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Jerry,... For what it is worth,...here is what I do.
1. Gather 1099's,...identify PROCEEDS,...total procedes reported to the IRS.
2. Using a Lotus 1-2-3 spreadsheet which mirrors the columns on Sched D...
columns from left to right:
Description....Date aquired...Date Sold,...Sales Price..Cost...Loss
...Gain
3. From 1099's enter all Sales Proceeds,...as well as trade date of Sale.
Getting these amounts exact is MOST IMPORTANT,...as I have been told the
very first thing the IRS checks is to see if Sales Proceeds reported
match up
with what was reported to them.
4. Then I enter Purchase Date and Purchase Cost,...including dividends
rec'd,..etc as part of cost basis. The spread sheet does the
calculating part, and enters the appropriate Gain or Loss in the
two righthand spreadsheet columns . If there are two or three pages to
the spreadsheet,...I simlply enter the totals from each page onto the
Sched D with a note....Refer to Attached Schedule of .....etc.
Getting the Sales Proceeds and Dates of Sale entered is the most tedious
part,..
as once that is complete,..you have a template in place for the remaining
info
that is required. It is alot easier if all your trades are Short Term,...vs
a mix of
Short Term and Long Term. If so,..I would do separate spreadsheets,...one for
Short Term trades,..the other for Long Term Trades.
Again,..in my mind the single most important thing through this process is to
get the 1099 PROCEEDS From Sales accurate,...fully making sure that what
you report is exactly what wa reported to the IRS. Hope this helps.
I am not an accountant,..nor am I affiliated with anyone who is an
accountant.Ha. JIM Pilliod
P.S. As an aside,...one thing I also do,...with two custodial accounts for
my children,...I seeded the accounts with the same dollar amount and trade
both accounts exactly the same,...simplifies Sched D reporting process.
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