Day Trading losses with CMEG

You can report your trades without a 1099-B.

To visit this section of TurboTax:

1. With your return open, click the Federal Taxes tab 
   or Personal if using Home & Business
2. Then, Wages & Income
   Desktop users will then need to click I'll choose what I work on
3. Click Jump to full list or similar verbiage if you see it
4. Then, scroll down to the "Investment Income" section. 
   Online users may need to click Show more to expand the section
5. Next to "Stocks, Mutual Funds, Bonds, Other" click Start/Update/Revisit
6. When asked "Did you get a 1099-B or a brokerage statement for these sales?" select No.
7. Next, Choose the type of investment you sold, then follow the entry screens

I don't see that option. This is what I'm given.

Basically I am not getting the question "Did the broker send you a 1099-B?" :(

When in your return, if you select "Personal" tab, it should open you to "Personal Income" selection section - then scroll down the page a little, and you should see in bold "Investment Income". Are you not seeing this section? My apologies, I am just not sure how far you went or how you went about going there. If you did not try that route, please do and let me know and I can better advise should you need me to. 

I don't see any tab labeled "personal." How many different versions of the software are there, it seems like everyone has a different layout....

If you will not get a 1099-B, your transaction Sales Category is C or F.

Inter the transactions manually or use the summary option.

check out the forum for all the problems people are having with 1099-B this year.

You might consider yourself one of the lucky ones.

I can enter my summary manually as if it were a 1099-B. Should I do that? I know my net P/L

You can enter your trades if you know the information regarding purchase date, sale date, proceeds and cost basis. When you go into the stock sale section of TurboTax, you will be asked if you have a form 1099-B, just answer no to that question and proceed.

I don't have that option in TurboTax Self Employed edition.

You can request a 1099-B from them -- I think they charge a nominal fee in the neighborhood of $15 for running the report.

I requested it and they said they don't provide country specific tax forms.

You can enter your trades in TurboTax even if you don't have a form 1099-B by using the following menu tabs:

1. Income and expenses
2. Investment Income
3. Stocks, Mutual Funds, Bonds, Other

Indicate that you don't have a 1099-B or a brokerage statement for these sales. Then choose the I'll enter a summary for each sales category option. Then enter the proceeds, cost basis and indicate the holding period as Short Term or Long Term.

Ok so I can just enter my summary as if it were a 1099 manual entry? That seems to be my only option. 

Yes, you can enter the summary totals manually.  

That's the problem I'm having, I never see the section to:

Indicate that you don't have a 1099-B or a brokerage statement for these sales. Then choose the I'll enter a summary for each sales category option. Then enter the proceeds, cost basis and indicate the holding period as Short Term or Long Term.

Maybe it has something to do with using the Self Employed version of TurboTax, but these are the screens I get...

Nowhere does it say, "don't have a 1099-B or a brokerage statement for these sales".

Yeah same here lol. So I'm guessing I just throw the summary in there and call it a day...seems like nobody actually knows. Seems like there is no consistency here between what everyone sees....

You can do a summary of long term and then short term combinations.  Make one entry for each (long term / short term). You can then send the worksheets or statement with Form 8949 after your return is accepted, attached to Form 8453.

To eliminate difficulty, make sure the date acquired reflects the correct holding period.  It's not important other than to have the correct holding period for the results to be calculated accurately for tax on your return.

• Long term is a holding period of more than one year and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)
  • Sale date can be the last date a sale occurred or 12/31/2020
  • Purchase date can be 'Various' 
    • ​​​​​When I walk through the steps, as you can see from the image below, you must select the check beside 'Something other than a date'.

If you are e-filing your tax return, then mail your statements along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet).

So do I have to enter every single day trade that I made?

As DianeW777 tells you above, you will make 2 entries.  One for long term and another for short term.  

Okay thanks! That is what I've done so far. My long term trades are taken care of. Then, from my CMEG account statement, I put my P/L summary which equals my total losses.

Yes, That is correct if this is the summary of your short term holdings transactions (since you indicated the long term trades were already entered).

Then follow the instructions above for sending your detailed statements to the IRS after your return has been accepted.  The mailing should take place within three days after acceptance.

Okay perfect! Thank you so much!