TradeLog enables users to export the Gains and Losses Report (including wash sale adjustments) to any tax software that supports TXF files, such as TurboTax® or TaxCut®.

 

In accord with IRS guidelines, TradeLog calculates wash sales on unequal numbers of shares. However, TurboTax® and TaxCut® do not properly handle wash sales in that these software packages only calculates wash sales on equal numbers of shares. As a result, when users import the Gains and Losses Report into TurboTax® or TaxCut®, the software will generate wash sale errors even though the TradeLog report is accurate.

 

To allow for this, TradeLog generates the proper wash sale records in the Gains and Losses Report and "tricks" TurboTax® and TaxCut® into importing these by using a negative number in the COST column (e).

 

Please ignore these negative cost errors and print your TurboTax® or TaxCut® Schedule D and Schedule D attachments as planned. These errors will prevent you from filing electronically, but you will still be able to print the necessary IRS forms and file by mail.

 

IMPORTANT: We have been getting more and more feedback from our users about TurboTax®'s inability to properly handle wash sales or large volumes of trades. The latest problem deals with wash sales that are both for long-term as well as short-term not showing up in the proper part I or part II of the schedule d. This is NOT due to our TXF file output, but the problem is within TurboTax® and there is NO work-around for this!

 

Therefore, we strongly suggest that you do NOT import your TradeLog gains and losses into TurboTax®, but simply enter the totals into the appropriate columns d, e, and f of the TurboTax® schedule d, and attach the TradeLog G&L report as a substitute schedule d-1 attachment

 

In addition, there is NO provision to import your trades into Form 4797 if you have elected Mark to Market.