TradeLog Software Accurately Calculates Capital Gains and Wash Sales for Schedule D

...and is the top choice of  LEADING TAX EXPERTS:
 

MOST BROKER PROVIDED PROFIT AND LOSS REPORTS ARE NOT ACCURATE ENOUGH TO FILE YOUR TAXES FROM TRADING!

Does your broker provide you with a profit and loss statement? Are you considering using it for your tax reporting? You may want to think again.

There is a reason that your P&L statement most likely includes a disclaimer stating that it is “for informational use only” and “not to be used for tax purposes”. That’s right – brokers know that their P&L reports alone cannot be used for filing capital gains taxes because there is a very good chance that some of the data they report is not accurate.

Here are the top 3 reasons your broker P&L reports may not be accurate:

1. Positions held open from previous tax years – brokers cannot always account for the original cost basis for those positions, especially if you transferred shares from another account.
2. Corporate actions and other accounting adjustments – often it is impossible for a broker to accurately adjust for corporate actions, exercised or expired options, or other required adjustments.
3. Wash Sales - The IRS wash sale rule adds a whole new level of needed adjustments. Most brokers do not report wash sales on their P&L – and if they do it rarely ever meets the letter of the law!

The simple fact of the matter is your broker is focused on executing your trades, not on doing your taxes! They provide P&L reports and other information because their clients demand it, and it may assist you… but you will always be accountable for your own tax reporting. And that is why leading brokers recommend TradeLog for the specialized tax reporting needs of their clients.

How does TradeLog generate accurate, IRS-ready Schedule D reporting?

TradeLog software uses the actual trade history provided by your broker – that is one piece of information you can usually trust. TradeLog then takes the trade history, matches it according to IRS rules, and then generates accurate Schedule D Form 8949 reports including all wash sale adjustments. Need to make adjustments for corporate actions? No worries, TradeLog has the most extensive adjustment functions of any trader tax software.

Some key features to know about TradeLog:

• Import trade history from over 30 online brokers
• Use TradeLog for an unlimited number of brokerage accounts
• Adjust for corporate actions, option exercises, expirations, and more with built-in functions
• Ability to edit any part of your trade history if needed
• Portfolio management and analysis tools
• The most comprehensive support of any trader tax software

DID YOU KNOW PROGRAMS LIKE TURBOTAX® OFTEN USE INACCURATE DATA FOR SCHEDULE D REPORTING?

You may be surprised to learn that the most popular tax software programs like TurboTax® and H&R Block At Home® use the same inaccurate broker provided P&L reports that we mentioned above. And most all of these popular programs do not automatically calculate wash sales – they may use limited wash sale reporting if your broker provides any, or they require you to manually identify wash sales.

Want proof? Read our Tax Topic about Popular Tax Software for real-life examples!

Another huge problem when using these popular tax programs is verifying that your trade history is accurate! In most cases there is no reconciliation or cross checking of the data imported into these programs. Most users simply reconcile to their broker provided P&L (which is usually wrong and not to be used for tax purposes) and blindly file their taxes. Without the ability to reconcile trade history, how can you be sure your tax filing is accurate?

Add to these factors the record limitations and inability to edit for essential adjustments like corporate actions, and you can understand why popular tax software alone is not enough for serious traders and investors.

TaxACT®, a leading tax preparation software program, has recognized these shortcomings and partnered with TradeLog to fill the need for accurate Schedule D reporting, and is our recommended e-file solution.

TradeLog software was designed especially for active traders, so you can be sure you file an accurate accounting of your taxes from trading!

The reporting requirements for traders and investors are some of the most complex in the entire tax code and many CPAs won’t even touch this type of work. With TradeLog, even the most active trader is able to generate their own tax reporting in minutes.

With TradeLog you can also e-file using popular tax software. TradeLog Form 8949 reporting can be imported into TaxACT® (recommended) and other popular tax software programs (some limitations apply), allowing users to e-file a complete and accurate tax return.

2011 COST BASIS REPORTING LEGISLATION USHERS IN A NEW AGE OF TRADER TAX ENFORCEMENT!

By now you may have heard about the new laws requiring your broker to provide better cost basis reporting information, including wash sales. If you think congress and the IRS enacted these laws to make your life easier, then you may want to read our Cost Basis Reporting Tax Topic to find out the real reason behind this new reporting legislation.

The truth is the federal government identified ‘traders in securities’ as one group of tax payers who were contributing to a multi-billion dollar tax gap. Legislation was forged to help the IRS be able to enforce the tax code and better identify traders who were misreporting their gains and losses. Starting in 2011 your broker will be providing a new 1099b, which will give the IRS additional information about your trading activity. This new 1099b will NOT provide all the information you need for filing your taxes.

Please read how the new Cost Basis Legislation affects traders and investors to find out why it will still be your responsibility to prepare your own Schedule D, and to make sure it is accurate.

The IRS has never rejected a TradeLog Schedule reporting!

For over 10 years, TradeLog has generated Schedule D reporting detailing trade history and wash sales. And to-date we have never been told that our reporting was rejected by the IRS. In fact, many of our current users found TradeLog when they received their audit notice and realized they needed something to correct their past returns! Trader tax experts agree – no other software handles your Schedule D reporting as accurately as TradeLog.

What you get with your TradeLog subscription:

• Full use of the TradeLog software at the record level purchased for one calendar year
• No limit on the number of different brokerage accounts or the tax years completed
• All software updates released during the subscription period
• Access to the most comprehensive support resources of any trader tax software – including technical support by phone or email
• Discounted annual renewal rates

NO OTHER SOFTWARE PROPERLY ADJUSTS WASH SALES BETWEEN STOCKS AND OPTIONS AS REQUIRED BY THE IRS!

Did you know that you are required to adjust wash sales between stocks and options? The IRS clearly states in Publication 550 that wash sales occur when “acquiring a contract or option to buy substantially identical stock or securities” (page 58). Wash sales must also be adjusted across ALL of your brokerage accounts. Do all trader tax software programs make these adjustments?

Consider Gainskeeper®, another leading trader tax software. Along with tax experts, we have studied Gainskeeper® reports and found a major problem: Gainskeeper® only adjusts wash sales between options with the same symbol, which almost never happens. This fact is clearly stated on their website.*  Such adjustments fail to account for stock trades in the same security or other contracts on the same security – all of which the IRS has identified within the scope of the wash sale rule. This explains why TradeLog is the top choice of leading tax experts!

Only TradeLog can ensure you file an accurate Schedule D!

If you are an active trader, or simply an investor, you need TradeLog. Thousands of users have come to rely on TradeLog as the most robust tax software with the best technical support. We encourage you to see for yourself what makes TradeLog the top choice of experts and people like you…

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