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From: GREHERT@xxxxxxx
Message-ID: <b1.1c79f55.25e14510@xxxxxxx>
Date: Sun, 20 Feb 2000 08:24:32 EST
Subject: RE: Taxes
To: realtraders@xxxxxxxxxxxxxxx
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I have some 10 pages of buys and 10 pages of sells from Brown & Co. What's
the best way to get this information to the IRS. What's required?
Last year I scanned all the pages into Excel and made a spreadsheet for my
accountant. The scanning was a huge hassle as the columns would usually not
line up so I had to cut and paste to make sense of it. Took too many hours
of my time.
I asked Brown & Co. for the data in electronic form -- and would gladly pay
for it -- but no luck. That's not their responsability.
Any ideas, shortcuts, recommendations would be greatly appreciated.
Jerry Rehert
I have spent many years filing tax returns for traders, and have found that
the IRS doesn't necessarily need or want all of your trades listed out, as
long as they have a summary which ties into the 1099B - gross proceeds figure
that the brokerage firm supplies to them. In fact, I have filed tax returns
where I have sent in 6 inches of brokerage statements attached to the tax
return which itemized a trade by trade recount of the annual activity. I have
been told by the IRS NOT to send all the trades, but rather to summarize
them. What I do now is tie in the gross proceeds to a summary of the trades
on either a monthly or quarterly basis, with a note telling them that the
statements are available upon request (I make sure to account for the wash
sales, short sales, options that may be omitted from gross proceeds, etc.)
The most important thing is to tie in the gross proceeds number from the
Scheduole D to the brokerage firm's 1099B.
Ted Tesser, CPA
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