Action |Form 8949 Capital Gain & Wash Sales calculator software

Corporate Action


Corporate Action

Stock Splits, dividends, mergers, acquisitions and spinoffs are all examples of corporate actions. For example, a company may decide to split its shares 2:1, leaving shareholders with twice as many shares as they had before. In many cases, a corporate action will result in a new position or a change to the cost basis of the security.

As a result, investors should make necessary cost basis adjustments for each security. With thousands of corporate events that affect a stock’s cost basis, the odds are good that an investor will encounter one sooner or later. some corporate actions are easy to manage, while some need more manual calculations. As every corporate action type has its own rules, the investors must learn if they want to fill their Schedule D forms accurately.

Wash sale activity can further complicate the arduous task of tracking and adjusting for corporate actions. TradeMax’s wash sale algorithms are synchronized with corporate action activity to alleviate this problem.

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

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

    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

    Black List


    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.  

    3. 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.
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