Adjust Trades |Form 8949 Capital Gain & Wash Sales calculator software

Deposit into Account


Why do we deposit the money into an account?

Deposit is an umbrella term for any money you receive into any account you track in TradeMax. There are times when you want to deposit a sum of money to an account to better manage your transactions . Follow the step-by-step wizard to deposit money into account.

  1. Select the record to which you want to deposit .

    Learn more about: How to select trade records.

  2. Right-click on the selected record and select the Event Append in the context menu, then choose Deposit into Account in the dropdown list

  3. A dialog box will pop up:

  4. Type the information into the box:
    • There are two kinds of transactions in the dropdown list:  Deposit to Account and Withdraw from Account. The default Transaction depends on your location in the previous step.
    • Select the Transaction Date with your mouse or enter using your keyboard
    • Account is the account to which the selected record belongs .
    • Manually enter the amount you want to deposit. The Amount is equal to Base Amount.
    • The description of the security displays in Notes field automatically.
    • In Event Included In Year field, you can activate the checkbox and enter the specific tax year , so that you can view this record in the Baseline view of the specific financial year.
  5. After checking the information, click the OK button to continue the process. You will see the following grid:As you can see from the above picture, the new  Deposit record is generated.
  6. You can cancel this action with the Undo Button in the trade tab..

Withdraw from Account


Why do we withdraw from an account?
There are times when you want to withdraw a sum of money from an account to conduct other transactions. TradeMax provides you with such a function to manage your portfolio better .

Follow the step-by-step wizard to withdraw from account.

  1. Select the record from which you want to withdraw.

    Learn more about: How to select trade records.

  2. Right-click on the selected record and select the Event Append in the context menu, then choose Withdraw from Account in the dropdown list
  3. A dialog box will pop up:
  4. Type the information into the box:
    • There are two kinds of transactions in the dropdown list:  Deposit to Account and Withdraw from Account. The default Transaction depends on your location in the previous step.
    • Select the Transaction Date with your mouse or enter using your keyboard
    • Account is the account to which the selected record belongs .
    • Manually enter the amount you want to deposit. The Amount is equal to Base Amount.
    • The description of security is displayed in the Notes field automatically.
    • In the Event Include In Year field, you can activate the checkbox and enter the specific tax year  so that you can view this record in Baseline view of the specific financial year.
  5. After checking the information, click the OK button to continue the process. You will see the following grid:
  6. As you see from the picture, the new WithDraw record is generated automatically.

  7. You can cancel this action with the Undo Button in the trade tab.

Return of Capital


Return of capital (ROC) refers to payments back to “capital owners” (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business. The ROC effectively shrinks the firm’s equity in the same way that all distributions do. It is a transfer of value from the company to the owner. Since the ROC shrinks the business and represents a return of the investors’ own money, the ROC payment received may not be taxed as income. Instead it may reduce the cost base of the asset. This results in higher capital gains when the asset is sold, but defers tax.

With such a function,  Trademax makes it easier to better adjust the cost basis of the stock by that amount.

  1. Select the record to which you want to record Return of Capital

  2. Learn more about: How to select trade records.

  3. Right-click on the selected record and select the Event Append in the context menu, then choose Return of Capital in the dropdown list:
  4. A dialog box will pop up:
  5. Function
    Description
    1. Enter Transaction

    There are two options in the dropdown list:  Return of Capital and Div Paid on ShortSales. The default type depends on your choice in the previous step.

    2.Transaction Date The payment date when the company expects the capital payment process to complete. You can manually enter the date or choose from the dropdown calendar to set the Transaction Date.
    3. Event Date The recorded date when the company initiates the capital payments to shareholders of record. You can manually enter the date or choose from the dropdown calendar to set the Event Date.
    4.Account The account name to which the specific security belongs. Choose the specific account name from the accounts list.
    5.Security Name The name of the specific security
    6.Amount Manually enter the quantity of the capital
    7.Notes
    The description of the security is displayed automatically
  6. After checking the information, click the OK button to continue the process. You will see the following grid:
  7. As you can see from the above picture,, the new record is generated automatically.

  8. You can cancel this action with the Undo Button in the trade tab.

Div Paid on ShortSales


With the market as it is, many of you might decided to include shorting in your investment strategy. It’s quite possible that one of the companies that you shorted was one that pays a cash dividend. Since you are likely borrowing the shares that you initially sold to create your short position, you are required to reimburse the lender of the stock for the dividends that he missed. Your broker probably notified you of that fact, and reduced your cash position in your account by the amount of the dividend.

Just follow the step-by-step wizard to generate your Dividend Paid on Short Sales record

With such a function, Trademax make it easy to better adjust the cost basis of the stock by that amount.

  1. Select the record to which you want to make your Div Paid on ShortSales.l
  2. Right-click on the selected record and select the Event Append in the context menu, then choose Div paid on ShortSales in the dropdown list:
  3. A dialog box will pop up:
  4. Function
    Description
    1. Enter Transaction

    There are two options in the dropdown list:  Return of Capital and Div Paid on ShortSales. The default type depends on your choice in the previous step.

    2.Transaction Date The payment date is when the company expects the dividend  payment process to be completed. You can manually enter the date or choose from the dropdown calendar to set the Transaction Date.
    3. Event Date The recorded date when the company initiates the dividend payments to its shareholders of record. You can manually enter the date or choose from the dropdown calendar to set the Event Date.
    4.Account The account name to which the specific security belongs. Choose the specific account name from the accounts list.
    5.Security Name The name of the specific security
    6.Amount Manually enter the quantity of the capital
    7.Notes
    The description of the security is displayed automatically
  5. After checking the information, click on the OK button to continue the process. You will see the following grid:
  6. As you can see from the above picture, the new record is generated automatically.

  7. You can cancel this action with the Undo Button in the trade tab.

Supplemental Instructions : Let’s say you short 1000 shares of ABC Company on March. 1 at $10 a share. On Mar. 16th, your broker notifies you that your account will be reduced by $50 for the dividend paid by ABC Company to its shareholders. On April 10, you close your short position by buying 1000 shares of ABC at $8 a share. Since the short position was not open for at least 46 days, you cannot use the $50 in-lieu-of-dividend payment as a current expense. Rather, this $50 is added to the price of the stock that you purchased to close the position. In the example above, your net gain on your short position would be $150 ($1,0000-($8000+$50)=$150).

Let’s use the same example, but change the dates. Let’s say that you don’t close the short position until May 15. In this case, the in-lieu payment of $50 would be treated as investment interest, which is deductible on Schedule A (assuming that you itemize your deductions), and your gain on the closing of the short position would be $200.

Combine Trades


To avoid the wash sales in one day, TradeMax allows you to combine your trades with same buying slots (TradeDate, Action and Symbol are same).

The following figure provides you with a step-to-step wizard:

  1. Select the trades you want to combine(For example, the two trades occur in May 24, 2007)Learn more about: How to select trade records.
  2. Right-click on the selected section and select the Trade Combine in the context menu.
  3. The two records become one as in the following figure:
    Column Header Value
    Quantity Sum of all combined trades
    Price Weighted average sum of the combined trades
    Commission Sum of all combined trades
    Amount Sum of all combined trades
    Notes Note the action of combining

Match Trades


TradeMax uses strict “First In, First Out” (FIFO) trade matching as a default. It also provides the function which enables the user to discard FIFO trade matching. It will help you to avoid changing your long-term investment to short-term one.

The following figure provides you step-to-step wizard of trade matching:

For example, if you buy HPQ 1000 shares on January 13, 2008, and 500 shares on January 14, 2008. Then sell 400 shares on February 12, 2008. You will see these transactions as records in the data grid like this:

Note: The TradeMatch function is available only if the trade’s action is closed. For example, in January 13, 2008, you sell HQP to close the position.

  1. Double-click on the cell under the column TradeMatch at far right of the row 434(refer to the picture above), or just right-click the 434 record and select the TradeMatch from its context menu.You will get the following popup box:
    According to the “FIFO” rule, the share to sell must come from the transaction happened on January 13, 2008. But in this section, TradeMax provides you the “force-match” function using which you can sell the shares of stock bought on January 14, 2008.
  2. Enter the specific shares under the column Shares to sell in January 14, 2008 (In this example, we enter 400). Then click on the OK button to finish the process and you will see the TradeMatch amount in the data grid like this:
  3. You can cancel this action with the Undo Button in the trade tab.

Edit Symbol


To apply changes to all trade records with the same symbol, TradeMax provides users Edit Symbol function.

With this function, users can edit Symbol Name, Underlying Stock, Type, Rate, Strike Price, Expire Date, Exchange Market, Rates.

Edit Symbol in the Trade Data View

  1. Click the Trade Data view in the Account List to go to the Trade Data View
  2. Click the row header to select the specific trade record
  3. Right-click the record and select the Trade Adjustment>Edit Symbol in the context menu
  4. The following dialog box will pop up:Learn more about: Symbol box parameter
  5. Edit specific parameter in the box and click OK. Pop up the following confirm box:
  6. Click on Yes to apply change to all trades or No to change the selected one only.

Edit Symbol in the Symbols View

  1. Click Symbols view under the Account List to go to the Symbol View
  2. Click the parameter cell to activate it and then edit it with you keyboard and mouse
  3. Pop up the following confirm box
  4. Click Yes to apply change to all trade records with the same symbol or No to change the selected one only.

Consolidate Symbol


Consolidate symbol function helps you to consolidate different ticker symbol name.

Different symbol will occur: 1) Trade data from different brokerages; 2) Corporate Action like merge; 3) Manually append trade mistakes.

Consolidate Symbol name in the Trade Grid View

  1. Click the Trade Data view in the Account List to go to the Trade Data View
  2. Click the row header to select the specific trade record
  3. Right-click the record and select the Trade Adjustment>Consolidate Symbol in the context menu
  4. The following dialog box will pop up:
  5. Press OK to pop up the following confirm box:
  6. Click Yes to complete the process or No to cancel it.

Consolidate Symbol name in the Symbols View

  1. Click Symbols view under the Account List to go to the Symbol View
  2. Click the row header to select the specific trade record
  3. Right-click the record and select the Consolidate Symbol in the context menu
  4. A dialog box Consolidate Symbol will pop up
  5. Press OK to pop up the following confirm box:
  6. Click Yes to complete the process or No to cancel it.

Undo Trades Adjustment


Trade Max allows you to undo the last action and redo the previously undo action.

There are the following ways:

  1. Click the icon in the Quick Access Toolbar -OR-
  2. Click the Undo or Redo icon in the Trade Tab

    -OR-

  3. Right-click the data grid and select the trade undo or redo function from its context menu:

    -OR-

  4. Use the keybord shortcut to complete the job.
    Undo Undo the last action (Keyboard Shortcuts: CTRL +Z/ALT + Backspace)
    Redo Redo the previously undo action (Keyboard Shortcuts: CTRL +Y)

 

 

Move Up and Down


TradeMax allows you to adjust the sequence of the transaction records traded on the same day by moving up or moving down the transaction records.

  1. Select two transaction records you want to move.
  2. There are two ways to adjust the sequence of the records.
    • Click the UP or Down button in trade panel.
    • Right click the selected records, and then select Trade Adjustment>Move Up/ Move Down from context menu.
  3. The transaction records will be moved up or moved down.

Note:

1. If there are only two records traded on same day, the right menu only appears Move Down while Trade Panel only displays Down.

2. There are three or more transactions traded on same day.  The record which is located at neither the first nor the last can be moved up or down.

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