I understand, I need to report every stock/option transaction during tax return of my brokerage account which I use to trade stock and options.
Will I have to do the same for my Roth-IRA account?
Posts Tagged ‘Report’
How do I report capital gains against a 1099-B issued for a transaction in the prior year?
31
May
This a rather complicated tax question:
The company I work for was acquired at the end of 2007 in an all-for-cash transaction. The sale resulted in a disqualifying disposition of my vested incentive stock options. My company therefore included the income for this disposition on my 2007 W-2, and I will pay taxes on the gain for the tax year 2007. So far, so good.
Here is where it gets complicated. The transfer agent who handled the transaction did not pay the proceeds from the 2007 transaction until 2008. As a result, I will receive a 1099-B in 2009 for the proceeds received in 2008. Given that I will have already paid income taxes on the disqualifying disposition for the 2007 tax year, do I simply report a capital gain of $0 against the 1099-B when I figure out my 2008 taxes in 2009?
Russ B -
I think you have grasped it. The transaction occurred in 2007, but the shares were not redeemed by the transfer agent until 2008. To answer your questions: I exercised the options at the time of the acquisition in 2007, and then redeemed the resulting shares for cash in 2008 (through the transfer agent). Does this provide sufficient clarification?
Since the acquisition was all-for-cash, there is no difference between the exercise price and the price at which the shares were sold. So does that mean that I essentially pay the tax as income tax in 2007 (as specified on my W-2), but then my cost basis in 2008 for redemption of the shares is now the same as the selling price, so the capital gain for 2008 is $0?
Do I need to report Stock Option Payout if it is already reported on W2 Form and already taxed in paycheck?
31
May
My company was acquired in 2006 and the acquisition closed at the end of the year. All of our vested stock options were paid out in our paycheck, and taxes were withheld from them. In addition, we were also paid out for our last ESPP purchase in the same pay period and taxes were also withheld for this. All of these sales are already included in my W2 form and included as income. My question is: Since taxes were withheld for the last ESPP and all of my vested stock options already, do I still have to report them in Schedule D as Capital Gain?
I am using TurboTax Premiere, and if I report these sales it automatically adds disqualifying disposition as income to my W-2, which is incorrect and redundent.
Thank you for all of your responses! My stock options were mostly ISO, but some were Non-Qualified. The exercise and sale date is the same. My company paid us for all of our vested stock options. They reported the difference between [ (Deal Price - Option Price) x Number of Vested Shares ] as income in my W2 and this income has already been taxed. For example,
Number of Vested Shares: 1000
Option Price: $30
Deal Price: $40
Cash Payment = [ ($40 - $30) x 1000 ] = $10,000
The $10,000 was paid out in a paycheck and tax was deducted. I did not receive a 1099-B for the sales. In fact, I called my broker and they said because the transaction was performed by the company, they will not be reported in 1099-B. As for the non-vested stock options, they were converted to company stock of the acquiring firm so I am not as concerned about them because I still hold them.
My last ESPP purchase was treated the same way. The difference between [ (Sale Price - Purchase Price) x Number of Shares Purchased ] was reported as income on my W2 and has been taxed already. This purchase & sale was also not reported on 1099-B.
So my main concerns are:
1. Do I have to report these sales? They have been taxed already and I don’t want to be taxed twice.
2. There is a possibility that too much tax has been deducted from these sales in my paycheck. If so, how do I figure out how much should be taxed? I believe the only way is to enter these sales thru Turbo Tax Premiere.
Do I report EVERY stock trade to IRS?
28
May
When I execute a market order in some illiquid stock, there may be as many as 5 different prices at which the stock is bought/sold within a matter of seconds.
Could I take the average of the prices instead of reporting each of these little trades??
This is not a retirement account.
Why do shares fall on excellent earnings report?
21
Apr
In particular I was watching Divx (http://finance.google.com/finance?q=divx) today. Before close the stock was up nearly 8%. At close, company reported record quarterly earnings report with great outlook. Nevertheless, after-hours trades indicate 30-35% drop in the share price.
I just don’t understand the logic, may be you do?
There were no other news. Shares dipped immediately after release. The company hit record earnings (http://www.streetinsider.com/Press+Releases/d/3449519.html), for both Q4 and FY 2007. It also provided excellent guidance for Q1 and FY 2008. All expectations were exceeded.
I know why *some* stocks do that on expectations. What I want to know is what is in their Q4 report that is perceived as “negative” or a cause for drop in price.
How to use turbotax to report stock index option trading?
19
Apr
For index option trading, there is a 60/40 rule. 60 percent of the profit is considered long term capital gain. 40 percent is considered short term capital gain. Does anyone how to report this in turbox so that turbotax knows the 60 percent part is for long term capital gain?
Thanks.
Thanks.
BTW, I use turbotax online. How do I manually override with “long term capital gain”?
How to report profit/loss incurred from Currency Trading on Canadian Income Tax. Its not Capital gain or loss?
06
Apr
Hi,
How to report profit or loss incurred from Currency Trading on Canadian IncomeTax Return. It doesn’t fall inot Capital gain or loss Category.
Please help
Will stock and foreign currency trading show up on my credit report? What web sites do you use to do this?
16
Mar
I’d like to get into stock and foreign currency trading if it will not show up on my credit report. What companies do you use for these activities?
If I make income trading currency on the foreign exchange, must I report this on my federal taxes?
15
Mar
I want to start trading currency on the foreign exchange but am not sure if I would need to report my returns as income on my federal income tax return. If I do need to report it, how so?
