Brokerage 1099-Bs may not be adequate for taxes
Knowledgeable CPAs and accountants generally find that their client's IRS taxable gain or loss is far different than what the broker reported. Why? Because the IRS has a totally different set of rules for taxpayers than for brokers.
Should you care?
- Yes, because simply using your client provided 1099-Bs may result in your client overpaying their taxes. Or they may underpay, and risk paying additional penalties.
- Additionally, if you knowingly file an incorrect return you are liable, and your liability insurance does not cover this kind of error.
- Please read the latest Forbes article entitled:
These Tax Errors Will Cost Professional Traders Dearly
Why you need TradeLog
- Accurate calculations based on rules for taxpayers, not brokers.
- Complete set of IRS forms for all securities.
- Simplifies section 475(f) Mark-to-Market accounting
- Calculate capital gains and losses, and wash sale adjusted cost basis.
- Adjust for corporate actions, option exercises, and other trading events.
- Avoid penalties for under reporting, or having losses disallowed by the wash sale rule.
- Combine all client accounts -- including IRAs -- into one report.
- Extensive editing capabilites help to get things right.
- Most exhaustive technical support of any trader tax software.
TradeLog Pro Version Features
- Professional version for CPAs and other tax professionals who need to prepare trader tax files for multiple active trader clients.
- An unlimited number of TaxFiles can be purchased per tax year (discounts available). One TaxFile included in subscription.
- TaxFiles created or converted by Pro user can be sent to a registered user who can open the file provided they have the same taxpayer name.
- Files created by a registered user can be sent to a Pro user who can open and edit the file.
- Once opened by the Pro user, the file can no longer be opened by any other registered user except for the Pro user and the taxpayer.
- See our Pricing page for details.