to report options proceeds on the 1099B. The taxpayer is responsible for properly completing the Sched D. This year IB provided all sales to the taxpayer via a Sched D. In the past the taxpayer had to prepare the Sched D from monthly/yearly statements. As I stated, the taxpayer must make any adjustments to the Sched D. IB provides the form as a service to its customers, it does not provide it to the IRS.
Jack
Hire a CPA.