Handle your wash sales and generator your Schedule D

This Section provides you with detailed instructions on each function within TradeMax.

1. Setup a New Account
2. Enter Previous Year Holding Positions
3. Import Trade History
4. Adjust Trades
5. Adjust Options
6. Add View
7. Backup & Restore
8. Run Reports
9. Print Setup
10. File Your Tax

TradeMax provides you a powerful function to adjust your trades

For example, companies may spinoff or merge. Brokers vary widely as to report it on their statements. It is impossible to automate the importing of these transactions in TradeMax, so manual adjustment is required by the user to account for the new stock.

1. Stock Split/Reverse split

TradeMax allows you to split your trades easily.

2. Stock MergeA merger is the combination of two or more corporations into one. Manual adjustment is required by the user to account for the new stock because the various brokerage statement.
3. Stock Spin offA corporate action in which a company’s existing shares are divided into multiple shares.
4. Inc-Income( Div, Int, etc)
   • You can achieve better control over your finances. The more TradeMax knows about the money you have coming in, the more accurately TradeMax can estimate what you’ll have left.
   • You can save time. TradeMax remembers the details of the deposits and other income you add here so you don’t need to reenter all of the same information each month.
   • You can get valuable tax information.
5. Reinvest-Income Reivested
   • It helps expand an individual investor’s portfolio,
   • It enables the investor to cross-reinvest income from any investment
6. Shares Added to AccountThere are times when you want to add shares of a security from an account without affecting your cash balance. For example, you may inherit shares or receive them as a gift. These transactions are different from Buys, and TradeMax provides you with such a function to better manage your portfolio.
   • The cost per share for inherited shares is generally the value of the shares on the date that the deceased died or on an alternative valuation date. When you receive the inherited shares, record the cost per share on that date
   • The cost per share for gift shares depends on the value of the shares on the date of the gift and the price that the giver paid for the shares, as well as your sale price if you sell the shares.
7. Shares Removed from AccountThere are times when you want to remove shares of a security from an account without affecting your cash balance. For example, if the security has been privatized, these transactions are different from Sells, and TradeMax provides you such a function to better manage your account.
8. Deposit into AccountDeposit is an umbrella term for any money you receive into any account you track in TradeMax. There are times when you want to deposit a sum of money to an account to better manage your transactions .
9. Withdraw from AccountThere are times when you want to withdraw a sum of money from an account to conduct other transactions. TradeMax provides you with such a function to better manage your portfolio.
10. Return of Capital

    Return of capital(ROC) refers to payments back to “capital owners” (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business. The ROC effectively shrinks the firm’s equity in the same way that all distributions do. It is a transfer of value from the company to the owner. Since the ROC shrinks the business and represents a return of the investors’ own money, the ROC payment received may not be taxed as income. Instead it may reduce the cost base of the asset. This results in higher capital gains when the asset is sold, but defers tax.

11. Div Paid on ShortSalesWith the market as it, many of you have decided to include shorting in your investment strategy. It’s quite possible that one of the companies that you shorted was one that pays a cash dividend. Since you are likely borrowing the shares that you initially sold to create your short position, you are required to reimburse the lender of the stock for the dividends that he missed. Your broker probably notified you of that fact, and reduced your cash position in your account by the amount of the dividend.
12. Combine Trades To avoid the wash sales in one day, TradeMax allows you to combine your trades with same buying slots (TradeDate, Action and Symbol are same).
13. Match Your TradesTradeMax uses strict “First In, First Out” (FIFO) trade matching as a default. It also provides the function enables the user to abandon FIFO trade matching and “force-match” specific trade transactions together into a tax lot. It will help you to avoid changing your long-term investment to short-term one.
14. Edit Symbol To apply changes to all trade records with the same symbol, TradeMax provides users Edit Symbol function.With this function, users can edit Symbol Name, Underlying Stock, Type, Rate, Strike Price, Expire Date, Exchange Market, Rates
15. Consolidate a Symbol Consolidate symbol function helps you to consolidate different ticker symbol name.

Different symbol will occur: 1) Trade data from different brokerages; 2) Corporate Action like merge; 3) Manually append trade mistakes.

16. Undo and Redo Action  

    Trade Max allows you to undo the last action and redo the previously undo action.

17. Move up and Move down  

    Trade Max allows you to adjust the sequence of the transaction records traded on the same day by moving up or moving down the transaction records.

TradeMax provides you a powerful way to combine different accounts. For example, it allows you to combine your accounts from different brokers and combine the accounts between you and your relatives only if you setup the accounts in TradeMax.

Let’s take an example to show you how to combine accounts:

You want to combine the account ScoreTrade Jones and SogoTrade Rachel in the Account List.

1. Right-click the item My Broker(s) in the Account List and select the Add View> Custom
   
   
2. A Dialog box pop-up:
   
   
3. Enter the name Jones & Rachel , use the Arrow button between the All account(s) list and the Select Account(s) list to select the combining accounts ScoreTrade Jones and SogoTrade Rachel into the Select Accounts box.
4. Click the OK button and you will get the new combined account Jones & Rachel under the Account List like the following:
   
   

To avoid the wash sales in one day, TradeMax allows you to combine your trades with same buying slots (TradeDate, Action and Symbol are same).

The following provides you a step-to-step wizard:

1. Select the trades you want to combine(For example, the two trades occur in May 24, 2007)Learn more about: How to select trade records.
2. Right-click the selected section and select the Trade Combine in the context menu.
3. The two records become to one as the following:
   

   Column Header	Value
   Quantity	Sum of all combined trades
   Price	Weighted average sum of the combined trades
   Commission	Sum of all combined trades
   Amount	Sum of all combined trades
   Notes	Note the action of combining