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Tax Law (Questions About Taxes)/Reporting Tax on Stocks Purchase/Sales

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Question
Hi! My question is on stocks purchases.  My husband and I are trying stocks, short terms buying/selling, maybe keeping some stocks as short as a couple of weeks. Nothing large, we are just planning on keeping $30k in Ameritrade.  A few years ago, we tried once, and when tax season came, it was a bit painful, seems like we had to report every purchase/sales, calculating and reporting the minor differences on each stock.  Is that correct?  Say if each month we have a few transactions, when it's tax season, we'll have to have kept records on every transaction and report them all individually on our filing?

Answer
Shelley,

Thanks for your question.

Yes, that is correct.  However, the IRS will now allow you to attach the broker's conforming statement to your return and enter the summary amounts on Form 8949, transferred to Schedule D.  If you are e-filing, your software program should be able to handle this by treating the broker's statement to a fileable PDF document.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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