- quote -

Assuming you have a computer, since you are sending an email
message, spring for one of the many available pieces of tax
software like Turbotax or Tax Cut. For $30 or less, it will
do all the calculations for you. It will not calculate the
basis (your cost) on investments where you have multiple
purchases and dividend reinvestments and later sold the
stock as a single block.

There is another form available, Schedule D-1, the
Continuation for for Schedule D. See
http://www.irs.gov/pub/irs-pdf/

If you are still confused, then hire a professional. You
may find that you have been making other mistakes that are
costing you money or putting you in line to get audited.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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"Hrblockhead14" <hrblockhead14[at]aol.com> wrote:

- quote -

That is interesting if that is really true. You can't JUST
do the Schedule D as a standalone, as that is where the
actual tax would be figured. And I would think the preparer
would then need to sign the return when they would really
have no knowledge of what eles is in there. I am rather
surprised that they will do this. I certainly would not.

Vida Freeman, EA

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) wrote:

- quote -

Take a look at GainsKeeper <http://www.gainskeeper.comspecifically, if you're interested in Schedule D
transactions - they may be able to import data directly from
your brokerage account. They will also keep track of wash
sales, which you need to worry about since you're trading
the same stock frequently.

You might also get good results out of one of the consumer
tax prep packages like TurboTax or TaxCut.

If you want to keep doing the return on paper, look for the
Schedule D continuation sheets - a/k/a Schedule D-1. IRS has
a fillable PDF copy of D-1 available on their website.

--
Greg Broiles, J.D., E.A.
gbroiles[at]spamcop.net

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LaDonnaMemphis wrote:

- quote -

Use Schedule D-1 for the trades that don't fit on Schedule D.

- quote -

The IRS provides an "instruction" booklet for Schedule D at
http://www.irs.ustreas.gov/basic/forms_pubs/forms.html
with line-by-line instructions. However, if you want to
understand the logic behind the calculations, you won't find
it there. Basically, Congress wrote a complex tax law for
2003, where ordinary income and five different categories of
capital gains (plus other things) all interact with each
other to determine our tax, and Schedule D reflects that
complexity.

- quote -

That might work. Alternatively, I've been satisfied using
TurboTax software. Just decide in advance on your objective:
is it (a) to get your return to be correct, or (b) to
understand the logic behind all the calculations? To me, (a)
is enough and (b) is pointless (it'll change next year
anyhow).

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- quote -

While it may be educational to do so, it will have little
practical value. Many of those "kooky calculations" were
there because of mid-year changes in the tax laws, and will
(hopefully) not be there next year.

--
Don EA in Upstate NY

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) wrote:

- quote -

If you look at the top of Schedule D, you will see that it
says "Use Schedule D-1 to list additional transactions for
lines 1 and 8." Schedule D-1 has room for 48 transactions -
24 short-term and 24 long-term. And you can use as many D-1s
as you need.

Doing taxes is actually pretty easy when you follow the
instructions.

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"LaDonnaMemphis" <ladonnamemphis[at]wmconnect.com> wrote:

- quote -

There exists a Schedule D-1 form that gives you more space
to enter transactions than does Schedule D. Get one of
those and carry the results of it to Schedule D.

Wayne Brasch, CPA, M. S. Taxation

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) posted:

- quote -

Actually, right below those "3 or 4 lines," you should note
line 2 (or line 9, for long-term) -- which directs you to
enter your totals, if any, from Schedule D-1, line 2 (or
line 9). Schedule D-1 is virtually nothing but blank lines,
so you can list an infinite number of trades to account for
*all* reported proceeds, individually. You simply use
additional pages of D-1, as necessary.

- quote -

One option, which has been advocated by others in this
group, is to maintain a record of your trades in a format
similar to that used on Schedule D (and D-1), to reflect
dates of purchase and sale, and resulting gains or losses
for each parcel of shares.

You can then print this out, with a heading such as
"Substitute Schedule D-1" and attach it to your Schedule D,
with the grand total figures entered on the Schedule D-1
appropriate line. Day Traders, for example, may use such a
device.

I believe one poster in this group suggested simply showing
the grand total of all 1099-Bs (which should come from the
broker) with the resulting dollar amount entries in the
appropriate columns -- and attach a statement affirming that
the details for individual trades are on file and will be
provided if requested. The logic of that proposal was, that
so long as your total proceeds match the amounts reported by
the broker on 1099s, IRS will be satisfied.

Of course, dollar entries would be separated for short-term
and long-term, as appropriate.

In any event, the key issue is that you must account for the
total proceeds received and reported -- and you have some
leeway in the exact procedure, so long as your return
clearly explains your technique, and demonstrates your
intent to comply.

Bill

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) wrote in

- quote -

There is a schedule D-1. Right on the top of sched d it says
"Use Schedule D-1 to list additional transactions for lines
1 and 8." Sched D- 1 is referenced on sched d it you look.
For a single sale that consisted of multiple buys, you can
use something like the word "Various" for the purchase date.
You have to be careful though since the purchase date will
determine if it's LT/ST for instance.

- quote -

It's basically just follow the lines carefully reading EACH
word and mechanically doing it.

- quote -

Many "chain" preparers will not be able to show you since
their software just cranks it out. There are exceptions of
course.

Other places like CPA's, if willing to walk you through it,
will probably charge the hourly rate.

Why not just use a software pkg, plug in the trades, let it
crunch, then look at the output. Be a lot cheaper and you
could walk yourself through it at your own pace till you
"get it"? Just a suggestion.

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Schedule D-1 providess additional lines for as many
transactions you may have had, you can use as manmy copies
as needed and carry the totals back the the Scedule D.

H&R Block has a good worksheet to figure the Capital Gains,
Call one of their offices, the blank forms are usually
provided at no cost. They will also do just the Schedule D
(for a fee) as a stanalone.

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LaDonnaMemphis wrote:

- quote -

There is a form School D-1 with additional lines.
Alternatively an Excel worksheet with the same information
in the same order can be attached to your return and the
totals entered as a line or two on schedule D.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) wrote:

- quote -

Most people only need a few lines of Schedule D, to record
their sales. If you need more, use Schedule D-1, which is a
continuation sheet. On the D-1 you get about 50 lines each
for short-term or long-term gains.

The instructions mention the continuation sheet.

- quote -

While daunting, Part IV of the Schedule D is really quite
simple in the math skills required. As long as you can add,
subtract, multiply and divide AND read the line instructions
carefully, you can do it. Don't try to figure out what the
line is asking you to do -- just do it!

Alternately, just get Basic TurboTax next year and save
yourself the frustration.

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) wrote:

- quote -

There is a form Schedule D-1 provided for you to list
additional trades. You can put about 25 on each page.

There is a free spreadsheet you can download and insert your tax data
at edcosoft.com/qitc.html that shows all the lines of the 1040,
Schedule D and its worksheets, form 6251, etc complete with the
formulas for each line, so you can see how they are supposed to be
calculated and the result for your data. Any tax program produces
these forms so you could use a web-based free tax program to do the
same thing (but only a spreadsheet would show the formulas).

ed

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) wrote:

- quote -

You can attach additional statements if your trades don't
fit. Most people don't trade so often that they overflow.

- quote -

What "kooky calculations"? Except for wash sales, the
calculations are utterly trivial. For each lot you subtract
the cost basis from the sales proceeds to get the gain or
loss. You sort your lots into long-term and short-term, and
total the gains/losses in each group.

If you otherwise have no trouble doing your own taxes, why
don't you get a program like TurboTax or TaxCut? You just
enter each sale into the program, and it will do all the
calculations for you.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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LaDonnaMemphis wrote:
- quote -


- quote -

"Use Schedule D-1 to list additional transactions
for lines 1 and 8."

Whether you can attach a spreadsheet printout (with all
the required information) in place of Schedules D-1 is
unclear to me. I've done it, and it clearly substantially
complies with the law, but whether the law and regulations
ACTUALLY authorize it is not at all clear.

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ladonnamemphis[at]wmconnect.com (LaDonnaMemphis) writes:

- quote -

That's what Schedule D-1 is for. It's a continuation sheet
with dozens of lines on it.

- quote -

You should be able to just do it yourself. The key point is
to not try to reason out what Sched D Part IV is trying to
do. Just follow the line-by-line instructions.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Each year, I make a few thousand (or more) in Capital Gains,
from individual investing in stocks. And, each year, I am
totally baffled in trying to make out that Capital Gains Tax
form. Also, why do they give you almost no room to show your
Gains? I traded XOM a dozen times last year, but the form
only has 3 or 4 lines on it. How could you possibly show
your real trades, if the IRS only provides for just a few
lines?

Where online or elsewhere could I go and have someone show
me how to work out and figure out those kooky calculations
specified on the Capital Gains form? I have been thinking of
phoning Tax Preparers (now, that it is "off season" for
them) and asking they what they would charge me to sit with
me and show me how to calculate that darn form?

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