Non-Immigration: Tax for Stock Transactions

[OmGV]

Apologize for posting this here.
Last year I did a lot of stock transactions. But more or less, I was using the same amount of money and repeatedly buying and selling. But the broker has sent me a statement asking me to report all the proceeds as Income?
Since, I used to the same amount of money to buy and sell several times, each time making a small amount of profit, shouldn't I be paying taxes just on the net gain?
For e.g.,
If I bought stock for 3000 dollars and sold it for 3300 dollars and repeated the same process again, wouldn't i be paying taxes just on the 600[300+300] gain, but my borker is reporting 6600 [3300 + 3300] as proceeds. So I am confused.
Can somebody advise me as to how this works?
TIA

 

[SWaiting]

OMGV,
the broker is just going to report the SALES on the form. They dont even report the buying price...

Now what you need to do is the complicated part..

If you have bought the same stock and sold it over a few times, you have to check the wash sales procedure...

If you use Quicken or something it makes much easier to transfer that info to Turbotax...

From my last 2-3 postings on tAX, I have started sounding as a salesman for Turbotax, but if you have quicken and Turbotax it really helps out...

Plus you need to invest 20$ on the wash sales calculation software if you had any wash sales..

gooduck

 

[OmGV]

Thnx Much......

I am using Turbotax for the web. I did buy and sell the same stocks several times. So, turbotax would assist me with that, as I don't have that data in Quicken. My broker has sent me the statement, that's it. I appreciate your reply.

 

[gambler]

I have just one doubt.
How do you make money in stocks ? I only manage to lose

 

[NJGC04]

OmGV
You are not alone. I also need to figure that one out although I did not buy/sell anything, my wife did.

 

[OmGV]

Using Turbotax, it is a little helpful.

But this process is really complicated and time consuming. But at some point of time, I have to figure out. I am also trying other software like HR Block online and TaxACT. I will post if I find a easier way.

 

[Edison]

Re: Using Turbotax, it is a little helpful.

Originally posted by OmGV
But this process is really complicated and time consuming. But at some point of time, I have to figure out. I am also trying other software like HR Block online and TaxACT. I will post if I find a easier way.

You can download your transaction details from some stock broker to turbo tax.

 

[san_1]

I don't think there is any issue with wash sale rule if you made profit on your transactions.

If you made a loss that is when the rule kicks in. That too if you bought the share back within 31 (or 30) days of selling the stock on loss.

Also the income is the thing you have to report and pay taxes on. So it should $600 in your case.
I think you will need to report the sale price/purchase price etc also but the tax is only on net gain (or loss when you have to think about wash sales).

 

[OmGV]

Originally posted by san_1
I don't think there is any issue with wash sale rule if you made profit on your transactions.

If you made a loss that is when the rule kicks in. That too if you bought the share back within 31 (or 30) days of selling the stock on loss.

Also the income is the thing you have to report and pay taxes on. So it should $600 in your case.
I think you will need to report the sale price/purchase price etc also but the tax is only on net gain (or loss when you have to think about wash sales).

Thanx for the info san_1.

 

[dsatish]

Turbotax makes it very easy to enter these stock transactions. I have done it a few years back. It's very simple. I am not sure how good is HRblockonline for stock transactions, but it is better than turbotax in all other ways. You may get more refund using HRblockonline .

 

[SWaiting]

OMGV,
if you buy quicken now, you can still download all your transactions into Quicken...

goodluck

 

[sn99]

It is not difficult to report profits on Tax form ( yeah making profit in stock market is difficult).
In Turbotax (or other software), you have to enter buying price and selling price. Off cource you pay taxes on profits only.
Wash sale arises when you sell a stock at loss and buy the same stock within a month. So be careful while you buy same stock which you sold for a loss.