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Author: rruyy Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121339  
Subject: Tax Help Date: 2/22/2004 12:00 AM
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I started doing my taxes using Turbo Tax and my biggest problem is that I have a gazillion stock trades.

Anyway here are some questions.

I did my trades on Ameritrade. Is there a way I can download those trades directly into TurboTax?

If not can I just claim all the purchases of a certain stock that I bought and sold as 1 purchase and 1 sale?

Can I deduct interest from margin? If so what form is that?
Can I deduct trading fees? If so what form is that?

And I have bought and sold options. Can I just list these on the form where the stocks sales are or do I have to use the one with the "Straddle stuff" in it? If I have to use the one with the "Straddle stuff" what does this mean "Unrecognized Gain on Offsetting Positions" and "28% Rate Loss for Collectibles and Small Business Stock."


In essence I have about 300 trades and I don't think I can manually follow what all this "unrecognized gain" at every sale. Can't I just add bunch like shares into some consolidated bunch on both the purchase and the sale. This is a nightmare!

Thanks in advance.

rruyy
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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69935 of 121339
Subject: Re: Tax Help Date: 2/22/2004 12:23 AM
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I did my trades on Ameritrade. Is there a way I can download those trades directly into TurboTax?

Beats me. Have you poked around on Ameritrade's site and the TT instructions?

If not can I just claim all the purchases of a certain stock that I bought and sold as 1 purchase and 1 sale?

Perhaps. If you have a lot of trades in a single stock, you might have run afoul of the wash sale rules. Rather than attempt to explain them here again, I'll direct you to the FAQ (the link is at the top of the box on the right) and to the search function (type in wash sale, grab a cup of coffee, and learn to your heart's content).

Can I deduct interest from margin? If so what form is that?

Yes. Form 4952, which flows to schedule A.

Can I deduct trading fees? If so what form is that?

Depends on what you mean by "trading fees." The buy and sell commissions are part of the gain/loss on each transaction. Account maintenance fees are an itemized deduction on schedule A, and will also affect the deductibility of your investment interest on form 4952.

And I have bought and sold options. Can I just list these on the form where the stocks sales are or do I have to use the one with the "Straddle stuff" in it?

Depends on whether any of them are straddles or not.

If I have to use the one with the "Straddle stuff" what does this mean "Unrecognized Gain on Offsetting Positions" and "28% Rate Loss for Collectibles and Small Business Stock."

Sorry, but on this one I have to pass. I get $200 an hour to figure this kind of stuff out. I can't afford to spend time on it now.

In essence I have about 300 trades and I don't think I can manually follow what all this "unrecognized gain" at every sale. Can't I just add bunch like shares into some consolidated bunch on both the purchase and the sale. This is a nightmare!

Boy, it would be good to know the effects of one's financial transactions before jumping blindly into them. You can do some consolidation of similar transactions, but you need to know that they receive the same treatment for tax purposes before lumping them together.

--Peter

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Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69937 of 121339
Subject: Re: Tax Help Date: 2/22/2004 12:43 AM
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Good grief. You're in a world of hurt.

I did my trades on Ameritrade. Is there a way I can download those trades directly into TurboTax?

I doubt it, but you might ask Ameritrade. My guess is that the best you might do is to download 1099-B data.

If not can I just claim all the purchases of a certain stock that I bought and sold as 1 purchase and 1 sale?

No. The IRS wants to see one Sched D entry for each sale of stock. If you sold stock on 200 occasions, you're gonna have 200 lines of data. But note that you're just reporting sales, not purchases.

Can I deduct interest from margin? If so what form is that?

If you itemize, you can deduct margin interest on Sched A. But the deduction is limited by your investment income, and in a new twist this year, qualified dividends are not investment income...

Can I deduct trading fees? If so what form is that?

Not directly. Trading fees and commissions are added to your basis, and so decrease your gain (or increase your loss).

And I have bought and sold options.

In most cases, gains and losses on options are reported in the same way as gains and losses on stock sales - on Sched D. If you're involved in straddles then things get a bit more complicated. (And with all due respect, if you really think of it as "straddle stuff" maybe you ought to reconsider what you're doing...)

This is a nightmare!

Well, yes it is. You might have looked into tax reporting issues before you did some 300-odd transactions. Well, too late for that now. You might have a look at IRS Pub 550, which discusses investment income and how it's reported. And you might try keeping good records as you go along - it's frustrating and difficult to try to put all this together from a year's worth of statements.

Lorenzo

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Author: dougdoogle Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 70005 of 121339
Subject: Re: Tax Help Date: 2/23/2004 11:24 AM
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>>>Sorry, but on this one I have to pass. I get $200 an hour to figure this kind of stuff out. I can't afford to spend time on it now.<<<

A lawyer once asked me if I knew what free advice was worth. Finally I know.

Thanks.

Doug

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