Run Reports |Form 8949 Capital Gain & Wash Sales calculator software

Mark to Market Detail Report


Mark to Market Detail Report -This report is for those users  want to record the price or value of a security, portfolio on a daily basis to calculate gains and losses or to confirm that margin requirement are met.

Mark-to-market (MTM) accounting enables a trading business to change the tax status of their earnings from capital gains/losses to ordinary income/losses, thereby avoiding the $3,000 capital loss limitation and the wash sale rule.

The following will tell you how to run a Mark to Market Detail Report

  1. Click the item Mark to Market Detail Report, you will get the following window:
  2. After you press Download button, the price of the holding securities at the end of specific finance year will be downloaded. (For example: we choose the transaction data in FY2007, TradeMax downloads the price of the holding securities on last day of FY2007.)

  3. After downloading the price of the holding security, Mark to Market Detail Report is generated as below:
    Basic Function
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total
    2

    Display the detailed information for all transactions in the current account and current period under Mark to Market Accounting method.

    3 Display the Mark to Market Detail Report Actual Gain & Loss Amount

    The following grid give a detailed introduction about the report .

    Function

    Description
    1.Symbol

    The security name

    2.Open Date The purchase date of the security
    3.Action Action name in TradeMax
    4.Quantity The shares of security you purchase
    5.Open Price The original security price
    6.Close Date The date when you sold the security, if you haven’t sold the security before the end of specific year, Trademax will treated it as the last day of the year for the transaction is under Mark-to-Market method.
    7.Close Price The security price on Close Date
    8.Acquired Amount The Amount auto-calculated by Quantity of the security* Open Price
    9.Sold Amount The Amount auto-calculated by Quantity of the security* Close Price
    10.Gain & Lose
    The Amount auto-calculated by Sold Amount – Acquired Amount

     

Mark to Market for Form 4797


Mark to Market for Form 4797 Report -This report is for traders in stocks, options and single-stock futures who elect mark-to-market accounting to report their trading activity on Form 4797

If a trader previously made the mark-to-market election,A trader may make an election under section 475(f) to report all gains and losses from securities held in connection with a trading business as ordinary income (or loss), including those from securities held at the end of the year. Securities held at the end of the year are “marked to market” by treating them as if they were sold (and reacquired) for fair market value on the last business day of the year. Generally, the election must be made by the due date (not including extensions) of the tax return for the year prior to the year for which the election becomes effective.

The report should be printed and attached to the official IRS Form 4797 for tax filing.

Securities or Commodities Held by a Trader Who Made a Mark-To-Market Election should fill out Form 4797 Line 10 :

  • Report on line 10 all gains and losses from sales and dispositions of securities or commodities held in connection with your trading business, including gains and losses from marking to market securities and commodities held at the end of the tax year
  • Attach to your tax return a statement, using the same format as line 10, showing the details of each transaction. Separately show and identify securities or commodities held and marked to market at the end of the year. On line 10, enter “Trader—see attached” in column (a) and the totals from the statement in columns (d), (f), and (g).

The following wizard will show you how to run a Mark to Market for Form 4797 Report.

  1. Click the item Mark to Market for Form 4797, you will get the following window:
  2. After you press Download button, the price of the holding securities at the end of specific finance year will be downloaded. (For example: we choose the transaction data in FY2007, TradeMax downloads the price of the holding securities on last day of FY2007.)

  3. After downloading the price of the holding security, Mark to Market for Form 4797 Report is generated as below:
    Basic Function
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total
    2

    Display the descriptions and gain and loss for all transactions in the current account and current period under Mark to Market accounting method.

    3 Display the Mark to Market for Form 4797 Report Total Amount of Acquired amount, Cost or other basis, and Gain & Lose.

    The following grid give a detailed introduction about the report .

    Function

    Description
    a).Description of Property

    The information of the security

    b).Acquire Date The purchase date of the security
    c). Sold Date The date you sold the security, if you haven’t sold the security before the end of specific year, Trademax will treated it as the last day of the year for the transaction is under Mark-to-Market methods.
    d).Acquired Amt( Amount) The Amount auto-calculated by the Quantity of the security* Original price
    f).Cost or Other Basis The Amount auto-calculated by the Quantity of the security* Price on Sold sate
    g). Gain/Lose The Amount auto-calculated by Cost or Other Basis – Acquired Amt

Trade Detail Report


Trade Detail Report – A report display all trade detail. This report lists each and every transaction as displayed in the grid. Additionally, the profit or loss can be grouped by ID, Symbol, or TradeDate.

Now, we will show you how to run a Trade Detail Report:

  1. Click the item Trade Detail Report, you will get the following
  2. You can group it buy different column header by choosing specific one in the Subtotel Field.

Cost Basis Transaction Report


Cost Basis Transaction Report -This report is for those users who track the cost basis in stocks, bonds and mutual funds to report a cost basis when an investment is sold.

Cost Basis, also known as “tax basis”, refers to what you paid for any investment which include commissions or the original value of an asset for tax purpose (usually the purchase price). Cost basis can be adjusted for stock splits, dividends and return of capital distributions, wash sale, and used to decide the capital gain, which can be got by subtracting the cost basis and current market value.

The following will tell you how to run a Cost Basis Transaction Report

    Click the item Cost Basis Transaction Report, you will get the following report window:

    Basic Function
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total
    2

    Display the cost basis details for all transactions in the current account and current period.

    3 Display the total USD Amount

    The following grid give a detailed introduction about the report .

    Function
    Description
    1.Trade Time

    The transaction date of the security

    2.Action Action name of the trade
    3.Description The information of the trade
    4.USD Price The share price at USD Currency price
    5.USD Amount Auto-Calculated by USD Price* Qty(Quantity)
    6.Qty( Quantity) The quantity of security you purchase
    7.Hold Qty ( Hold Quantity) The quantity of holding security
    8. Cost
    Aggregate Amount of USD Amount

Realized Gain/Loss Report


Realized Gain/Loss Report -This report is for those users who require trade transaction detail. Such as Security, Quality, open price, Open date, Open Commission, close price, close commission, sales price, cost basic, Actual gain &lose for each transaction. Moreover, it can be grouped by ID, Symbol or Date.

    Click the item Transaction Report, you will get the following report window:

    Basic Function
    1 Shows all of the open positions in the current account
    2

    Display the details for all transactions in the current account and current period. You can group it buy different column header by choosing specific one in the Subtotel Field.

    3 Display the Actual Gain & Lose Amount

Daily Market Value Report


Daily Market Value Report – This report is for those users who track the performance and market value of the securities on daily basis in specific finance year. The report will show the portfolio of every transaction on daily basis.  Before you run this report, you should download the price history of the securities in specific finance year. Otherwise, the data in this report isn’t accurate enough.

Daily Market Value is the relative market value of a security is simply equal to the aggregate market value of the security divided by the sum of the aggregate market values of all securities.

The following will tell you how to run a Daily Market Value Report

    Click the item Daily Market Value Report, you will get the following report window: 

    Basic Function
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total
    2

    Display market value details for all transactions in the current account on daily basis

    3 The chart display the day balance and cash balance

    The following grid give a detailed introduction about the report .

    Function
    Description
    1.Trade Time

    The transaction date of the security

    2.Portfolio Value Portfolio Value is a portfolio consisting of all securities where the proportion invested in each security correspons to its relative market value
    3. Available Funds Funds that are available to an account holder for withdrawal or other use.
    4.Total Market Value The Amount auto-calculated by Portfolio Value + Available funds

Sect.1256 Report


Section 1256 Report -This report is for those users who want to get the information of Unrealized Gain/Loss amount and 60% long term amount and 40% short term amount auto-calculated by TradeMax as an attachment to Section 1256 contract,

Definition of Section 1256 contracts Any of several types of futures and options contracts that are subject to a special tax rule of the Internal Revenue Service. Named for a section of the IRS Code, these contracts must generally be treated as if they are sold at fair market value on the last business day of the tax year. Section 1256 contracts include regulated futures contracts, foreign currency contracts, non equity options, dealer equity options, and dealer securities futures contracts.

General rule

For purposes of this subtitle—

  • Each section 1256 contract held by the taxpayer at the close of the taxable year shall be treated as sold for its fair market value on the last business day of such taxable year (and any gain or loss shall be taken into account for the taxable year),
  • Proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account by reason of paragraph (1),
  • Any gain or loss with respect to a section 1256 contract shall be treated as—
  • (A) Short-term capital gain or loss, to the extent of 40 percent of such gain or loss

    (B) Long-term capital gain or loss, to the extent of 60 percent of such gain or loss

  • If all the offsetting positions making up any straddle consist of section 1256 contracts to which this section applies (and such straddle is not part of a larger straddle), sections 1092 and 263 (g) shall not apply with respect to such straddle.

The following will tell you how to run a Sect.1256 Report.

  1. Select the item Sect.1256 Report, you will get the following window:
  2. 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 influence the market price of the generated report .

  3. 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.

  • After downloading the price of the holding security, Unrealized Gain/Loss Report is generated as below:
  • Basic Function
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total
    2

    Display market value, unrealized gains/losses, the percentage of gains for all transactions in the current account and current period.

    3 Display the unrealized Gain& loss total amount, 60% long term amount, 40% short term amount.

    The following grid give a detailed introduction about the report .

    Function
    Description
    1.Symbol

    The security name

    2.Open Date The purchase date of the security
    3.Action Action name of the trade
    4.Qty( Quantity) The quantity of security you purchase
    5.O-Price The original security price
    6.Open Amount The amount auto-calculated by O-Price*Qty(Quantity)
    7. Market Price The price of specific day you selected to download in Price window
    8. Market Value The amount auto-calculated by Market Price* Qty(Quantity)
    9.Gain/Lose The amount auto-calculated by Market Value-Open Amount
    10. Gain %
    The percentage auto-calculated by Gain&lose/ Open Amount

    Wash Sale Detail Report


    Wash Sale Detail Report– If you wish to analyze your disallowed wash sale losses that have been deferred to next year, you may run this report. It will show you the baseline position contains open position and Wash sales defer position.

      Click the item Wash Sale Detail Report and you will get the following report preview:

      Basic Function
      Short Term Capital Gain Display all short term baseline position contains open position and Wash sales defer position.
      Long Term Capital Gain Display all long term baseline position contains open position and Wash sales defer position.
      Total Amount The actual Capital Gain amount in the current account. It contains the Short Term Capital Gain Total and Long Term Capital Gain Total.

      Note: With using the Rounding method, it could be error within 0.01.

      Total Wash Sales Defer to Next Year Display the amount of wash sales deferred to next year

    Unrealized Gain/Loss Report


    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
    2. 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 .

    3. After you selected the Position Holding Date, the following window will display :
    4. The window will display the holding security, click Download Button to download the price on specific day you selected in previous step.

    5. After downloading the price of the holding security, Unrealized Gain/Loss Report is generated as below:
    Basic Functions
    1 Report data information including Data Source, Create Date, Tax Payer and Page of Total
    2

    Display the unrealized gain or loss for all transactions in the current account and current period.

    3 Display the Unrealized Gain/Loss Total Amount

    The following grid give a detailed introduction about the report .

    Function
    Description
    1.Symbol

    The security name

    2.Open Date The purchase date of the security
    3.Action Action name of the trade
    4.Qty( Quantity) The quantity of security you purchase
    5.O-Price The original security price
    6.Open Amount The amount auto-calculated by O-Price*Qty(Quantity)
    7. Market Price The price of specific day you selected to download in Price window
    8. Market Value The amount auto-calculated by Market Price* Qty(Quantity)
    9.Gain/Lose The amount auto-calculated by Market Value-Open Amount
    10. Gain %
    The percentage auto-calculated by Gain&lose/ Open Amount

    Wash Sales Calculation Rule


    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:

    Function
    Description
    1.Washsale After clicking Options button, you should select Washsale tab.
    2.SIS Calculation Rule Slider You can move the slider to select a SIS rule for washsales calculation.
    3.SIS Rule for washsales Calculation Description Field According to different washsale calculation method and calculation difficulty level, the following calculation rule with eight different levels summarizes when a wash sale will be triggered under different methods.

    • None: -Do Not Apply Wash Sales Rule
    • Low—stock with the same expiration and strike price
    • Medium Low—stock with same underlying
    • Medium–stock with same underlying
    • -Buy any call option (or SSF) of the same equity/stock when buy stock at a loss

    • Medium High -stock with same underlying
    • -Buy any call option (or SSF) of the same equity/stock when buy stock at a loss

      -Short deep In-The-Money put option of the same equity/stock when sell stock at a loss

      *  Any expiration that is deep in the money

    • Default– stock with same underlying
    • -Buy any call option (or SSF) of the same equity/stock when buy stock or call option at a loss

      -Call option(ssf) can defer loss to call option(ssf) with same underlying

      -Short any put option of the same equity/stock when buy stock at a loss

      -Put option(ssf) can defer loss to put option(ssf) with same underlying

    • High—  washsale between same underlying Securities with same action.
    • Option can only defer loss to any option

    • Accept All-washsale between same underlying Securities with same action.
    • option can defer loss to stock

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