When does IB deliver it's tax forms online?
- Thread starter Kirribilli
- Start date
i didn't have this problem in the past. cause there was no covered\uncovered securities. all i did is subtract my PnL from Sch D from proceeds and that would be my basis. plain and simple. not anymore. digging out basis for each transaction on each ET'f for a year-it's quite a bit of work .. once again-not sure,why IB unable to report basis on it,while they have no problem report proceeds of the very same TRADE? trade that been opened and closed on same day!
Bob:
Dig out the 1099-B you got last year. It only showed proceeds. When you filled out the Schedule D (and D-1s) you added the cost basis which IB provided on the worksheet.. The same deal exists today for uncovered issues. The info is on the workshet coming on 1 March. The new requirement will make it more difficult for tax cheaters as time goes by as all issues will be "covered".
People will still need to make adjustments and explain the difference between the 1099 and the Schedule D\8949 if they adjust the basis due to selling options against an issue, etc.
Jack
Edited for clarity[12:35]
Dig out the 1099-B you got last year. It only showed proceeds. When you filled out the Schedule D (and D-1s) you added the cost basis which IB provided on the worksheet.. The same deal exists today for uncovered issues. The info is on the workshet coming on 1 March. The new requirement will make it more difficult for tax cheaters as time goes by as all issues will be "covered".
People will still need to make adjustments and explain the difference between the 1099 and the Schedule D\8949 if they adjust the basis due to selling options against an issue, etc.
Jack
Edited for clarity[12:35]
Quote from Bob111:
once again-here is an example..IWM traded in and out all day long(not prior 1/1/11)
The IWM is one example of an ETF which is not considered a 'covered' security for 2011 trades but will be treated as such effective 1/1/2012. When determining the phase in plan for 'covered' vs 'uncovered', only those unit investment trusts organized as regulated investment companies were considered 'covered' by the IRS for 2011. ETFs, including IWM, are treated in a manner similar to mutual funds and therefore not considered 'covered' until 2012.
In previous years, *all* transactions were uncovered, but we still had to identify wash sale adjustments and dig out the cost basis for each affected trade. I don't see that this year will be much more work. It's just different, and understanding the requirements will take some time, patience, and peace of mind. The biggest problem at this point is that we don't yet have the Form 8949.
The IRS specifies the information which the broker is required to submit and does not allow for the submission of additional information which the broker could theoretically provide (think of it as a data file with a defined record layout). Even if we wanted to supply them with a Schedule D, they wouldn't accept it. Moreover, since some taxpayers conduct transactions across multiple brokers which need to be considered in aggregate at the taxpayer level but which couldn't possibly be recognized by any one broker (e.g., wash sales or the purchase of a security at one broker and transfer to another for resale), submitting a Schedule D, or Form 8949 for that matter, wouldn't be of much help.
What IB could do that would be a big help to me, and probably many others, would be to make available the raw data (particularly matched purchases and sales) that are used to prepare the 1099s and 8949s. That data may be available via FLEX reports which I haven't looked at in a long time. What I do now is save my 12 monthly statements in .CSV format and then pick out and match the purchase and sale transactions using a program I wrote.
Once the Form 8949 becomes available in Account Management (scheduled for by end of day 3/1/12), you will also be provided the ability to download it into a .CSV format which can be then imported into a variety of applications including Excel. This is the same as was the case in prior years for the Gain/Loss Summary which the Form 8949 is intended to replace.