Tax Treatment & Rules

Tax Lots (FIFO & LIFO)
How do I change my tax lot selection? As “cute” as FIFO & LIFO may sound, they are not the names of stuffed animals. Instead, they are more commonly re...
$0.00 Cost Basis on Short Equity Options
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...
Wash Sales/Disallowed Loss
What is a Wash Sale? The IRS created wash sale rules to prevent investors from forming artificial losses (Publication 550). For example, if you close a pos...
Total Commissions & Fees on Tax Forms
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...
Short-Term vs. Long-Term and 1256 Contracts
Tax treatment for short-term capital gains/losses is considerably different from long-term capital gains/losses. Let’s break down the differences. Short...
Taxes on options exercises, assignments, and rolls
Booking profits or losses from buying to close a short position or selling to close a long position is pretty straightforward, but how is it treated when yo...
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...
Substitute Dividend Payment
What is a Substitute Dividend Payment? AKA "Sub Payment, DIV" on Form 1099-MISC Did you receive a dividend from shares held in your margin accou...
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...
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