confused about sched D

I am confused about doing my Sched D (I use TT). I make about 150-200 stock/options trades each year. I log them on a spreadsheet. In many cases, I sell covered calls and the shares get called away. What I always do is reduce my cost by the option premiums.

When I did my taxes, I always wrote SEE ATTACHED and listed my total costs and total selling prices, and I would attach my spreadsheet. This year, the forms look confusing. All my trades are done via Ameritrade and I?m not sure the 1099B will match (depending on how they do the options).

Any advice on the simplest way to do this for 2011. The forms look so different.

Mel

Reply to
MZB
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Let me elaborate here. The 1099B will not be accurate (I just checked with Ameritrade). It will not include options and it will not adjust for the option premiums on stocks that are called away Also it will show some wash sales that really have no impact. (Those losses are then added to the repurchase shares' cost basis and then those shares are sold so there is no loss to disallow).

So, I guess my question is this: can I just do as I used to do? Say SEE ATTACHED and put the bottom line figures on to schedule D and attach the spreadsheet.

Mel

Reply to
MZB

Look at Pub 550. (You have a copy on your nighttable, right?)

"If a call you write is exercised and you sell the underlying stock, increase your amount realized on the sale of the stock by the amount you received for the call when figuring your gain or loss. The gain or loss is long term or short term depending on your holding period of the stock."

Reply to
JoeTaxpayer

As I said in the unmoderated group (by the way, it is annoying to have someone post messags to both the unmoderated and the moderated groups) the broker should furnish the 1099B in the same format as the 8949 and if not, will lose clients.

Your attachment should be in the format of the 8949.

Reply to
Arthur Kamlet

Art and Joe:

But the figures will be wr >>>>>>>>

We are not required to report gain/loss of exercise, close, and expiration of option contracts until the 1099s are sent for the 2013 tax year (February 2014) >>>>>>>>>>>>>.

What is that all about??

Very confusing.

Joe -- in my spreadsheet, I do adjust for the options premium when my stocks are assigned

Reply to
MZB

Welcome to the world of the 8949. Here is how I think it is supposed to work.

Let's assume you want to prepare a paper return and not have to enter all those transactions on the 8949 but would rather use your spreadsheet. Your spreadsheet must be in the format of the 8949. You would have to organize your spreadsheet so that you get transaction subtotals (where applicable) for Code A Short Term, Code A Long-Term; Code B Short Term, Code B Long Term; Code C Short Term, Code C Long Term.

For your Code A transactions where you don't agree with the basis, you enter the broker reported basis in Column f and enter your adjustment to the reported basis in Column g and enter the proper code explaining the adjustment in Column b. For your Code B transactions, there would not be any adjustment because you will be entering the basis in Column f. Ditto for the Code C transactions.

Once you have your spreadsheet subtotals you can enter those subtotals as single line entries on the matching A, B & C 8949s and carry the appropriate totals to the relevant parts of Schedule D. Mail the spreadsheet with the 8949.

If you plan on e-filing, then you must check the box that your software has typically displayed on the Schedule D that says you won't be electronically filing the 8949. This should trigger a Form 8453 with the last box on the page checked. You would then e-file your tax return and mail the 8453 with the 8949s with the single line entries and the spreadsheet supporting the 8949s to a unique address in Austin that is on the back side of the paper 8453. I am not privy to all software, but somewhere in completing the 8949 or the Schedule D or possibly the 8453, you will have the opportunity to tell the program not to e-file the 8949s.

Reply to
Alan

The broker certainly has the information needed to properly report the underlying stock and exercised option together, using form

8949 and the column b code and the column g adjustment amount.

For 2011 they don't have to, but are allowed to.

Either push to see if the broker has a secret 1099B which reports the transaction properly, or adjust your spreadsheet to handle this corectly.

Sch D software for years have handled wash sale corrections correctly, and my MorganStanley SmithBarney broker properly handles sales of the undrlying stock where option exercise is part of the transaction.

So what will they do? Will TD Amerirade's third party reporting vendor properly report this?

Yes, and your speadsheet should handle this and the 8949 anticipated this as well.

Reply to
Arthur Kamlet

I use software to verify my 1099 B numbers. Last year even my covered securities were reported incorrectly. I wont trust anything that comes from the brokers anymore. I either calculate it all by hand or use Netbasis.

========================================= MODERATOR'S COMMENT: In future messages please trim!

Reply to
melissasachet

I use software to verify my 1099 B numbers. Last year even my covered securities were reported incorrectly. I wont trust anything that comes from the brokers anymore. I either calculate it all by hand or use Netbasis.

======= MODERATOR'S COMMENT: In future messages please trim! ======= TD Ameritrade is among the brokers that permit downloading of their trades directly into certain tax software. If your preparer or you have such compatible software, then you should probably use this feature.

Reply to
D. Stussy

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