Handle your wash sales and generator your Schedule D

As a general rule, you determine whether you have short-term or long-term capital gain or loss on a short sale by the amount of time you actually hold the property eventually delivered to the lender to close the short sale.

in US,Under the marked to market system, 60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss. This is true regardless of how long you actually held the property.

Section 1256 Contracts Marked to Market

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 or TradeLog 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.