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Tax Forms for Active Traders
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What about that brand new 1099-B for 2011 from your broker?

You may have heard by now: There is a new form in town. For the 2011 tax year, your brokers are required to track and report cost basis for securities, as well as wash sale adjustments. You will find the new instructions explaining the new boxes courtesy of the IRS here.

The newly revised form should give the IRS all they need to calculate your net gain or loss from trading. Sounds pretty simple. But, over the years, we have found many errors in the old 1099-B. Brokers reporting duplicate sales figures, including broken or unexecuted trades, or not reporting some sales at all. Throwing reporting cost basis into this mix is an interesting proposition.

How will the brokers handle positions held from a previous year? Positions transferred in from another account? What about previous year's wash sales adjustments that need to be included in the adjusted cost basis (to the benefit of the taxpayer).

How can a taxpayer verify the broker total figure is accurate? The only way is to continue providing their own calculations and verify that the 1099-B is indeed correct. The potential for error is simply too great. Our suggestion is that you do the math - deduct the total cost from total proceeds according to your broker, and if the net profit/loss does not meet with your expectations, it's time to go back to the drawing board - contact us for our service, and we will reconcile your trading as in previous years. You should not rely on the 1099-B as the only method to properly report your capital gains or losses. The burden ultimately lies with you, the taxpayer, for an accurate Schedule D.

Trading transactions reconciliation and tax form preparation for active traders.

Don't waste your money on "blackbox" software that claims to do it all. Have you seen the offers that seem too good to be true? They say to simply feed in your transactions, and a complete Schedule D or Form 4797 pops out the other end! As you may have found out by now, it's never that easy.

Flustered and frustrated ex-users of various software find us every day, having spent hundreds of dollars, and many hours of their time, without a satisfactory result.

We have been providing complete trading transaction reconciliation including the resulting Schedule D or Form 4797 for over a decade. Using state of the art software, custom written for us, as specified by the CPAs of , we have developed an accurate process that we are confident results in the most accurate results, based on the brokers' downloaded transactions.

With the dissolution of due to the retirement of the tax partner, Simona Dedek, formerly of is continuing to offer the same form preparation services via

The advantage:

  • We do all the work - we do not ask you to spend frustrating hours reconciling your trades, we do it for you
  • Personal service, tailored to your needs, attention to detail by specialist with years of experience

Our fees start as low as $125.00 for a Schedule D1 or Form 4797, depending on which broker(s) you use, and the number of transactions. If you do not currently useMTM accounting method, we do all the wash sale calculations, after we've reconciled your trading accounts, so you are in compliance with the IRS regulations. For more information, see IRS Pub 550.
We work directly with your broker's data

How will you approach doing your taxes this year? You've found our site, so you are most likely an active trader, facing several choices. You might end up filing as a basic investor, or you might qualify for trader status. You may already know that you are a trader with MTM election.

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