amount |Form 8949 Capital Gain & Wash Sales calculator software

Transaction Amount Tolerance Value Warning Message

Transaction Amount Tolerance Value You can enter a transaction tolerance value to allow transactions to exceed amount within certain tolerances.TradeMax completes the calculation using the formula : Amount = Price * Quantity + Commision , if the abs(Amount – Price * Quantity – Commision)>tolerance value, trademax will display a warning message.
If you recieve a “Tolerance Warning” in TradeMax, Click the Tolerance Warning Records in the information bar andTradeMax Data gird will move automatically to the warning records
In TradeMax
buy amount = qty* price +commission +fee
sale amount = qty*price  – commission – fee

This warning implies that Quantitty, Price, Commission, Fee and Amount Datafields have some problems like a hidden fee not being listed in the trade data csv file.

This problem can be viewed in the warning records

TradeMax has a default tolerance value of 0.5.

In some cases, Microsoft Excel’s column number format might trigger this warning.

Consider this record #1505.

6-15-2011 Sell 700 VXX BARCLAYS BANK IPATH NEW IPATH S&P 500 VIX SHORT 24.50 $17,141.14 $2.56

Excel displays the first two digits after the decimal point under default settings.
Similarly, If the actual price is 24.491 and TradeMax is set to use xls API to import the data by default, TradeMax will read the value as 24.50.

The number of places after the decimal point can be adjusted in the Excel “Price” column format which will change it to  the first three digits after the decimal point.

Excel can format numbers any way required using the “Format Cell” feature. Select the cell with the number to be formatted and press CTRL+1 (or right mouse click > format cells) to go to the Number tab in the dialog box. Select “Number” category and change 2 digits to 3 digits. This will force Excel will show the correct value.

Once saved, the excel file can then be used to import correct datafields to TradeMax again.

Stock Split

Stock Split

A stock split is one of  corporate actions that happens when a company changes the amounts of shares and adjusts the share’s price accordingly. A stock split  increases or decreases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur.

For example, a company with 100 shares of stock priced at $20 per share. The market capitalization is 50 × $20, or $1000. The company splits its stock 2-for-1. There are now 100 shares of stock and each shareholder holds twice as many shares. The price of each share is adjusted to $10. The market capitalization is 100 × $10 = $1000, the same as before the split.

Stock splits are usually non-taxable. It is important to note that after a stock split, the number of shares you own in the security and the cost basis of those shares will change. Often stock splits are expressed as a fraction.  A two-for-one stock split is the most common – the investor receives one additional share for every share owned in the security.

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