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Non-Tech : Stocktax: Stock Trader's Tax & Accounting Companion -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (11)	3/29/1999 9:23:00 AM
From: Labrador	Respond to of 118

Any comments on my post #11?

To: Labrador who wrote (11)	3/29/1999 10:18:00 AM
From: Madhur	Respond to of 118

1. Wash Sales At this point StockTax is not dealing with Wash Sales. As far as I understand it, wash sales are really only relevant when positions cross the tax year closing date. Otherwise as I quote from fairmark.com "Because of this basis adjustment, a wash sale usually isn't a disaster. In most cases, it simply means you'll get the same tax benefit at a later time. If you receive the benefit later in the same year, the wash sale may have no effect at all on your taxes." To properly deal with Wash sales, StockTax would need to know all the January99 buy's and check if you had positions during december98 for those stocks and then (if you had a loss) exclude them from the list of completed trades (disallow loss). The problem I see is that in the 1099 B list of ALL sales, which is "furnished" to the IRS, the grand total of all the sales then will NOT match! So this might create more problems, then it solves? 2. Mutual funds Usually you hold mutual fund positions for a long time, and many times cross the year end mark. Then of cause the first-in first out method will not always work, but then you also usually have only a few "trades" per year and can easily do it manually in a spreadsheet. The "actual" short term trader on the other hand can have thousands of trades per year, but will not hold many (if any) positions across December 31 Mark. Those have to be adjusted manually. 6. Return of capital Stocktax is currently not dealing with that topic. Cheers, Madhur

To: Labrador who wrote (11)	3/30/1999 5:20:00 PM
From: Madhur	Read Replies (1) \| Respond to of 118

Regarding Wash Sales: The problem I see is that in the 1099 B list of ALL sales, which is "furnished" to the IRS, the grand total of all the sales then will NOT match! Here is an example: Your grand total of all sales 1998 is 3,000,000.00, which appears at the end of the 1099 sales report which the IRS receives. Now if $5000.00 of those sales are wash sales, because you re-entered those positions during Jan99 your total will be 2,995,000.00, which is not what the IRS gets! And then in the next tax year you would have to ADD those wash sales to the total again, creating again a discrepancy.... What do you suggest how to handle this situation? Cheers, Madhur