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I. Overview:
TAPro is a database with filters, reconciliation tools and build in
reports. First review the Security Master and Required Option
Information at the end of the section. Then continue with section
II. You can edit trades in the Transactions Screen. Use Tools
to correct common data errors.
Each time a trade is added or modified TAPro recalculates
groups and Reports. You can enter trades in any order and TAPro
matches them using FIFO (First In, First Out). See the rules at the
end of this document. If trades are missing or if the "Actions" are
incorrect then they are not grouped and are omitted from the Tax Report.
Tips for correction are provided.
You can retain data for multiple years and select the date
range of interest by using a filter. TAPro selects the closed trades
for the period and generates a report, other data is not affected.
II.
1099 Sales Total:
If you are focused on creating a Schedule D, we recommend
first confirming that TAPro has all of the Sales transactions. The
following view shows a total for all sales:
Date Range Type: "Year & Tax Period"
Year: Tax Year of Interest
Period: All
Screen: Transactions
Display Mode: All Symbols
Display View: Sells - All
If the total that appears above the Amount column does not
match your 1099 then obtain a set of data that includes all of your sales.
Use the Reconcile Gain/Loss tool to reconcile the data and find what is missing.
III. Reconciliation:
To get an overview, select Reconcile Gain/Loss.
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Select "Reconcile Gain/Loss"
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Use the following filter:
Date Range Type: "Year & Tax Period"
Year: All
Period: All
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Next change the filter to the tax year of interest.
Date Range Type: "Year & Tax Period"
Year: The current tax year
Period: All
IV. Ungrouped
Sales Reconciliation (items c & f):
Here is an video that shows how to use the filters and
determine why a trade is not grouped -
Show Video.
Here are the typical reasons for ungrouped trades:
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The Opening Trades is Before the Closing Trade or has the
same time (12:00). Use: Tools/Smart Time.
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The Action is incorrect (Sell vs. Short Sell etc).
Use: Tools/Long Short Discovery
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Options that are Exercise/Assign/Expired but not closed.
Use: Tools/Options Automatic
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Missing Buys or Missing Sales. Manually
add or import the missing trades.
Not Grouped Details:
Within the dialog select "Show Details" for item
"c" or "f" or select the following filter...
Screen: Groups
Display Mode: "All Symbols..."
Display View: "Not Grouped - ..."
If this view shows trades then something is stopping TA
form automatically matching them. You can print this screen for
reference or return to it when needed. Make a note of one of the
symbols then proceed to the next step.
Incorrect Time Details:
If trades are imported with
incorrect times in some cases they appear to be closed (Sale or Buy
to Cover) before they are opened (Buy or Short Sale).
Select the following filter...
Screen: Transactions
Display Mode: "By Symbols..." if you have a lot of
symbols
Display Mode: "All Symbols..." if you only have a
few symbols
Display View: "Positions and Corporate Events ..."
Select one of the trades and look at the details by using
double click on the trade or select the Modify button. Notice the
time of the trade is "12:00". When the times are the same then the
data does not provide guidance on the order to match the trades.
Solution 1: Use Tools/Smart Time
Solution 2: Alternatively use Edit/Transaction(s) - Add/Modify
or double click on the trade while in the Transaction screen. This
is useful in case you only need to edit the time
Notice in this example the data has "Buy to Cover", which
is a short cover trade and "Sale" which is a long closing trade.
TA can't group these trades. If the actions are incorrect (like Sale
vs. Short Sale) TA can't group the trades.
Solution 3: To automatically correct the "Action" use Tools/Short Long Discovery. This
will adjust a large quantity of trades for sequence errors and change the
"Action" so TA can group the grades.
You can ignore the
Reconciliation warning message.
Using this tool has no affect on the overall gain/loss
unless a short sale remains open at the end of the tax period. In
the example above if this tool is applied the results are as follows and
the groups appear in the tax reports.
V.
Missing Opening Trades:
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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 this filter....
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 or click
on the Add button while in the Transactions screen.
VI.
Missing Closing Trades:
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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).
VII.
Remove Reminder Transactions (item h):
Reminder transactions are created during 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"
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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.
VIII.
Closing Options Many At A Time Using TAPro Tools:
After Reminders and Journal Out Options are removed, use the following
tools to close options. Here is a 1 min. video of the process -
Show Video.
Note, also see the section below on Required Option Information.
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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".
(the dialog layout might differ from this picture but the
concept is the same).
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).
IX.
Closing Options Manually Using TAPro Tools:
After using step VI to remove Reminders use the following
tools to manually close options. Note, also see the section below on
Required Option Information.
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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.
X. Security Master and Required Option Information:
Use Edit/Symbol(s) - Add/Modify and review the Security
Master information.
With any tool, correct underlying information is required.
When a symbol is first imported, review the security master to confirm the
setup is correct. TAPro uses this information for all transactions.
For example, TAPro Option tools reference Symbol information.
Review and complete the options details before reconciling
options. 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
XI. 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
XII. 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.
Setup >>
Import
>>
Analyze >>
Reports >>
Export to 3rd Party Tax
Software
Training Videos (with voice):
Click
Here
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