6. End the tax year

End current tax year - make adjustments for next year:

 

After all trades executed during the tax year have been imported and matched correctly, you are ready to run the File, End Tax Year function to "close the books" on your data file for the current year.  

 

Please see Lesson 12 - Ending the Tax Year in our Online Tutorial for a step-by-step discussion of how to use this function in TradeLog®.

 

All trades executed in January of the following tax year should also be imported prior to running the End Tax Year function.   For example, if you are working on tax year 2007, you will need to import your trades up to the end of January 2008.   The January of next tax year data enables TradeLog to calculate wash sales and defer losses to the following tax year where applicable.   DO NOT import January of next tax year trades if you have elected mark to market.

 

If you have several different brokerage accounts, you must combine these into one account so that TradeLog® can calculate wash sales across accounts.

 

Use the File, Combine menu item.   Then run the File, End Tax Year function from the combined account to create your individual next tax year data files complete with your open positions carried over to next year, any was sale deferrals, and your Jan trades.   Do not run File, End Tax Year from the individual broker data files.

 

Special instructions for those who have elected Mark-to-Market:

• DO NOT import your January of next tax year trades.

• NO NOT combine files.

• Run the File, End Tax Year function from each data file for each account.

Please see Ending the tax year using MTM in our Comprehensive User Guide for details.

 

For your convenience, all versions create new data files for each account for the following tax year and copy all necessary adjustments into these new files.

 

Please see End Tax Year in the Comprehensive User Guide for more details.

 

You are now ready for step 7: Run the G/L report