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 How to report profit/losses of Stocks to IRS?
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Posted on 02-18-10 5:13 PM     Reply [Subscribe]
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Hi guys, I am ready to file tax for last year, but thing is I traded stocks, but lost some of it, another word I didn’t make any profit.


My broker company has sent me an online statement, it has more than hundred transaction which I made.


Now, I am doing turbo tax, it has a box (7) says enter company name, but I have more than 30 companies name, how to type all companies name in the box??

Need help plz
 
Posted on 02-18-10 5:19 PM     Reply [Subscribe]
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Schedule D:  Each line for each company.  if you traded 30 times, enter 30 trades .. one on each line.  There is a supplemental form for sch D, if the sch D does not have 30 lines to fill out. 


http://www.irs.gov/pub/irs-pdf/f1040sd.pdf


http://www.irs.gov/pub/irs-pdf/f1040sd1.pdf


 
Posted on 02-18-10 5:22 PM     Reply [Subscribe]
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Also, Turbo tax is very smart software.  Just follow the instruction .. keep on typing company name, date aquired, sold, amounts etc .. Turbbox tax fillout data itself for you on Sch d.
 
Posted on 02-18-10 5:22 PM     Reply [Subscribe]
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Last edited: 18-Feb-10 05:27 PM

 
Posted on 02-18-10 6:14 PM     Reply [Subscribe]
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You also have to account for wash sale (loss on stock). If you are using turbo tax, I am not sure if it does that automatically.
 
Posted on 02-18-10 6:52 PM     Reply [Subscribe]
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you need to provide date of purchase and date of sales of the equities that you traded. And if any of them you held for longer than a year than you'll have a cheaper tax as oppose to less then 1 year.

Date of Purchase and Sales,


 
Posted on 02-18-10 7:27 PM     Reply [Subscribe]
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the maximum loss you can deduct in any given year is limited to $3000. However, you can carry forward those losses for the future years and deduct not exceeding 3k each year. I have not used TurboTax lately but there should be a way to type more than one stock/company in there. Look for add function in there.


 
Posted on 02-18-10 7:54 PM     Reply [Subscribe]
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hey guys,


suppose i invested 5000 dollars and i lost 1000 in last year and i still have 4000 in my stocks, do i need to file this information in tax?  since i did nt make any money, can i just skip reporting this part or like someone mentioned above i can get credit for the loss of 1000 dollars? 


 
Posted on 02-18-10 8:01 PM     Reply [Subscribe]
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IT APPEARS YOU HAVE NOT SOLD STOCK TO REALIZE THE LOSS YET.  AM I RIGHT?  as long as you have not sold in a loss, you do not have to report - you can not take credit for the loss.  if you have sold in a loss, YOU MUST report to the IRS.
 
Posted on 02-18-10 8:37 PM     Reply [Subscribe]
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If you really had a loss on the stocks you sold, you can definitely deduct upto $3k of the loss and carry forward the loss for coming years. However, if the loss was due to market fluctuation on the unsold stock, you can not deduct those losses since you have not realized those losses. Let me know if I answered your question.
 
Posted on 02-18-10 8:37 PM     Reply [Subscribe]
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i bought and sold many times last year, however, i never transferred money from stock account to my bank account.  I gained sometime and i lost sometime, and it is still a loss for me.  I probably had made many transactions.  am i suppose to report all the transactions made?  what if i dont when i lost money? 
 
Posted on 02-18-10 8:48 PM     Reply [Subscribe]
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ok, here is the thing:


I bought and sold stocks many times last year.  I made profits and I has losses.  By the end of the year, it was loss.  So, basically i lost certain amount from last year however, i still own those stocks.  The stock value is now less than what i invested.  In such case, do i need to report the transactions i made during last year even though i still own stocks in loss and never transferred money to my bank account?  worse part is, i already filed tax.  :(


 
Posted on 02-18-10 9:46 PM     Reply [Subscribe]
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Yes; you should report those stocks that you sold - not the ones that you are still holding. If it was a net loss on all those transactions (for sold stocks), you get to deduct a net loss of upto $3000. However, if you sold the stocks  and bought the same stock within 31 day period, that particular stock transaction is regarded as wash sale and the loss is not allowed to deduct. In normal situations, you will be eligible to deduct $3000 of loss from your income.

Wash sale situation explanation: For example you sold Citi Bank 1000 shares on 08/01/2009 and bought the Citi 1000 shares on 08/25/2009, and if you had a loss on the sale of 08/01 stock, such loss is not allowed since it is regarded as a wash sale. It is regarded as though you never sold that Citi 1000 shares and you still hold it. IRS thinks that you sold those 1000 shares to report a loss when in fact you are still owning the same 1000 Citi shares. However, if the purchase is after 31 days, you can still report the loss on the sale of the stocks. If you are dealing with several purchases and sales of same company stocks, then you do need to consider the wash sale factor.

 
नगनाउने गु
Posted on 02-19-10 8:41 AM     Reply [Subscribe]
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I am in the exact same situation as AAAA. I bought and sold stocks many times last year. Sometimes the same stock within 31 days sometime different stock. I never withdrew any money from my stock account to my bank account. Overall I had a loss (very minimal). Lets say I started with $5000 and  the balance on my portfolio at the end of the year was $4500.


Now my question to the tax experts here is:


If I don't want to deduct the loss ($500), can I file my 2009 Tax without even mentioning this stock thing? Will IRS question me why I did not include my loss?


Serious answers only, please.


 


 
Posted on 02-19-10 9:20 AM     Reply [Subscribe]
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Elixir,

I loss 2000 in stocks but I did not know I could deduct this amount. I have already filed Tax using turbotax for 2009. Is it possible to deduct this amount next year I file?

 
Posted on 02-19-10 9:29 AM     Reply [Subscribe]
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IRS will be reported of all your stock sell transactions. Usually IRS is interested to see if you made a profit and did not report  it. If you are at a net loss and did not report it, IRS will not penalize you for sure. However, why do you want to give up an opportunity to save tax. If your tax bracket is 25%, you can save $125 on your tax.

The other thing I want to address is your net profit or loss on stock transaction in 2009 is determined by analyzing only the sales transactions you did in 2009. All you have to do is selling price - cost price and add 'em together.
Don't worry about the market value of the stocks at year end. If you don't understand this explanation, then go get a CPA's help.

 
Posted on 02-19-10 9:47 AM     Reply [Subscribe]
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Hi Elixir,

Appreciate  for your prompt reply. I have already filed my taxes . So, how can I report my loss. Isn't is possible to report this loss next year I file.

 
नगनाउने गु
Posted on 02-19-10 10:01 AM     Reply [Subscribe]
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Hi Elixir,


Thank you for your suggestions. Yes I know I could save around $125 if I show the loss. But I am too lazy to go back and enter all the (probalby more than 100 transactions) sales of my stock. I hope the IRS won't mind me not reporting the loss.


 
Posted on 02-19-10 10:43 AM     Reply [Subscribe]
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Spur,


You can file an amended return 1040X, if you would like to which can be done right away. It's better to utilize this year since there is a limitation as to how much you can deduct each year. for example, if you happen to have a net loss of 6000 next year, your limit to deduct is 3k. In that case, you can deduct 3k next year and 3k following year. Therefore, I would recommend to file an amended return for 2009. However, theoritically you should be able to report this loss next year too since these losses can be carried forward.


 


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