Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thank you for using Just Answer.You will be filing a Schedule D every year that shows your sales for that tax year. It will be very important for you to keep good records of your costs and sales price. Be carefull about selling and buying the same stocks within 60 days. This is known as a wash sale and you can cannot imediatly recognize or use losses on wash sales.You can on the Schedule D just enter your botXXXXX XXXXXne on the total and then attach a copy of your printout but as I said make certain that you account for any wash sales you may have had.
I dont do stock trading at all , i do only currency trading / forex trading (selling & buying currency pairs like EURO/USD , USD/GBP , etc. etc.) and in forex trading we do buying and selling the currencies in the same day to book profit most of the time .
Your gains and losses are considered as interest income and expenses. This falls under IRC 988 but you can opt to have your gains taxed as Capital gain which would be an advantage to you.
This area can be very complicated and more involved then you should rely on in a chat. I suggest you have your return prepared by a professional that is fasmiliar with foreign currency exchange as you will have a possible daily rate to deal with.
and what about the transactions on which is capital looses and not capital gains
Then those would be ordinary if you choose to have the losses shown as 1256 instead of 988 you would show on Schedule D using the 60/40 split but still be limited by gains and then carryforward at $3000 loss limit each year till used.
I suggest you read the followinghttp://www.greencompany.com/EducationCenter/GTTRecCurrency.shtmlI cannot add more to the converstaion, this is all still up to IRS interpretation of thetrading.
what is form 8949 i heard to report capital gains
The Form 8949 is a new form that will list all the transactions. Starting with 2011, Schedule D now functions as a summary of all capital gains transactions. Individual investment sales are to be detailed on the new Form 8949.
Thank you in advance for clicking ACCEPT
Yes, I said in the beginning that you can do that. You will still need to use the 8949 but you can list the total and then attach a statement. E-filing would need to be addressed when the e-file program opens for the IRS. I do not know how they are going to handle that yet. YOu may need to mail if you want to use a statement and not enter the transactions. Whatever program you use to file will advise if you can e-file.