How can I select a tax lot for a closing trade? (FIFO & LIFO)
As “cute” as FIFO & LIFO may sound, they are not the names of stuffed animals. Instead, they are more commonly referred to as “First-In-First-Out” or “L...
Tax Treatment & Rules
Why do all of my short options have a 0.00 cost basis?
Are you looking at the Proceeds from Broker and Barter Exchange Transactions section of your Consolidated 1099 and wondering why you see a 0.00 cost basis f...
What is a Wash Sale and how does it affect my taxes?
A wash sale, in a nutshell, is a rule created by the IRS (Publication 550) that prevents investors from forming artificial losses. There are some things to ...
Where are my total commissions & fees listed in my Consolidated 1099?
Are you reviewing your Consolidated 1099 and are wondering where your total commissions and fees list in your tax forms? Well, look no further than your P...
What is Short-Term & Long-Term Capital Gains/Losses and 1256 Contracts?
Tax treatment for short-term capital gains/losses is considerably different from long-term capital gains/losses. Let’s break down what defines a short-term ...
How to Report Section 1256 Contracts (Futures and Cash-Settled Index Options)
Whether you are filing taxes the old-fashioned way using paper forms or using tax software, you'll want to keep in mind that you file your gain or loss...
How are Dividends Taxed?
When it comes to owning stock, everyone deserves his or her slice of the pie in the form of a dividend, but that’s if the company pays one. Dividends come i...
Why do I have a Substitute Dividend Payment?
What is a Substitute Dividend Payment? AKA "Sub Payment, DIV" on Form 1099-MISC Did you receive a dividend in your margin account, but for some ...
How are referral credits taxed?
Whether you redeem your referral credits for cash award(s) or prize item(s), both are subject to taxes. That means if you received a cash reward(s), a prize...
How can futures settlement affect my taxes?
Futures are a different animal. Futures and options on futures are mark-to-market each day based on the settlement price, or in other words, they are Sectio...