Handle your wash sales and generator your Schedule D

You can not only print the appropriate TradeMax G&L report and mai it as a attachment, but also can export your TradeMax gains and losses to popular tax software programs with the TXF Export function.

In this section, we will show you how to print your report and export your TXF files.

• Print and mail your IRS tax forms

  In the Description of Property column on your IRS Schedule D (for cash basis accounting), write “See attached report”. Then simply copy the totals from your TradeMax IRS Schedule D-1 report to the appropriate section on the schedule.

• Export your Gains & Losses to popular tax software with TXF Export.

  TXF File Export is a report type which allows importing your TradeMax gains and losses into popular tax software.

• Export your trade data to TaxAct.

  Export trade data to TaxAct will show you how to export trade data from TradeMax and import your TradeMax generated CSV file into TaxACT® Online version.

The following will provide you a step to step wizard to show you how to export your TXF file with the TXF Export:

For example, you want to export the FY2008’s G & L Report to TXF file, you can do the following:

1. Right click the folder FY2008 under the Trade Bar and select the TXF Export from its context menu:

   

2. Following dialog box will pop up:
3. Select the path to save your TXF file.
4. Press Save button to finish the process. Now you can find your TXF file in your selected path.

Unrealized Gain/Loss Report -This report is for those users who  want to get the information of Gain/Loss when the price of the securities decrease or increase after buying, but he or she has yet to sell it.

Gains or losses are said to be “realized” when a security is sold. In general, Capital gains are taxed only when they are realized. Unrealized gains and losses are also called “paper” profits or losses, which implies that the gain/loss is only real “on paper.” This may be true from a tax perspective, but remember that a loss is a loss, whether it’s been realized or not.

The following will tell you how to run an Unrealized Gain/Loss Report.

1. Select the item Unrealized Gain/Loss Report, you will get the following window



The default date is the last day of specific finance year. You can set the date or just click OK Button, the date you selected will determine the market price of the generated report .

2. After you selected the Position Holding Date, the following window will display :



The window will display the holding security, click Download Button to download the price on specific day you selected in previous step.

3. After downloading the price of the holding security, Unrealized Gain/Loss Report is generated as below:

The following grid give a detailed introduction about the report .

To download data file from Vanguard:

1. Go to the Vanguard web site and log in to your account.
2. Click on My Portfolio, Accounts & Activity.
3. Click on the Download transactions link at the upper right corner of the page.
4. Select a From and To date range for your report.

5. Under Choose account(s), it will display all your accounts, you just need to select the account you need.

   Note: Please do not select more than one account.

6. Click the Download spreadsheet link at the bottom of the page.

7. Save the CSV file to your specific folder.

   Please do NOT open the csv file with Excel. Opening the csv file and then saving it will change the original format of the data file.

8. Run TradeMax to import trade activity data from local file.

IRS pulication 550 define Wash Sale as follow:

A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:

• Buy substantially identical stock or securities,
• Acquire substantially identical stock or securities in a fully taxable trade,
• Acquire a contract or option to buy substantially identical stock or securities, or
• Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA.

If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale.

If your loss was disallowed because of the wash sale rules, add the disallowed loss to the cost of the new stock or securities (except in (4) above). The result is your basis in the new stock or securities. This adjustment postpones the loss deduction until the disposition of the new stock or securities. Your holding period for the new stock or securities begins on the same day as the holding period of the stock or securities sold.

Example 1.

You buy 100 shares of ABC stock for $1,000. You sell these shares for $750 and within 30 days from the sale you buy 100 shares of the same stock for $800. Because you bought substantially identical stock, you cannot deduct your loss of $250 on the sale. However, you add the disallowed loss of $250 to the cost of the new stock, $800, to obtain your basis in the new stock, which is $1,050.

The defination of Substantially Identical Security ( hereinafter refrrer to as SIS) rule by IRS is so complicated and vague that some special cases can not get a certain and autorative explanation. But which does not mean we can ignore the IRS SIS rule especially relating to option trading when a wash sale is deemed obvious.
A wash sale occurs when you sell a security at a loss but then repurchase it within 30 days at the low price. For tax purposes, capital losses are disallowed or postponed under these circumstances. Special tax rules apply.

TradeMax provides you with calculation rule for your transactions.

1. Click main button , and a main menu opens:



2. Click Options button, and then select Washsale tab,  the following dialog box displays:

There are two processes involved in using TaxACT® to file your trading gains and losses with TradeMax:

Step 1 : Export Trade Data from TradeMax

Step 2: Import Data into TaxAct

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 specifc account and select the specific finance year.
2. Right click specific Fiance Year (e.g FY2009), a dropdown list pops up:

   

3. Select TaxAct Export option, a dailog 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. Open your web browser and navigate to your TaxACT® 2010 Online Deluxe account.
2. From the Q&A main menu, select the Federal Q&A tab.
3. Expand the Investment Income menu option, then select Gain or loss on the sale of investments.
4. Select Import from a brokerage provider  via a CSV file option.

   

5. Click on Import CSV File.



6. Click the Browse button.

   

7. Navigate to and select the appropriate CSV file you saved in your computer.
8. Next click Continue to begin upload and import process.
9. TaxACT® will attempt to indentify the column header data in the file as shown in the images below. Make sure that the header data is identified correclty, the click Next.

   

10. Next TaxACT® will prompt you to select which rows of data will be imported. By clicking the check box at the top of the Import column you can select all rows - typically the easiest method.

    

11. Click OK when prompted.

    

12. Now you will need to un-select the top two rows, and bottom two rows as shown in the images below. Then click Next to continue.

    

    Note: TaxACT® will now allow you to chose the owner of the data, if neccesary. Click Next to continue.

13. TaxACT® will list all data found in the CSV file, click Import to complete the data import.
14. Click Close when finished.

    

15. To review the import result click on Income under the Federal Q&A tab.
16. The total listed under Capital Gains & Losses should reflect the total gain or loss reflected in TradeMax (in addition to any other capital gains or losses you have already entered into TaxACT). Once you complete your online filing you can confirm your short-term and long-term capital gains and losses on the Schedule D form.

In order to simplify the process to run reports, TradeMax provides you with Black List to filter some information of various reports. With this feature, you can choose to display the information you want by selecting transaction type or Security Ticker to generate the specific report.

 The following wizard will tell you how to build a Black List.

1. Click main button , and a main menu opens:



 

2. Click Options button, and then select Black List tab,  the following dialog box displays:

Function	Description
1.Black List Tab	After clicking Options button, you should select Black List tab.
2.Filter Field	You can select the report you will run from the dropdown list.
3. Type	Security type. For instance, stocks and mutual funds, options on stocks, Single-Stock-Futures, futures, currencies etc.
4. Ticker	Security Ticker Symbol. You can click Ticker Tab to select the symbol you want to be displayed or disappeared in the generated report.
5.Ticker Tpye List	The ticker types for you to select to display in the reports you want to run . Note : If you click Ticker Tab, the list box is called Ticker List.
6.Black List Field	Tthe ticker types you want to omit in your report.
7.Condition Field	Click to move the selected items to Ticker Type List or Black list alternatively.Click to move all items to Ticker Type List or Black List.

To download data file from UNX:

1. Log into your UNX account..

    

2. Set a Start and End date range for your report. 
3. Select the Comma Delimited File (CSV) option.

    

4. Click the download button.

    

5. Run TradeMax to import trade activity data from local file.

To download data file from Zecco:

1. Log in to your Zecco brokerage account.
2. Click Account Records in the Trading menu , then click Investment Data Download.
3. Set a specific data range, then click Download to Quicken.

 

4. Save the QFX file.
5. Run TradeMax to import trade activity data from local file.

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.