4. Verify your TradeLog data
Verify that your TradeLog data has been imported and matched properly:
IMPORTANT: Please perform this step BEFORE you file your taxes. You must verify that the data within TradeLog is correct to ensure that what you are reporting to the IRS is correct.
There are two ways to verify that the data within TradeLog is correct, the tax year is complete, and all trades are properly matched:
1) Verify your open positions
-
The open positions in TradeLog must be compared with your broker's December statement of the tax year you are working on. The positions should be the same.
Click the Open button. The Open Positions as of: dialog box will appear:
-
Click the Year End Open Positions button.
Notice that the date has changed in the Last Date field and the dialog box now states that it is displaying Year End Open Positions. TradeLog is now reporting to you what was open as of December 31 of the tax year you are working on.
-
Verify that the positions shown in the Year End Open Positions dialog box match with those on your December Statement.
Note: Some positions might be showing on TradeLog but not on your broker's December statement in the 'Holdings as of December 31' section. Look to the section 'Trades Pending Settlement.' Trades pending as a buy will be reported as a year end open position within TradeLog.
If the open positions do not match check the following:
- Did you match specific tax lots with your broker? Please
click here for instructions on how to account for this.
- If you traded options and had contracts that were exercised or assigned, did you account for this in TradeLog? (See:
Option Exercise / Assign)
- If you traded options and your broker did not record the expiring transactions, did you use the TradeLog function to properly expire the options? (See:
Expire Options for details)
2) Reconcile your brokerage 1099 gross sales
Note: Since you cannot reconcile until the end of the tax year, when you have received your brokerage provided 1099B, we have placed the details of this important step under
Step 6. Ending the Tax Year.