DaveF1006
Expert Alumni

Deductions & credits

Please read the instructions for 3115.  This gives a complete breakdown on how or report items in line 13 and line 5 part A on Schedule A. This may help you determine how to record this information in the 3115.

 

Present and proposed methods refer to the 481 (a) adjustment to be made and is addressed in the 3115 instructions. Please read the two examples given in this section as it is difficult for us to comment on this.  The present method is what is presently used to value your securities inventory but  your proposed method of valuation  may change the value of your inventory. If it does, line 26 will reflect the amount that differs between the two methods I mentioned above. If you don't know, you may need to do a cost valuation analysis to project a change in valuation. 

 

Hopefully this helps. Day Trading can be complicated and risky at the same time thus we can only give limited advice on how to record this because we are Tax Advisors and not Financial Advisors.

 

@Sam Hopi 

 

 

 

 

 

 

 

 

 

 

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