Next Year is First Year Using MTM

 
If next year is the first year you are using MTM accounting:
 
In this unique situation, TradeLog MTM will prompt you for all the necessary information to make the proper entries in your next year data file for your section 481 adjustment, which will be filed with your taxes next year.
  1. Use menu item: File, End Tax Year
     
  2. If a next year data file already exists, TradeLog will ask:
    This procedure will overwrite your existing "Next Year Data file" if it exits.
    Is that what you want to do?
    - If you answer YES to this, the existing file will be overwritten and the existing data file will be lost forever.
    - If you answer NO to this, you may rename the existing next year data file and start over using File, End Tax Year.
     
  3. Next you will be prompted with the following two MTM questions:
    "Did you use MTM accounting for the current tax year?
    - Answer NO.
    "Will you use MTM accounting for the Next Tax Year?
    - Answer YES.
     
  4. A popup dialog box will ask:
    Are all of your trades imported for January of next tax year?
    These trades are necessary for TradeLog MTM to properly calculate wash sales for the current tax year which is using the cash basis accounting method.
    - Answer YES to continue.
     
    If your January of next year trades are not imported, please answer NO to this question, import them from your online broker, and start over again.
     
  5. TradeLog MTM will go out over the Internet to find year end prices for all of the open positions. If you are not connected to the Internet, or any prices cannot be found, the following price dialog box will popup: Please look up the year end price for this, enter it into the box, and click OK.
     
  6. A popup dialog box will confirm that your next year data file has been prepared along with providing the name of the file. TradeLog MTM will make all of the necessary entries in your next year data file including your section 481 entries, your open positions priced at year end prices, all of your January trades, and any wash sale deferrals.
     
  7. You may now run the following report and file with your Schedule D:
    Gains & Losses report including wash sales
     
  8. For next tax year, please open the next tax year data file that was automatically created. You may begin importing your trades from February 1 of next tax year onward.