Tax Questions

[LovePennyStock]

Thanks, bud. So it seems my long-term capital gains rate should be 15% for 2010.

[LovePennyStock]

Can anyone help me figure out my situation?
My Income Tax Rate changed from 15% to 25% during 2010, if I sold some stock during 2010 before my income tax rate changed for Long-term Capital Gains, how does IRS calculate my tax? should my Long-term Capital Gains Tax Rate be 0% or 15% based on the current tax policy
Thanks a lot.

[Ichauway]

Yea,I'm. Pulling my hair out about now.

[sidedraft]

You pay tax on profit only, even if you purchase stock with that profit. In otherwords, even if the profit never leaves your account, you owe taxes on that profit.

Look this over:

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

It gets filed with your 1040. Taxes are due 4/15.

[NastyNasdaq]

Tax question. I was wondering if someone would could help me with this? I'm a novice investor so please bear with me. I understand the idea of Short-Term and Long-Term gains.

Let's say I put $1,000 into a stock and short-term within say 3 months I sell my shares for a total of $2,000, which equals a $1,000 profit. Am I taxed on the total $2,000 I receive after the sale or just the $1,000 profit I made? And now would $2,000 go towards my yearly taxable income or just the $1,000 brought back in profit?

One more question that might seem very dumb,but how does one go about paying their owed taxes on capital gains? Is it a yearly thing like tax returns, that say I have to put the money side each time and wait to send it in, or does it work in another fashion?

Basically would that money due for taxes already have been taking out of my proceeds from the transaction, and then at the end of the year I could file for a return, say like with federal income tax withheld on a paycheck? Or do I personally receive all the money without being taxed at the time and then set money due for tax aside from the proceeds and then must pay the IRS?

Thank you very much for any help.

[toniehock]

I did notice that gainskeeper thing on zecco, and wasn't quite sure what it did, or how necessary it was. Thanks for clearing that up!

[toniehock]

Thank you very kindly, sir!
All of this info was exactly what I needed to know :D

[steel_curtain]

You're broker will provide you with the necessary tax forms at the end of the year. You'll receive a 1099-B for sure, and a 1099-DIV and/or 1099-INT. You'll use those forms to fill out your schedule D and B if you earned interest or divy's.

Some tax software allows you to import your trade info into it, but requires a specific format. Usually either CSV or TXF. You'll need to see what options your broker offers for exporting the reports, and find tax software that uses that format.

Another option is to sign up with http://www.gainskeeper.com/ and they store all your trade data for taxes and generate your Schedule D for you.

A last resort is filling out the Schedule D by hand, but if you have hundreds or thousands of trades you DO NOT want to do that.

Hope that helps...

[bkbirge]

Zecco will give you the info but unless you sign up for their Gainstracker service you won't be able to automatically download it into your tax program, you'll have to read through all the "my account" records. In fact this year even though I have Gainstracker, I'm having issues with it so I'll probably just parse through my statements manually again. It can be a major pain when you have lots of trades.

[toniehock]

Taxes -- Thinking ahead to next year.

Hi, I am completely new to trading, and will start putting money in the market next week.
I will probably be doing a few trades a week, and perhaps some day trading here and there on pennies.

To make tax season easier on myself next year, what are some things that I can start doing now?

Should I keep a log of trades by hand, or will my broker (zecco) provide all of the necessary information at the end of the year?
Should I buy myself a tax program (if so, which)?
Should I get an accountant?

Any advice would be greatly appreciated,
Thank you

[Mr. Shagala]

You would have to mail it in.

[thirdflat]

ok, here's one for you...can you E-file a *2008* Individual 1040 today (3/15/10) or do you have to mail it?

[Mr. Shagala]

C'mon..............NO TAX QUESTIONS? Its tax time! Someone has to have a question?

[Mr. Shagala]

LOL! There is absolutely no action here. Not even during tax time (now!)

[PDC ™]

resigning as mod. someone who cares take control please

[NYBob]

New anti-tax coalition established -
By Personal Liberty News Desk • Apr 22nd, 2009 •
Category: Asset and Wealth Protection,
Personal Liberty News

New anti-tax coalition established A new coalition called Citizens Against Net Taxes (CANT) aims to bring consumers, industry leaders and nonprofit organizations together to protest against new taxes on digital goods and services downloaded to PCs or mobile devices.

CANT launched its campaign on Monday and has an online petition which can be signed on its website.

"States are facing a real budget crisis, but legislatures must carefully evaluate the consequences of any legislation that will raise tax rates on consumers," says Larry Darby of the American Consumer Institute.

"While taxes on digital goods may appear to be an easy way to generate revenue, in reality they will work at cross purposes with efforts to stimulate the economy and protect jobs," he adds.

In urging taxpayers to sign the petition, CANT says states that impose taxes on digital goods can expect online retailers move to states with lower or no taxes.

The taxes are also likely to raise online-theft rates as consumers turn to tax-free and illegally downloadable materials, it states.

Finally, it believes the added taxes threaten to limit the use of high-speed broadband and wireless services that could help lower energy costs and further stimulate the economy.
ADNFCR-1961-ID-19134874-ADNFCR
Related Posts

* Mount Redoubt eruption provides lessons in survival
* Vitamin C may prevent some types of arthritis
* Increase Oxygen By Increasing Your pH Levels
* Dan Fuss to investors: Buy bonds
* Kerry: Government-sanctioned torture weakened America

http://www.personalliberty.com/news/new-anti-tax-coalition-established-19134874/

We Want America Back -

God Bless us
Amen

[NYBob]

Bailout Indignation - by RALPH NADER -
How about a test of your injustice barometer?

You might think that the reckless, avaricious, giant corporations, having shrunk the economy, cost millions of jobs and then demanded that taxpayers be dunned for years into the future for multi-trillion dollar bailouts, would show contrition, regret, or self-restraint of their power over Washington.

Forget it. They’re baaack! Their greed and power are revving up big time to bring Washington and you the taxpayer, you the parent, you the consumer, you the worker, to your knees.
Here is a sample of the appalling dynamics of corporate greed and continuing over-reach each day in your nation’s capital.

1. Just when people thought the taxpayer-subsidized corporate student loan racket was ended by the Democrats, Sallie Mae, its cohorts and lobbyists, like Jamie S. Gorelick of FannieMae notoriety, are descending on Congress. The non-partisan Congressional Budget Office concluded that replacing these subsidized loans with direct Department of Education lending will save $94 billion over the next ten years.

It is long overdue to end this gouging, college payola giving, obscenely overcompensated industry, and give students an efficient and reasonable lending system. Still, Sallie Mae, Citigroup, Bank of America and others are swarming over Congress to retain a big piece of the action. “Why do we even need private lenders?” correctly asks Congressman Timothy H. Bishop, a former provost of Southampton College.

2. ABC News reports that banks are hiking already high credit card rates and other bank-related fees: “The Banks have been given billions of dollars of tax money and only lend it out if customers are willing to pay extortion rights,” said Tony Cesnik, a Concord, California, resident. Cesnik adds: “The banks need a legal spanking. They are acting like spoiled brats!” Elizabeth Warren, Harvard law professor and chair of the Congressional Oversight Panel agrees: “We’re asking taxpayers to pay twice.”

3. The big oil and gas companies are saturating the airwaves with ads warning about the Obama Administration’s alleged desire to tax them $400 billion. This will cost jobs and reduce the discovery of more oil and gas, they say. Where is this $400 billion figure from? Obama’s ambition is not much beyond repealing the tax breaks George W. Bush gave his oily friends for drilling in the Gulf of Mexico when oil was selling at less than $40 per barrel. Some of the oil industry’s own spokespersons admitted last year that their argument doesn’t hold water any more with such high oil prices and profits since then.

So what are the big oil corporations like Exxon doing with their excess profits that totaled a record $45 billion just for Exxon last year? They’re not even drilling on two-thirds of the acreage they have rights to explore. Instead Exxon is spending $35 billion to buy back its stock and hold in cash. When the next oil shock comes, Exxon will demand more tax breaks and other dispensations to fund its drilling. We’ve seen that game played out before at the gas pump.

4. Now comes Newsweek’s Michael Hirsh to report a private meeting recently between six senators and Obama in the White House where the president heard complaints that his proposed regulatory reforms were too weak and were being devised by his appointed officials who were part of the problem in Wall Street. Well, are you surprised that a new powerful lobby created by the likes of Citigroup, JPMorgan, and Goldman Sachs is gearing up to stop adequate regulation of “over the counter” derivatives, to keep these transactions secret, and to continue to permit what Hirsh called the “systemic risk that led to the crash.” This brazen move by the incorrigible banks is underway after they received huge bailout money from Washington. Beware they may yet demand and receive another big bundle.

5. With workers losing millions of jobs, the U.S. Chamber of Commerce, the National Association of Manufacturers, and virtually the entire business juggernaut are amassing tens of millions of dollars to stop the union-facilitating “card-check” legislation and any effort to bring the federal minimum wage up to what is was back in 1968, no less, adjusted for inflation. It is now about three dollars short of that modest goal for hard-pressed laborers, many without health insurance.

6. And oh, how these company bosses are fighting to keep their big bonuses going as a reward for tanking many of their own companies. Call it hubris, arrogance, disdain for common decencies of the American people, it all reflects too much corporate power over our lives—a judgment over 75 percent of Americans share.

ex.
http://tinyurl.com/cor596

All this lobbying of Congress and the White House year after year pays off. A study by three Kansas University professors found that a single tax break in 2004 earned drug, manufacturing, and other companies $220 for every dollar they spent in their cash register politicking. Presently, Lockheed Martin is spending millions of our taxpayer dollars to oppose Obama, Defense Secretary Robert Gates, and many other defense experts who want to finally shut down the price-skyrocketing F-22 fighter extravaganza designed for combat in the Soviet Union-era.

So, are you more upset than when you started reading this column? Feel frustrated and powerless? With your friends, ask your Senators and Congressperson during their frequent recesses for a three-hour public accountability session. If you can assemble 300 or more residents, after you rev up your community, you’re likely to have your elected representatives come to an auditorium where you live and work. If they think 500 people will show up, it is even more likely. Especially if you are organized and tell them this is just the beginning. Just the beginning!

Without the rumble from the people back home, a majority of the 535 members of Congress will continue to kowtow to about 1500 corporations and you’ll pay the price again and again. So, rumble, rumble, rumble!

http://www.nader.org/index.php?/archives/2112-Bailout-Indignation.html

http://www.nader.org/

Taxpayers, Where Is Your Money Going?

http://investorshub.advfn.com/boards/board.aspx?board_id=3626

http://www.theforbiddenknowledge.com/hardtruth/con_camps.htm

http://theburningplatform.com/groups/taxes/discussions/video-taxpayers-where-is-your-money-going

http://www.theforbiddenknowledge.com/hardtruth/wake_up_america.html

http://infowars.net/articles/april2009/210409Paul.htm

Pacific Grove California Explores Bankruptcy Over Pension Issues

http://globaleconomicanalysis.blogspot.com/2009/04/pacific-grove-california-explores.html

God Bless us

[NYBob]

End the Income Tax, Abolish the IRS -

By tmartin • April 15, 2009

http://www.ronpaul.com/2009-04-15/end-the-income-tax-abolish-the-irs/

Ron Paul supports the elimination of the income tax and the Internal Revenue Service (IRS). He asserts that Congress had no power to impose a direct income tax and has called for the repeal of the 16th Amendment to the Constitution, which was ratified on February 3, 1913.

An income tax is the most degrading and totalitarian of all possible taxes. Its implementation wrongly suggests that the government owns the lives and labor of the citizens it is supposed to represent. Tellingly, “a heavy progressive or graduated income tax” is Plank #2 of the Communist Manifesto, which was written by Karl Marx and Friedrich Engels and first published in 1848.

To provide funding for the federal government, Ron Paul supports excise taxes, non-protectionist tariffs, massive cuts in spending.

Ron Paul discusses the income tax and the “FAIR Tax” in May 2007:

http://investorshub.advfn.com/boards/board.aspx?board_id=3626

[NYBob]

Fast Facts: How the Obama/Pelosi/Reid Budget hurts taxpayers, job creators, and the American family -

http://www.atr.org/fast-facts-obama-pelosi-reid-budget-a3072

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36829403

[NYBob]

Russia's Medvedev Calls a Spade a Spade: "Comrade" Obama -

http://www.atr.org/russias-medvedev-calls-spade-comrade-obama-a3092



http://www.atr.org/index.php?content=home

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36829403

--

Audit the Fed bills in the Senate: Contact your senators!
Posted April 3rd, 2009 by BmoreBrawler

http://www.dailypaul.com/node/88601

S.604

Title: A bill to amend title 31, United States Code, to reform
the manner in which the Board of Governors of the Federal
Reserve System is audited by the Comptroller General of
the United States and the manner in which such audits
are reported, and for other purposes.

Sponsor: Sen Sanders, Bernard [VT]

Cosponsors (None)

http://thomas.loc.gov/cgi-bin/bdquery/D?d111:24:./temp/~bdLRHv::|/bss/111search.html|

and

S.513
Title: A bill to require the Board of Governors of the Federal
Reserve System to publish information on financial assistance
provided to various entities, and for other purposes.

Sponsor: Sen Sanders, Bernard [VT]

2 Co-sponsors:

Sen Feingold, Russell D. [WI] - 3/5/2009
Sen Lincoln, Blanche L. [AR] - 3/5/2009

http://thomas.loc.gov/cgi-bin/bdquery/D?d111:23:./temp/~bdLRHv::|/bss/111search.html|

Go Bernie go!
http://www.dailypaul.com/node/88601

"the foxes and the coyotes are arguing about how to fix the hen house"

Fed - elitez pawnz 666bolshevikz us-sr circuz -

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36778335

[NYBob]

Russia's Medvedev Calls a Spade a Spade: "Comrade" Obama -

http://www.atr.org/russias-medvedev-calls-spade-comrade-obama-a3092



http://www.atr.org/index.php?content=home

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36829403

[NYBob]

Enemies of Swiss banking secrecy have more muscle -
14 minutes ago
By ALEXANDER G. HIGGINS
Associated Press Writer

(AP:GENEVA) Swiss banks have long irked German and French tax collectors. The latest battle is nothing new, except Switzerland's big neighbors now have the backing of even bigger powers _ the United States and China _ in the fight against tax havens.

The Swiss, stung that the Group of 20 summit of rich and developing countries included them on a watchlist of tax havens, are nonetheless confident they can meet the demands of powerful nations and still hang onto their famed banking secrecy more or less intact.

Some analysts are not so sure.

Swiss banks were slower to develop than the big lending institutions in Italy and other European countries, but by the early 1700s a dozen Geneva families had launched themselves into the business and started lending huge sums to the various war efforts of France's Louis XIV.

Some of the money was coming in directly from wealthy French families who had deposited funds in Geneva banks to evade taxes at home. Authorities in Paris caught some, but by far not all.

Although Swiss banking secrecy had been in effect already, it only became law in Switzerland in 1934, during the midst of the Great Depression.

France and Germany were stepping up their espionage to catch tax evaders, and the Swiss passed a law making it a crime punishable by jail and a fine for any bank official to divulge client information.

Historians now discredit the legend that bank secrecy was implemented to protect Jews being persecuted by the Nazis, but a major study found many Holocaust victims nonetheless benefited.

In one case a Credit Suisse employee in Basel gave the Nazi authorities information on 74 clients, who could have faced the death penalty in Germany for depositing assets abroad. The ethnicity and fate of the account holders is unknown, but a Swiss military tribunal in 1943 sentenced the bank employee to life imprisonment for breaking customer confidentiality.

Now Germany and France, as well as the United States, are hot on Switzerland's case again as part of their effort to shut down tax evasion. With the support of the other G-20 countries, they had lists drawn up of tax havens and threatened to impose sanctions unless they received requested information on foreign account holders.

The Swiss and most of the other countries on the "white," "gray" and "black" lists _ ranging from cooperative to uncooperative _ had already started moving toward compliance with the G-20 demands, which had been well-signaled in advance.

French President Nicolas Sarkozy said when the lists were announced, "I say to my Swiss friends: it's not up to me to make the classifications. Switzerland, you are on the gray list because you have announced an intention and if you keep to it you will rise to the white list and if you don't, you'll move to the black list."

Swiss President Hans-Rudolf Merz said Friday that negotiations on the treaties needed to implement the change could begin next week. The United States and Japan are expected to be first.

"However, it would be impossible" to meet the G-20's target of 12 treaties to be concluded by next November, in part because of the need to submit major treaties to national referendum under Switzerland's cherished direct democracy.

James Nason, spokesman for the Swiss Bankers Association, said Switzerland had already been cooperating with other countries in fighting money laundering and organized crime and it is now a new area _ tax evasion _ that is being added.

"If a country comes along with a well-founded suspicion about an identifiable person and a bank, the Swiss will accept that. What they won't accept is what we've always called 'fishing expeditions,'" such as asking whether a specific individual has an account in Switzerland.

"That's not good enough," said Nason. "Something must have happened. There must be concrete evidence or strong well-founded suspicions of concrete wrongdoing."

"Why on earth should states have the right of forced entry into your bank account just on the off chance of finding a little bit of tax evasion," he said.

Other small European nations with a tradition of banking secrecy were also bridling at being included on the "gray list" of countries that had yet to prove they will comply.

Luxembourg Prime Minister Jean-Claude Juncker told reporters that the four countries _ also including Austria, Belgium and Switzerland _ were angry that despite being members, the Organization of Economic Cooperation and Development that drew up the list "didn't bother to contact" them.

Pascal Gentinetta, director of the Swiss business organization economiesuisse, said the lists were a "power play" of the G-20.

"We learned with the greatest concern and astonishment that the United States and the United Kingdom were not on the lists although their trusts and similar products fail to meet international standards in the fight against money laundering."

China managed to have Hong Kong and Macau put in a footnote rather than anywhere on the list, Gentinetta said.

"Overall, it seems that small countries are punished while big political and economic powers like the United States remain untouchable," said Nicolas Michellod, a senior analyst at Celent, referring to some U.S. states such as Delaware which can be considered to be tax havens. "In time of crisis, the law of the strongest prevails."

Michellod said he expects major changes won't be seen for one or two year, but that "I would expect real change to occur in 3-5 years" after the treaty changes take effect.

"Swiss banks are recognized as having very good service," Michellod said. "It's a moment of truth now. We will have to see whether the great service they provide is enough to put them above the competition.

Daniel J. Mitchell, senior fellow at the free market Cato Institute in Washington, D.C., described the G-20 agreement as "a sad day for freedom."

"Politicians in high-tax nations want to collect more tax revenue, but the campaign of fiscal imperialism against so-called tax havens will not achieve this goal.

"Taxpayers always figure out ways of dodging confiscatory tax rates."

____

Associated Press Writers Frank Jordans in Geneva and Balz Bruppacher in Bern, and AP Business Writer Aoife White in Prague, Czech Republic, contributed to this report.
--

this sounds interesting. maybe put drug lords in their place finally.
by mick thanks.
--

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36036508
--

Audit the Fed bills in the Senate: Contact your senators!
Posted April 3rd, 2009 by BmoreBrawler

http://www.dailypaul.com/node/88601

S.604

Title: A bill to amend title 31, United States Code, to reform
the manner in which the Board of Governors of the Federal
Reserve System is audited by the Comptroller General of
the United States and the manner in which such audits
are reported, and for other purposes.

Sponsor: Sen Sanders, Bernard [VT]

Cosponsors (None)

http://thomas.loc.gov/cgi-bin/bdquery/D?d111:24:./temp/~bdLRHv::|/bss/111search.html|

and

S.513
Title: A bill to require the Board of Governors of the Federal
Reserve System to publish information on financial assistance
provided to various entities, and for other purposes.

Sponsor: Sen Sanders, Bernard [VT]

2 Co-sponsors:

Sen Feingold, Russell D. [WI] - 3/5/2009
Sen Lincoln, Blanche L. [AR] - 3/5/2009

http://thomas.loc.gov/cgi-bin/bdquery/D?d111:23:./temp/~bdLRHv::|/bss/111search.html|

Go Bernie go!
http://www.dailypaul.com/node/88601

"the foxes and the coyotes are arguing about how to fix the hen house"

Fed - elitez pawnz 666bolshevikz us-sr circuz -

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36778335

[Mr. Shagala]

Thanks.

[Dspetry]

Wow! I guess you can't have any form of income at all while on unemployment benefits.

You can, it'll just be deducted from the amount you receive in UI benefits.

IE - You get $500/week from Unemployment.

You claim $200 in Stock earnings...

Your payment would be reduced to $300.

Of course, someone correct me if i'm wrong. I did stay at a Holiday Inn Express last night though

[Mr. Shagala]

Wow! I guess you can't have any form of income at all while on unemployment benefits.

[drummerking]

After further research one who collects unemployment and makes money in the stockmarket has to repay the unemployment funds, as this would equate to fraud if they didn't. I'm sure the government will catch up to them sooner or later.JMO!

[drummerking]

How will the money someone makes in the stock market affect a person who is collecting unenemployment funds?

TIA.........

[pennierookie]

thanx generic I appreciate the answer and links

[Stock]

short term capital gains

Federal: taxed at your normal income rate, whatever that is.

Mass:

I'm not an expert, but it appears that you would pay at whatever rate your state decides, as well, just like Federal.

Schedule B , Interest, Dividends and Certain Capital Gains and Losses
http://www.mass.gov/Ador/docs/dor/Forms/IncTax08/f1_nrpypdfs/sch%20b.pdf

http://www.mass.gov/?pageID=dorterminal&L=7&L0=Home&L1=Individuals+and+Families&L2=Personal+Income+Tax&L3=Forms+%26+Publications&L4=Forms+Index&L5=Forms+by+Year&L6=Income+Tax+Forms+and+Schedules&sid=Ador&b=terminalcontent&f=dor_forms_inctax08_inctax08&csid=Ador

Suggestion: Move to a state like Texas with no personal income taxes.

[pennierookie]

hello board... can anyone tell me what the capital gains tax is short term in MA. thanx

[Mr. Shagala]

Almost tax season again. I'm gonna be claiming a lot of losses this year. LOL. Who else?

[Mr. Shagala]

what sucks is that you can only write off $3k per year. At that rate, I'm going to be claiming for the next 16 years.

[thirdflat]

I hear ya!! heh heh - and 2008 I moved to 90% big-board plays and arrrrggghhh as well! 2009 will be good to me, I hope! :)

[BullNBear52]

Don't worry about the audit. They'll be laughing about the penny stocks you're trading. j/k.

[thirdflat]

While doing this (i.e. breaking up a 500,000 share trade into 90,000 segments) I feel like I'm on a one-way ticket ride to an audit! :) darn Turbo Tax! I heard that a lot of people just upload an Excel spreadsheet into Turbo Tax and it makes the job of dealing with penny stocks much easier. I wonder if anyone has a "template" I can look at to see how the Excel sheet should look??

[BullNBear52]

Yup. You should be all right because the info that your broker sends in will tie to the return.

[thirdflat]

I think I was late on the Nascar picks - totally slipped my mind! Thanks for the tax help...much appreciated! I ran into another dilemna: Turbo Tax has a limit on how many shares you can enter as a transaction - 99,999.99 - what BS! I guess I just need to split them up?

[BullNBear52]

I believe you need to list the trades separately using the old symbol and new symbol for the sale on the loss trade.

ABC	296.44 
 ABC	619.84 
 gain	323.4 
 	 
 XYZ	553.72 
 XYZ/def	112.64 
 Loss	-441.08 
 net loss	-117.68 
 

Now how about your Nascar picks. lol.

[thirdflat]

Hi Everyone,
I have a Turbo Tax question here, and I was hoping someone could help...
I imported my Scottrade data into Turbo Tax Premier, however I'm having a little trouble deciding how to handle the following scenario:

4/24/07 Purchased XYZ - 9600 shares: $296.44
4/25/07 Sold XYZ - 9000 shares: $619.84
5/1/07 Purchased XYZ - 6800 shares: $553.72
then a reverse split occurred (new symbol ABC and left w/ 185 shares)
6/21/07 Sold ABC - 185 shares: $112.64

total loss: <$117.68>

Unfortunately, the data imported from Scottrade shows the 2 different symbol numbers and sell profits from each. Can I just manually adjust one of the 2 investment entries to show the $117.68 loss and delete the other investment entry completely? What is the proper way to handle this is Turbo Tax Premier?

Thanks for your help!

[PDC ™]

can only offset 3k a year.

[MisterBet]

Thanks. Can you offset last years market losses with this years market gains. Example lost 20g last year and gained 20g this year?

[Mr. Shagala]

Yes, w/ some exceptions (like the wash rule). However, be advised you can only claim 3K in CL per year.

[MisterBet]

Can you put the monies you gained on self employment against the money you lost on stocks. Example: John Doe made 5 thousand on various jobs and lost five thousand in the market. Do they offset each other?

[Mr. Shagala]

Everyone done w/ their taxes? I sold no positions in 2007 so I guess I won't have any hair pulling this tax season.

However, there is a stock that tanked badly, but I haven't sold any of it. Looks like I'm gonna be out of 15K on that one.

So I can only claim 3K losses per year? Which means I keep claiming losses for the next 5 years?

[PCola77]

Quick tax question: In one of my accounts I bought a bunch of big% dividend stocks (i.e., ones that paid cash divi's of say, half the share price), and then subsequently sold the stock for more than (Prior price - Divi Amount), so I made some profit on them.

So my account basically looks like this:

1099-Div $25,000
1099-B G/L -$22,000

So basically I made $3,000 on those trades, but Tax Cut is treating it as $25,000 divi profit and a $3,000 cap loss. My guess is that that is the proper way to treat it, and I'll have $19,000 of cap losses to net against some gains (hopefully) over the next few years. Is that right, or should I only be paying taxes on the $3,000 gain?

Much thanks in advance!

[was pennytrader]

I had one error pop up when I did mine, because I made a buy and a sell of the same stock for the same amount the same day 2 times. It thought it may have been a duplicate entry. I just selected "not a duplicate" and it moved right along without a hitch.

[was pennytrader]

No problem, I'm glad it worked for you. I'm glad I could help. :)

[TEX]

You might consider linking to www.fairmark.com in your i-box; good source for traders...

For instance, on the benefit of being classified as a "trader" rather than an "investor":

"Tax Benefits
If you're a trader, you're likely to be able to claim more deductions than an investor. Some deductions that would be claimed as itemized deductions subject to various limits will be allowed as business deductions, without such limits. And there are some deductions traders can claim even though investors can't claim them at all.
In addition, traders are eligible to make the mark-to-market election. If you make this election, your trading losses won't be subject to the $3,000 capital loss limitation. This limitation can be very painful for a trader who has a bad year."

Also, traders who make the mark-to-market election get their gains treated as ordinary income. But it's too late to do that for this year's return--paperwork had to be filed *last* April. But anyone who qualifies could file this April, for next year's return.

But, filing as a trader if one is "borderline" has audit risks, and the definition of "trader" is not spelled out by the IRS...

Good pro/con discussion here:

http://www.fairmark.com/traders/

http://www.fairmark.com/traders/

[Beylerbeyi]

I don't know how to thank you
I did not know you can access to gainskeeper using your amtd account

thanks

[birdshot]

well that's good to hear penny. thanks again for the replies. i'll let you know how my situation with the errors transpires!