Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: HappyPants Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: keeping records of investment trades Date: 4/30/2000 3:20 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
For the purpose of keeping tax records of trades, does the IRS require keeping the trade confirmation slips, or are the monthly statements from the brokerage enough?

I did look through the Fool Tax FAQs and also took a look at the Fairmark press web site. I also looked at Publication 550, Investment Income and Expenses.


Print the post Back To Top
Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35186 of 121095
Subject: Re: keeping records of investment trades Date: 4/30/2000 4:06 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
If the monthly statements from the broker give the right information, that would suffice. However, you may want your brokerage monthly statements where you can follow growth of the account. A box of manila folders won't break you. One is labeled "open trades" and it contains the confirmation slips from everything you now own. A second says "Closed trades 2000" and when you sell something you bought, you staple the buy slip to the sell slip. I write on the top one the profit or loss, so when I go through them to do taxes I can see whether Turbotax gets the same profit or loss figure that I did. Next year you start another manila folder "Closed trades 2001".
Your confirmation slip lists the selling price, commission, SEC fees, postage and handling fee if the broker charges one, and it lets you evaluate how much of your profit is being eaten up by trading costs.
The monthly brokerage statements belong in a 3-ring notebook, this month on top of (or behind, if you prefer) last month.
Once you have a system it is no sweat to keep up with it. I vote to save the confirmations, though the IRS would accept the brokerage statement.
If all you have is the brokerage statement, where you gonna find what you paid if you sell a stock 10 years later?
Best wishes, Chris
Once you have

Print the post Back To Top
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 35190 of 121095
Subject: Re: keeping records of investment trades Date: 4/30/2000 6:42 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
<<A box of manila folders won't break you. One is labeled "open trades" and it contains the confirmation slips from everything you now own. A second says "Closed trades 2000" and when you sell something you bought, you staple the buy slip to the sell slip. I write on the top one the profit or loss, so when I go through them to do taxes I can see whether Turbotax gets the same profit or loss figure that I did. Next year you start another manila folder "Closed trades 2001".>>

Yo!!! Chris!!!

When did you break into my office and take a look at my filing system!?!?!?!?! I have a copyright on this filing system. It's called the "foolproof stock gain/loss filing system - and I'm just the fool to prove it" (please note the small "f"). So where do you want my attorney to send the copyright infringment paperwork??? :-)

The system that Chris notes above is the easiest in the world. I've used it for years. I recommend it to all of my clients. You always have your open trades, and you always have your "buy" and "sold" slips matched up as backup to your Schedule D on your annual tax return. The only twist that I have (and recommend) is that you (at least annually) take copies of your "open" trade confirmation slips, copy them, and put them in your safe deposit box...or somewhere at a site different from your files. This will help you out in case of a casualty that destroys your files.

If you make a number of trades a day, you might need larger expanding files, but it's still the best way to fly...especially for a long term buy and hold Fool like me.

TMF Taxes
Roy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement