Tuesday, February 3rd, 2015

Is it hard to do your taxes if you do a lot of stock trading?

? Have to report every transaction? Of shares when you file your declaration? No taxes? I bought and sold many stocks in 2007 (and lost much money because I was so inexperienced). I want to know if I will have difficulties to submit my declaration? No tax. .


4 Responses to “Is it hard to do your taxes if you do a lot of stock trading?”
  1. Serge M says:

    Yes, you have to report every transaction that involves the sale of stock at a gain or loss. You do not have to report purchases of stocks that you still hold.

    You have to keep good records, and if you list your stock sales in a spreadsheet, you can simply print a copy of the spreadsheet to report with your Schedule D in your tax return.

    There are some complications because you can deduct only $3,000 of losses and you have to carry any losses in excess of $3,000 to future years. Also if you earned dividends, you have to use a specific procedure to calculate your tax because dividends are taxed at a lower rate than other income.

    However, following the instructions, anyone ca prepare the tax return. The trick is to keep good records of all stock transactions.

  2. The Great Poomba says:

    I was in your exact situation last year and from experience it was quite difficult. I’m sure if I was more organized it would have been better, but for me my brokerage account was very unorganized and when I plugged everything into turbo tax it was a huge pain to figure out all buy/sell prices, dates, etc. Hopefully you were more organized than me, otherwise it’ll take at least a few good hours of research.

  3. Judy says:

    I wouldn’t call it hard, but it’s tedious. Yes you have to report every sale.

  4. v b says:

    File on paper.

    Then you can put “see attached” and the totals on the schedule D.

    Your excel spreadsheet just has to have the same columns as the D-1, you don’t actually have to put all the transactions onto the D-1. Hint, budget 2 hour sessions to get the spreadsheet input and “right”–you want to be sure you don’t leave off any transaction. The IRS is going to compare it to the 1099-Bs they got and if the totals don’t add up, you’ll have a bigger mess later. Remember if you had 200 sales, you need 200 entries.

    Even if you efiled, you would have to send in the D-1 on paper.

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