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I. Overview:
Start by selecting a tax year of interest.. Use the
following filter...
Date Range Type: "Year & Tax Period"
Year: The current tax year
Period: All
II. Reconciliation Summary:
View this dialog to determine the reconciliation work
needed...
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Select "Reconcile Gain/Loss"
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The following summary appears:
III. c) & f) Ungrouped
Sales Reconciliation:
Here is an video that shows how to use the filters and
determine why a trade is not grouped -
Show Video.
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Within the dialog select "Show Details" for item
"c" or "f" or
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Select the filter manually and choose a view...
Screen: Groups
Display Mode: "All Symbols..."
Display View: "Not Grouped - ..."
Comment:
TAPro matches trades into groups using FIFO. If
trades are missing or incorrect then they are omitted from the Tax Reports
and appear as ungrouped. Each time a trade is added or modified TAPro recalculates
the groups and Tax Reports. Use File/Save As to create a backup copy
then experiment. You can always load the backup and restore the
prior state.
Trades are ungrouped because of the following reasons:
-
They don't exist - Enter trades from the Transactions
Screen or import more data.
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They exist but have incorrect times (sold before opened) -
use Tools/Smart Time to fix
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They exist but have incorrect actions (like Sale
vs. Short Sale) - use Tools/Long Short Discovery to fix. Or manually
edit the trade from the Transactions screen.
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The trade is an option - use Tools/Options - Automatic
Exercise/Assign/Expire to close.
IV.
Missing Opening Trade Reconciliation:
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After step III assume you see the following:
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Trades "1" and "2" are "Closing" trades with missing "Opening" trades.
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To confirm our assumption use the Transactions
Screen....
Screen: Transactions
Display Mode: "By Symbols..."
Display View: "Positions & Corp. Events ..."
Comment:
It appears the Buys are missing. You can add them
manually. Use Edit/Transaction(s) - Add/Modify...
V.
Missing Closing Trade Reconciliation:
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After step III assume you see the following:
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Trades "4" and "5" are "Opening" trades with missing "Closing" trades.
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To confirm our assumption use the Transactions
Screen....
Screen: Transactions
Display Mode: "By Symbols..."
Display View: "Positions & Corp. Events ..."
Comment:
It appears there are no "Closing" trades for the option.
Also notice there is a Journal Out Closing trade which brokers use to
indicate an Exercise/Assign/Expire event. Review the next set of
instructions (VI) for details about how to close options in bulk (many at
one time).
VI.
h) Remove Reminder Transactions:
Reminder transactions are created during "Sync" import when
there is not enough information for TAPro to automatically generate
correct closing trades for options. Here is a 1 min. video of how to
manually deleted Reminders -
Show Video.
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Find all Journal Out Reminder Transactions
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Select Show Details next to h) in the Summary dialog
or use the following filter....
Screen: Transactions
Display Mode: "All Symbols..."
Display View: "Reminders"
-
Select and delete one at a time or select the first one,
scroll to the end and use shift click to select the entire list.
Then select Delete.
VII.
Closing Options Many At A Time Using TAPro Tools:
After using step VI to remove Reminders use the following
tools to close options. Here is a 1 min. video of the process -
Show Video.
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Select Tools/Options - Automatic Exercise/Assign
Dialog...
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Use Find to select the account of interest.
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A dialog similar to the following appears.
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Use the check boxes to decide how to close the options
(Exercise, Assign, Exp).
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If the Expiration dates are correct (see the Required
Options Information below) then the dialog will show the correct
Exercise and Assign/Expiration dates. In some cases you can edit
the date in this view.
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When satisfied with your selection, select "Update".
Comment:
We recommend using Expire for all options because the math
result is the same assuming you have the additional trades associated with
an Exercise (contracted Buy) or an Assign (contracted Sale).
VIII.
Closing Options Manually Using TAPro Tools:
After using step VI to remove Reminders use the following
tools to manually close options.
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Select Tools/Options - Manual Exercise/Assign Dialog...
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A dialog similar to the following appears...
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This dialog allows you to apply a basis adjustment to an
opening trade if necessary.
IX. Required Option Information:
TAPro Option tools reference Symbol information. If
Sync import is used this information is provided. If manual import
is used then add the missing information manually.
The Assign/Exp date used by TAPro to Expire options comes from the data found in
Edit/Symbol(s) - Add/Modify. If an options symbol is recycled each
year the data might have the date associated with the current year vs. the
correct date, check this.
Here is a 1 min. video of how to correct an Expiration date or
edit symbols
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Show Video
X. FIFO Trade Matching/Groups Rules:
Grouped
trades (tax lots) conforming with these rules will appear in TAPro Tax
Reports.
General Rules:
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Opening and Closing Trades are the Same Display Symbol
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Opening and Closing Trades are in the Same Account
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For each Closing Trade, an Opening Quantity is available
that is not grouped
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The Date and Time of the Opening trade <= the Date and Time of the
Closing trade
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The Tax Calendar has not expired.
Note: If the Tax
Calendar has expired then tax lots after the expiration date will not
appear. In this case update TAPro with a new license key.
Rules for Actions:
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"Buy to Open" Call groups with "Sale to Close", "Exercise" or "Expire"
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"Sale to Open" Call groups with "Buy to Close", "Assign" or "Expire"
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"Buy to Open" Put groups with "Sale to Close", "Exercise" or "Expire"
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"Sale to Open" Put groups with "Buy to Close", "Assign" or "Expire"
Additional Rules for Options:
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To Exercise an Option, must be a Call and the Exercise Date
< Assign/Exp Date
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To Assign an Option, must be a Put and the Assign Date =
Assign/Exp Date
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To Expire an Option, The Expiration Date = Assign/Exp Date
XI. Summary:
You can also save a copy of the data, experiment then restore the saved
version. TAPro is flexible. You can enter trades in any
order and you can apply views and sorts without changing the data.
You can edit any trade from the Transaction Screen.
To resolve not grouped trades try one of the following:
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If there is a missing opening trade,
find the missing trade by looking at your statement or on-line account
and manually added it to the “Transaction Screen” by clicking “Add.”
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If there is a “Sale” before a “Buy”
there may be an undiscovered “Short Sale”. Use “Tools/Long/Short
Sale Discovery…” to fix this. Or manually change the "Action" of
the trades from
the "Transaction Screen" buy using Modify.
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If you trade options you may find
that closing trades are missing. This is because the file didn’t
contain an “Exercise”, “Assign” or “Expire” trade to close the options.
Visit “Tools/Options…” for a list of tools to help with this either one
at a time or in bulk.
XII. Customer Comments:
Q1: "Just downloaded data from my broker Interactive
Brokers in qfx format. I have over 3,000 ungrouped sales since the "time"
for every transaction seems to be imported as 8:20 PM (20:20). Does TAPro
consider time when trying to group transactions and if so, what's the best
way to import data from IB to have time considered."
A1: Yes TAPro uses Date, Time and Action to determine when
it applies FIFO to create groups. In addition TAPro uses the trade
ID field to determine if a trade is unique. As of February 2008
there are reports that IB generated .QIF files contain the same time and
duplicate IDs. For a work around please visit the FAQ page and
search for "same time" -
Click Here.
Setup >>
Import
>>
Analyze >>
Reports >>
Export to 3rd Party Tax
Software
Training Videos (with voice):
Click
Here
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