TradeLog Blog

How the IRS Wreaks Havoc on Active Traders With Obscure Tax Rules

When it comes to taxes, the IRS serves as judge, jury and executioner. Ignorance is an unacceptable excuse. Trader tax rules are notoriously confusing for do-it-yourselfers and pros alike, causing people to overpay or get penalized for misreporting gains and losses.

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Tags: 1099-B, Trader Taxes, Options

Reporting Cash Settled Exercise for Section 1256 Contracts

Learn how to report the cash settled exercise of a Section 1256 contract for IRS tax reporting.

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Tags: TradeLog Tips, Corporate Actions, Section 1256, Options, Trader Taxes

TradeLog Tip: Important Functions for Option Traders

Traders of option contracts sometimes overlook adjustments that need to be made for accurate tax reporting. TradeLog can make these adjustments easier with a few important functions. Here are three tips for option traders:

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Tags: TradeLog Tips, Options

ETF Options and the TradeLog Benefit

Exchange traded funds (ETFs) are becoming more and more popular. Did you know that ETF options can have special tax handling? Some of these options qualify as section 1256 contracts. Under Section 1256 the gains and losses are treated as 60% long-term and 40% short-term capital gains/losses, regardless of the holding period. What qualifies an ETF option as Section 1256 depends on it's structure and whether the option is listed or over-the-counter.

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Tags: Trader Taxes, Options, Section 1256