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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: At_The_Ask who wrote (1368)	4/3/2003 9:54:52 PM
From: Jon Tara	Read Replies (2) \| Respond to of 1383

What the IRS cares about is that the total sales that you report matchs the total sales on your 1099s. If it doesn't match, that is a big red flag. My understanding is that you don't actually have to detail the individual transactions. At least according to my accountant - he says a single line-item for like-type (stock, option, index option) transactions is fine - using 'various' for acquisition and sale dates. But, of course, check with your own accountant. I got some grief on the Interactive Brokers thread for saying that. :)

To: At_The_Ask who wrote (1368)	4/4/2003 11:10:54 AM
From: m-top	Read Replies (1) \| Respond to of 1383

Really? So am I correct in assuming that the year end aggregate purchase and sales figures you calculate do not necessarily match those shown on your 1099? Thats the problem I have but there is a good explanation (I think). I had made several short sales on december 31st which show up on the 1099 as sales but in fact are still open positions. Thus the 1099 overstates the actual sales data relevant for 2002 tax calculations. I have similar issues with the 1099 gross purchase data as several long buys were also made on december 31st. Another issue which makes matters worse, is that I have noticed discrepancies with the trade dates shown on the 1099. They don't necessarily match either the trade date or settlement date shown on my year end brokerage statement! The good news is that the bottom line net change for my account per my trade history is consistent with that shown by my year end brokerage statement. I may let it go as is.