Data Requirements

Letting us do it for you ... here's what you will need to provide:
  • Copy of prior year tax return(s) - Federal and state

  • W-2s

  • 1099s - Interest, Dividend, Barter & Exchange, Consolidated, Retirement, Gambling, Unemployment

  • SSA-1099, RRB-1099

  • Sole proprietorship

    • Accounting file - Quickbooks, Quicken, Excel spreadsheet​

    • W-3/Form 941s - if employees exist

    • Home office detail (if a home office exists)

    • Vehicle use substantiation - mileage log, other

    • Depreciation schedule from prior year tax return

  • Schedule K-1s - partnership, S corporation, trust​

  • Rental property

    • Purchase date and price (closing statement, HUD-1)​

    • Improvements (appliances, additions, furniture and dates placed into service)

    • Rental income

    • Rental expenses

      • Mortgage interest​

      • Property tax

      • Insurance

      • Management fees

      • Repairs with receipts

      • Utilities

      • Other

​​

If you are an Investor, Trader, MTM Trader

  • End of year brokerage statement showing open positions

  • End of prior year brokerage statement showing same and cost basis (if this is the first year we are preparing) and purchase date

  • Download of trades in Excel format (see below)

  • If you have made a MTM election, a copy of your election form and tax year

For IRS Identity Theft purposes:

  • Driver license for your state

  • Date of birth (if no driver license provided)

This is not an exhaustive list but should cover a majority of data necessary

 
Format of the trading data

The data must be in this format or these elements must be readily available.  Most of the expense in preparing Form 8949 is getting the data into the correct format

Data format 2.jpg

This is an example of data from TD Ameritrade

Let us know when your data is ready to review >

Most of the problems exist when brokers DO NOT include the closing expiration, assignment or exercise transaction, as shown above with the:

REMOVAL OF OPTION DUE TO ASSIGNMENT/EXPIRATION (0AVGO.AO00320000)

The actual option must be determined, probably by using the 'Adding Closing Transactions' template in conjunction with converting the symbol to the OSI format.

Why brokerages do not include the Symbol, which would be easy, is beyond me.  This is sample data from TD Ameritrade.

Note that the data elements for the option symbol must all be present.

Open Positions

Tying out the beginning and ending opening positions is the first and most critical step in preparing a trader's tax return.

  • Inclusion of all prior year open positions - including the purchase date and cost basis

  • Processing of all the opening and closing option trades as well as all stock buys and sells

  • Tie out the ending opening positions as to number of options/shares held and their adjusted basis as a result of wash sales and/or assignment/exercise

As explained elsewhere on this website, sometimes (most of the time) brokerages use settlement date to reflect open positions.  This can be a problem when IRS requires trade date as the tax trigger.  Sometimes Form 1099-B will even reflect the sale of a security that is also shown as an open position on the year-end statement.  We take steps to correct for this inconsistency.  This is obviously more problematic for a Mark-to-Market trader since the open positions have tax ramifications associated with them.

By following this process we know that we have captured all the trades for the year.

 

We will review your information and provide the following:

  • Estimate of time to prepare the requested forms - complete tax return or trading forms

  • Retainer necessary to start, typically 50% of estimate, payable via PayPal or Venmo

  • Payment in full is required before tax return is provided (see Estimates)