Important Note: The Worksheet has been prepared using IRS guidelines for information purposes only. It is not intended to replace any official IRS tax forms or schedules; and should not be regarded as an IRS Form Schedule D.
Interactive Broker's 2009 Gain/Loss Summary Worksheet ("Worksheet") provides the capital gains and losses for your account's year-end review. Investors of a limited number of securities will find the pairing of 2009 sell trades useful. Designed to aid with your year end reconciliation, the following securities and trades are included: Bonds, Equity Options, Fractional Shares, Index Futures*, Mutual Funds, Short Sale, T-Bills, Tender Offers, and WHIFITs.
A general explanation of the Worksheet is organized below by Parts, Columns, and Totals.
The Worksheet is divided into two parts. The period in which you held the position determines whether or not Short-Term or Long-Term applies.
Part 1 - Short Term Capital Gains and Losses - Assets Held One Year or Less
Part 2 - Long Term Capital Gains and Losses - Assets Held More Than One Year
Each section contains the following seven columns to identify your trades.
|(a) Description of property||(b) Date acquired||(c) Date sold||(d) Sales price||(e) Cost or other basis||(f) Gain or (loss)||Codes|
1. (a) Description of property...shows the security symbol, name, quantity, and other information to identify the asset sold.
Example: 500 sh. DB - DEUTSCHE BANK AG-REGISTERED
2. (b) Date acquired...shows the trade date of your security's purchase.
Asset Transfers: IB has entered the date supplied by you through Position Transfer Basis. If an update was not received by year-end, then the asset transfer settlement date appears. See your monthly or annual summary for details.
Short Sales: The box is left blank if the closing trade has not been completed. For short sales included on a prior year Worksheet or 1099-B, the code ADJ is entered.
3. (c) Date sold...shows the trade date of your security's sale.
4. (d) Sales price...shows the gross security sale price, net of commissions.
Option Adjustments: For exercised call options, the writer's sale proceeds have been increased by the amount received for the call. For exercised put options, the holder's sale proceeds have been reduced by the cost of the put. See IRS Pub. 550, page 57, for details. For expired options, an amount of 0.00 is entered, followed by the Code "Ep".
5. (e) Cost or other basis...shows the total price paid for your security, plus commissions.
Corporate Actions: Adjustments have not been made for any stock splits or non-dividend distributions. See IRS Pub. 550, page 44, for details.
Mutual Funds: IB does not use an average basis for mutual funds. The First In, First Out (FIFO) method is used.
Original Issue Discount: The basis has not been increased by the amount of OID included in your income. See IRS Pub. 550, page 13, for details.
Option Adjustments: For exercised put options, the writer's basis has been increased by the amount received for the put. For exercised call options, the holder's basis has been increased by the cost of the call. See IRS Pub. 550, page 57, for details.
6. (f) Gain or (loss)...shows the calculation for each security using the tax execution methods First-In, First Out (FIFO), Last In, First Out (LIFO), or Maximize Losses (ML).
Loss: Negative amounts are identified in parentheses. For example, a loss of $2,000.00 displays as (2,000.00).
Tax Method: If no code appears in the Codes column, then FIFO applies. The other methods are noted by either LI = LIFO or ML = Maximize Losses.
7. Codes...shows various trade designations, such as: corporate actions, asset transfers, or option assignments.
Codes and Meanings Table: The last page of the Worksheet contains a table to identify each non-security symbol used.
1. Subtotal adjustment from option assignment...shows the total amount of all sale proceeds increases or decreases made from option assignments to the assigned stock sale proceeds (see Cost or other basis details above).
The adjustments, in accordance with IRS guidelines, are added or subtracted in order for the next Subtotal line to equal the amount reported by IB on the 1099-B, box 2. Please keep in mind that IB does not report any option proceeds or adjustments to sales proceeds from assignments on the 1099s.
2. Subtotal for stocks, bonds and T-bills...shows the total non-adjusted proceeds reported for each trade under column (d) Sales price for stocks, bonds, and T-bills only. This amount should equal the 1099-B, box 2, amount.
1099-B, box 2: In general, this 1099 figure should equal the combined Parts 1 & 2 Subtotal for stocks, bonds and T-bills figure.
3. Total...shows the combined proceeds for all trades under column (d) Sales price, including option sale proceeds.
Total Option Sale Proceeds: Subtract the Total amount of column (d) from the Subtotal for stocks, bonds and T-bills of column (d) to obtain the total proceeds from all option sales.
Click here to go back to the main 2009 Worksheet article.
Note: Securities classified by the IRS as IRC Section 1256 contracts are included on the Gain/Loss Worksheet for 1256 Contracts.
IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.