It has become increasingly evident that many users are waiting to the last minute to use their TradeLog software subscription. This puts an undue strain on both you as the taxpayer, as well as our support team. The main reason TradeLog is sold as a subscription is so you can use it all year long.
Using TradeLog only once a year, at or near the tax filing deadline is not the most efficient use of our software. The problem is that it is too easy to forget how to use TradeLog, and too hard to remember what you did last year.
Furthermore, some brokers limit how far back you can get trade history, so if you wait you may be forced to enter some data manually. Importing on a regular basis will save you from manual data entry.
Therefore, our recommendation is to use TradeLog at least weekly or monthly throughout the year. You should import your trade history regularly, and make any necessary adjustments such as stock splits, mergers, spinoffs, and option exercises and assignments. It is so much easier to do this close to when these events actually occurred.
Then when you get your broker 1099-B in late February it is a simple matter to reconcile it with TradeLog, end the tax year, create your next year tax file, run the necessary tax reports, and file your taxes on time and with a minimum amount of effort and confusion.
We trust you will give this your careful attention, and thus experience a lot less aggravation come tax time.
David Eich, Owner and Chief Software Architect
Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Cogenta Computing, Inc. does not make investment recommendations nor provide financial, tax or legal advice. You are solely responsible for your investment and tax reporting decisions. Please consult your tax advisor or accountant to discuss your specific situation.