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> Finally, this is a tax nightmare. I can maybe get past the risk since I invest a lot anyways, and cap gains since interest bearing accounts are also taxed as
by jldugger 5y ago
> Finally, this is a tax nightmare.
I can maybe get past the risk since I invest a lot anyways, and cap gains since interest bearing accounts are also taxed as ordinary income, but if every withdrawal causes a reportable sale, how is this not a IRS paperwork nightmare?
- konne88 5y agoYou can usually aggregate all your trades into a single line on your tax form. "You can aggregate all short-term and all long-term covered transactions and report them as single-line entries directly on Schedule D. A covered transaction is one where your broker provided a 1099-B Form to the IRS that: 1) Show acquisition date and basis and 2) Don’t require any adjustments or codes" https://www.hrblock.com/tax-center/income/investments/reporting-multiple-stock-trades-on-schedule-d/ https://www.hrblock.com/tax-center/income/investments/report...
- jklein11 5y agoLet me make sure I understand. My broker (in this case Financial Choice) will provide me with a 1099-B with a list of every time I bought or sold a security(this seems like it would be any time a used the checking account). I can then use the 1099 b to figure out what number goes into Schedule D.