Handle your wash sales and generator your Schedule D

TradeMax provides you a powerful function to adjust your options .

• Option Assigned Option Assigned happens when short stock options positions opened by an options writer is assigned for fulfillment. The short options positions disappear and the options writer sells the underlying stock if call options were written or buys the underlying stock if put options were written. Assignment can happen randomly for short in the money options before expiration even though assignment is mandatory for short in the money options during options expiration in what is known as an Automatic Assignment. This tutorial shall cover the different options assignment issues that you might face in options trading.
• Option ExercisedSince all option contracts give the buyer the right to buy or sell a given stock at a set price (the strike price), when an option is exercised someone exercised their rights and you may be forced to buy the stock (the stock is put to you) at the PUT option strike price, or you may be forced to sell the stock (the stock is called away from you) at the CALL option strike price
• Option Expired For an option contract , expiration is the date on which the contract expires. The option holder must elect to exercise the option or allow it to expire worthless.

  Typically, option contracts expire according to a pre-determined calendar.

Note: You should select the specific option record first , the Option Adjustment option will appear in the list.

Baseline position is the holding open positon from the previous tax year.

If you are a new user of TradeMax and have hold open position from previous tax year, we recommend that you manually enter each position into TradeMax before you import the trade data of current year so as to match your trades between these two years perfectly. There are two steps to enter this position.

For example, you bought some stocks in 2009 and remained open at the year end, if you import trade data in 2010 without entering the open position carried from 2009, the trade data imported will be unmatched, even the generated reports and wash sale calculation will be inaccurate.

You can conclude a list of your open positions at year-end by checking your December monthly statement for the previous tax year. After that , you should enter these open position to TradeMax via two ways.

a. Click the specific Finance Year, then click Append button in Trade Panel.

b. Select the specific Finance year and click the Baseline View under the selected finance year.

NOTE: TradeMax supports entering previous year holding position after importing the trade data, but entering before importing is recommended.

The following will tell you how to enter previous year holding position in TradeMax:

1. Collect your open positions from the previous tax yearYou can collect the positions from your brokerage December statement.
2. Click the Baseline view under the Account List to go to the Baseline window. (For example, enter baseline positions of 2008)



3. Click Append button in Trade tab



4. A popup dialog box allows you to record the purchase of a security below: 
   

   Function	Description
   Enter Transaction	There are the following options from its dropdown list : Buy to Open — Buy Stock/Option to Open a Long position Sell to Close — Sell Stock/Option to Close a Long position Buy to Close — Buy Stock/Option to Close a Short position Sell to Open — Sell Stock/Option to Open a Short position Default value is : Buy to Open
   Transaction Date	Select the trade date
   Account	Select the account to append your trade.
   Orig Currency	Original Trade Currency type .There are seven Currency types in the dropdown list:USD, EUR,CAD,AUD,JPY,HKD,GBPIf you choose EUR,CAD,AUD,JPY,HKD,GBP as Orig Currency, the dailog box will appear an icon ,click this button, the dailogbox will extend.
   Security Name	Enter the security name manually in the Security Name filed or Select it from the Symbol dropdown list. Additionally, the entering process supports AutoComplete function which pops up a list of suggestions to the user based on the characters entered.
   Base Rate	Domestic currency type or accounting currency type for accounting purposes. Currently IB allows customer to choose different basis currency other than USD.
   Type	Specify The type of trade transaction. Available choice is:Stock/Option/Future.
   Number Of Shares	For Type of Stock, this field specify the number of shares been traded. For Type of Option, this field specify the hands of options been traded. Normally the value of 1 indicates the option of exercising 100 shares of Stock.
   Price (per share)	The transaction price of Stock/Option per share/unit.
   Rate	“Rate”related to derivative product like option, future. For instance, an option has a 100 “Rate” which means an option contract is for 100 shares of the underlying stock
   Underlying Stock	the stock on which an option is written, giving the option holder the right to buy or sell.
   Commission	Enter the commission of the shares. If left blank, the commission will be calculated from the value in the Amount column (providing the Amount includes commissions and fees).
   Amount	The “Amount” will ba calculated automatically since you enter the “Number of Shares”, “Price” , and “Commission”.
   Strike Price	The strike price of the underlying stock in the option or future
   Expire Date	the date an option or stock expires
   Notes	Enter the description of the transaction.
   Trade Include In Year	Select the checkbox to activate it and enter the specified tax year.
   Defercost	Used to enter the deferlose of this appending transaction.Display only if you choose W/L or W/S in the Enter Transaction field.
   	Click it to cancel the appending process.
   	Click it to enter another new transaction.
   	Click it to finish the appending process.

   Enter information of this transaction and press the button to finish the appending progress.

5. A new record will display at the bottom of Baseline window and the icon will become icon .
   Tips:
   • means there is no baseline position in the Baseline window
   • means there are baseline positions in the Baseline window.

Note:

• Since your held positions do not belong to the current tax year, you need to select the Trade Include In Year checkbox and enter the specific tax year.
• Please do not enter or import any closed positions from any year prior to the current tax year.
• This only needs to be done once for each brokerage account. Every year thereafter, you can use the function End Of Tax Year to copy your year-end open positions to your next tax year data file.
• If you have no open positions, you can skip this step.

To append a trade, please follow these steps:

Step 1: Run TradeMax and go to Account.

Step 2: There are 3 methods to append a trade:

a. Click Append button in Trade tab, then click Trade Append. A dialog box will pop up.

b. Right click on the trade window. A menu will pop up. e.g.: Choose Trade Append>Buy to Open (Open Long)

c. Click the Append button. A dialog box will pop up.

Step 3: The popup dialog box allows you to record the purchase of a security below:

Function	Description
Enter Transaction	Select Transaction Type. There are the following options from its dropdown list : Buy to Open -– Buy Stock/Option to Open a Long position Sell to Close -– Sell Stock/Option to Close a Long position Buy to Close -– Buy Stock/Option to Close a Short position Sell to Open -– Sell Stock/Option to Open a Short position Default value is : Buy to Open
Transaction Date	Select the trade date
Account	Select the account that you are purchasing shares for.
Security Name	Enter the security name manually in the Security Name filed or Select it from the Symbol drpdown list. Additionally, the entering process supports AutoComplete function which pops up a list of suggestions to the user based on the characters entered.
Type	Specify the Type of trade transaction. Available choice is: Stock/Option/Future.
Number Of Shares	For Type of Stock, this field specify the number of shares been traded. For Type of Option, this field specify the hands of options been traded. Normally the value of 1 indicates the option of exercising 100 shares of Stock.
Orig Currency	Original Trade Currency type. There are seven Currency types in the dropdown list: USD, EUR,CAD,AUD,JPY,HKD,GBP If you choose EUR,CAD,AUD,JPY,HKD,GBP as Orig Currency, the dailog box will appear an icon , click this button, the dailogbox will extend.
Base Currency	Domestic currency type or accounting currency type for accounting purposes. Currently IB allows customer to choose different basis currency other than USD.
USD Currency	Settlement currency for tax purposes.
Price (per share)	The transaction price of Stock/Option per share/unit.
Base Price	The share price at Base currency price.
USD Price	The share price at USD Currency price.
Rate	“Rate”related to derivative product like option, future. For instance, an option has a 100 “Rate” which means an option contract is for 100 shares of the underlying stock.
Base Rate	The exchange rate Original Currency/ Base Currency.
Selt Rate	The exchange rate Base Currency / USD Currency. Or directly query the Selt Rate in “Currency Exchange”.
USD Rate	The exchange rate Original Currency/ USD Currency.
Commission	Enter the commission of the shares. If left blank, the commission will be calculated from the value in the Amount column (providing the Amount includes commissions and fees).
Base Commission	Automatically calculate Base Commission by Commission* Base Rate.
USD Commission	Automatically calculate USD Commission by Base Commission* USD Rate.
Amount	The “Amount” will be calculated automatically since you enter the “Number of Shares”, “Price” , and “Commission”.
Base Amount	The “Base Amount” will be calculated automatically since you enter the“Base Rate”.
USD Amount	The “USD Amount“ will be calculated automatically since you enter the“USD Rate”.
Notes	Enter the description of the transaction.
Trade Include In Year	Select the checkbox to activate it and enter the specified tax year.
Deferred cost	If your position is a wash sales defer loss position, just enter your defer cost in Deferred Cost Field. Used to enter the deferloss of this appending transaction.
	Click thebutton to cancel the appending process.
	Click thebutton to enter another new transaction.
	Click thebutton to finish the appending process.
	Click thebutton to get more detailed trade transaction.

Step 4: Enter information of this transaction and press the button to finish the appending process.

Note:

When you input Previous Year Holding Position trade, you must activate Trade Include In Year [2008]. If your baseline is 2007, change the year to 2007.

If your position is a wash sales defer loss position, this is a special option of Open to Long (Open Long) or Sell to Close(Open Short) .

Every year there after, you can use End Of Tax Year function to generate your year-end open positions and defer loss to your next tax year data file.

To display your holding positions in a specific date:

1. Click My Holdings under the Account List
2. A Position box will pop up

   

3. Select your position holding date

   Learn more about: How to select a date

4. Click OK to display the holding positions

   
   
   The positions contains two parts: Open Position and WashSale Defer Position

   Learn more about: Open Long, Open Short

TradeMax allows you to edit your trade record by edit the parameter of the record. It is so easy just like you edit a record in other spreadsheet applications

With TradeMax, you can,

• Edit a specific trade record
• Edit multiple trade records at one time

Note: The multiple trade records should have the same editing parameter

Now we provide you a step by step wizard as follows:

• Edit a specific trade record

  1. Click trade record row heading to select the specific trade record
  2. Click the parameter cell to activate it and then edit it with you keyboard and mouse

  -OR-

  1. Click trade record row heading to select the specific trade record
  2. Press the Edit button in the Trade Tab or right-click the selected record and select the Trade Edit from its context menu
  3. A dialog box will popup:
  4. Edit the Parameter you want to change and press OK to complete the process

• 
  Edit multiple trade records at one time

  1. Select the records you want to edit in the Grid
     Learn more about: How to select trade records
  2. Press the Edit button in the Trade Tab or right-click the selected records and select the Trade Edit from its context menu
  3. A dialog box popup:
  4. Edit the Parameter you want to change and press OK to complete the process
  5. Then the multiple records will have the same edited Parameter

1. Select the records you want to delete in the Grid
   Learn more about: How to select trade records
2. Press the Delete button in the Trade Tab

   

-OR-
1. Select the records you want to edit in the Grid
   Learn more about: How to select trade records
2. Right-click the selected records and select the Trade Delete from its context menu

   

With TradeMax, you can find and display specific trade records:

• Display trade records within date range
• Display trade records by using the column header FilterAttention: Only those columns whose value is a string have a column header Filter.(for example, Symbol, Type, Action etc.)

To display trades within data range in data grid:

• Select the BeginDate/EndDate checkbox to activate this function
• Type in the begindate/enddate manually or select it from the dropdown list

Learn more about: how to select the date

To display trade records by using the column header Filter:

1. Click the icon next to the column header in the data grid (for example, column header Symbol)
2. A Filter popup box will appear:
   
   
3. Select the checkbox to select specific symbols. You can select the Select All checkbox to select or unselect all.
4. Click OK

After all trades executed during the tax year have been imported and matched correctly, you are ready to end of tax year for the next tax year.
With this function, you can check next tax year’s baseline position include year end open position and deferloss to each washsale position.

Let’s take the Tax year 2005 as an example. Please follow steps below to End the Tax Year:

1. Right-click the folder FY2005 under the specific account in the Account List and the following dialog box will pop up:You will see 2005 Year End Open Position & Deffer Loss.
2. Confirm your open position with your December statements from your brokerage.If there is any unmatched position, you can check these:
   • Make sure to take unsettled trades on the December brokerage statement into account.
   • Make sure to adjust for securities referring stock splits, mergers, spinoffs or symbol name changes.Stock Splits | Mergers | Spinoffs | Changing Symbols
   • If there is anything wrong when you match your specific transaction
3. Click on Next button and the New Year Baseline Position dialog box will show:
   The baseline position contains Open Position (long, short)

   Learn more about: Long, Sell to Open

4. Click Finish to complete the progress. Then next tax year’s baseline position and defercost will display in next tax year’s (In this example, it is tax year 2006) Baseline window and data grid as the following:After end of the tax year, you will see,
   • the next tax year Baseline view icon will become icon .
   • the Finance year view icon will become icon

   Tips: Finance year view Icon means you have already done End of Tax Year.

To export the trade data from TradeMax to TaxAct, there are two steps required:

Step 1: Export Trade Data from TradeMax

Step 2: Import Data into TaxAct Online Version

Follow the instructions below to export trade data from TradeMax then import the data into TaxAct.

Step 1: Export Trade Data from TradeMax

The following will show you how to export trade data from TradeMax:

1. Run TradeMax, Click the specific account and select the specific finance year.
2. Right click specific Finance Year (e.g. FY2009), a drop-down list pops up:
3. Select TaxAct Export option, a dialog box appears as below:
4. Save your data into specific directory.

Step 2: Import Data into TaxAct

Follow the steps below to import your TradeMax generated CSV file into TaxACT® Online version:

1. Log in your TaxACT® 2009 Online Deluxe account.
2. Select the Federal Q&A tab.



3. Select Gain or loss on the sale of investments from the Investment Income menu.
4. Select Import from a brokerage provider.
5. Click Import CSV File.



6. Click the Browse button and choose the CSV/XLS file you want to upload.
7. Click Continue to upload and import your trade data..
8. TaxACT® will require you to match the column header data in the file as shown in the images below. If the columns are perfectly matched, click Next.
9. TaxAct provides you with flexible choices to import the data, you can either tick the left check-box of Import to import all rows, or click the check-box of specific rows to import the rows you need.
10. Click OK when prompted.
11. Leave the top two rows unchecked, click Next to continue.Note: TaxACT® will now allow you to choose the owner of the data, ifnecessary. Click Next to continue.
12. TaxACT® will display all data found in the CSV file, click Import.
13. Click Close after your successful importing.
14. Click Income under the Federal Q&A tab to review the import result.