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Posted by brandonbookless on February 13, 2007, 1:49 am
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Since 2002 I have bought small amounts of about a half dozen
stocks through Sharebuilder. In mid-2006 I sold almost
everything to put a down-payment on a car. Now, I am wading
through the end-of-year statements from Sharebuilder along
with the 1099 statement and I am totally confused. I am
trying to use TurboTax Deluxe 2006 to get me through this,
but I am still not understanding what it is asking me.
How do I figure the gross proceeds, cost basis, and date
acquired when I bought a certain stock each week for over a
year? The price changed from week to week and I didn't
"acquire" then all at once. Also, I know I did make money
on a couple of stocks, but I lost money on other stocks so I
am really hoping they cancel each other out. I will need to
account for that too.
As I mentioned, I sold almost everything at one time, but
then I sold just one stock a couple more times in 2006. So,
I need to figure out how to do the First-In, First Out
process on that stock too.
Please help this completely confused tax-payer.
Thank you.
Brandon
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Posted by Ernie Klein on February 13, 2007, 5:22 pm
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brandonbookless@gmail.com wrote:
> Since 2002 I have bought small amounts of about a half dozen
> stocks through Sharebuilder. In mid-2006 I sold almost
> everything to put a down-payment on a car. Now, I am wading
> through the end-of-year statements from Sharebuilder along
> with the 1099 statement and I am totally confused. I am
> trying to use TurboTax Deluxe 2006 to get me through this,
> but I am still not understanding what it is asking me.
Yes, it is confusing.
> How do I figure the gross proceeds, cost basis, and date
> acquired when I bought a certain stock each week for over a
> year?
That's the rub. It is a lot of work, but you have to report
each purchase separately with the date of purchase, number
of shares and fraction of shares purchased, and price of the
shares purchased. The sale price should be the same for all
shares of the same company if you sold them all at the same
time, otherwise you have to figure this on a first in, first
out basis. The total of all shares sold should equal the
total of all shares purchased, each "lot" with it's own
basis and capital gain (or loss).
Also and stock that was purchased within one year of the
sale has to be reported as short term capital loss or gain,
but TurboTax will figure that out if you have entered each
date of purchase and sale.
As I said in another thread, I use Quicken to keep a running
track of all stock purchases and reinvestments, then at tax
time a capital gains report can be imported directly into
TurboTax which takes all (or most - still have to enter the
data into Quicken) of the work out of it.
> The price changed from week to week and I didn't
> "acquire" then all at once. Also, I know I did make money
> on a couple of stocks, but I lost money on other stocks so I
> am really hoping they cancel each other out. I will need to
> account for that too.
After you have inputted all of the data, TurboTax will add
up all of the gains and subtract all of the losses and then
you will know if you will owe additional tax or have a loss.
> As I mentioned, I sold almost everything at one time, but
> then I sold just one stock a couple more times in 2006. So,
> I need to figure out how to do the First-In, First Out
> process on that stock too.
You would input these the same as above but instead on a
single sale date there would be several and you are correct
that you need to account for each sale and the stocks the
represent that sale are on a first in, first out basis.
--
-Ernie-
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Barry Margolin on February 14, 2007, 10:01 pm
Please log in for more thread options > brandonbookless@gmail.com wrote:
>> How do I figure the gross proceeds, cost basis, and date
>> acquired when I bought a certain stock each week for over a
>> year?
> That's the rub. It is a lot of work, but you have to report
> each purchase separately with the date of purchase, number
> of shares and fraction of shares purchased, and price of the
> shares purchased.
No you don't. You only have to split them into long-term
and short-term sales, and report each SALE separately within
those sections. You can enter "various" for the purchase
date, and add up all the purchase prices and gross proceeds
of the sales.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by cballard@tyyni.net on February 14, 2007, 10:01 pm
Please log in for more thread options > That's the rub. It is a lot of work, but you have to report
> each purchase separately with the date of purchase, number
> of shares and fraction of shares purchased, and price of the
> shares purchased. The sale price should be the same for all
> shares of the same company if you sold them all at the same
> time, otherwise you have to figure this on a first in, first
> out basis. The total of all shares sold should equal the
> total of all shares purchased, each "lot" with it's own
> basis and capital gain (or loss).
[snip]
> You would input these the same as above but instead on a
> single sale date there would be several and you are correct
> that you need to account for each sale and the stocks the
> represent that sale are on a first in, first out basis.
There's actually an easier way. According the to the
Schedule D instructions:
If you sold a block of stock (or similar property) that you
acquired through several different purchases, you may report
the sale on one line and enter "VARIOUS" in column (b).
However, you still must report the short-term gain or (loss)
on the sale in Part I and the long-term gain or (loss) in
Part II.
So, rather than entering each of these transactions
separately on Schedule D, you can enter the sale for each
security as one transaction (or two transactions if you had
both long term and short term holdings). Enter the total
basis you had in the security in column (e), enter the total
proceeds in column (d), the date sold in column (c), and
"various" in column (b).
--Chris
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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