Enter Baseline Position |Form 8949 Capital Gain & Wash Sales calculator software

Enter Previous Year Holding Positions


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 the current year so as to match your trades between these two years perfectly. There are two steps to entering this position details.

For example, suppose 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 over from 2009, the trade data imported will be unmatched, even the generated reports and wash sale calculations 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 positions to TradeMax in either of 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 can choose EUR,CAD,AUD,JPY,HKD,GBP as Original Currency, and the dialog box will appear as an icon ,click this button, the dialog box will extend.
    Security Name
    Enter the security name manually in the Security Name field 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 choices are: Stock/Option/Future.
    Number Of Shares
    For every Type of Stock, this field specifies the number of shares that have been traded. For Type of Option, this field specifies the hands of options that have 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 defer loss of this appending transaction.
    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 be displayed 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.

Append a Trade


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 field or Select it from the Symbol dropdown list.

    Additionally, the entering process supports AutoComplete function which, leads to  pop ups of a list of suggestions to the user based on the characters entered.

    Type Specify the Type of trade transaction. Available choices are: 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 theBase Rate”.
    USD Amount The “USD Amount will be calculated automatically when 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.

Display Holding Positions


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

Select Trades


You can quickly select your cells, trades in TradeMax data grid just like you do in other spreadsheet applications

To select Do this
A single cell Click the cell, or use the arrow keys to move the highlight to  the cell  your choice.
A single trade record Click the trade record row heading (row heading: The yellow gray area to the left of each trade record row)
Contiguous Trade Records Drag across the trade record row headings. Or select the first trade record row; then hold down SHIFT and select the last trade record row.
Non-contiguous Trade Records Select the first trade record row; then hold down CTRL and select the other trade record rows.
All Trade Records Select the first trade record row; then hold down SHIFT and select the last trade record row at the bottom of the data grid.

Edit Trades


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

With TradeMax, you can,

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

Delete Trades


If you find duplicated records in the data grid, TradeMax allows you to delete them with just a few clicks, as follows:

  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

Find Trades


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

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

End of Tax Year


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 & Defer Loss.
  2. Confirm your open position with your December statements from your brokerage.If there is any unmatched position, you can check these:
  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.

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