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I. Overview:
Each time a trade is added or modified TAPro recalculates
groups and the Tax Reports. For TradeStation we have noticed cases where
trades on the same day have the same time "12:00".
This means it is impossible to discover the exact matching order by
looking at the time. This results in "Not Grouped" trades and an
incomplete "Tax Report".
You can allow TA to match the trades or you can adjust the
time so the trades will match. See section III below for more
details. See the Match/Group rules at the
end of this document for details regarding groups and rules.
II. Reconciliation Summary:
To get an overview, start by selecting a tax year of
interest. This provides an idea of where to start. Use the
following filter...
Date Range Type: "Year & Tax Period"
Year: The current tax year
Period: All
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Select "Reconcile Gain/Loss"
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The following summary appears:
III. c) & f) Ungrouped
Sales Reconciliation (Same Time):
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 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 into groups. 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.
TAPro matches trades into groups using FIFO (First In First
Out). If
trades are missing or if the "Actions" are incorrect then they are not
grouped and are omitted from the Tax Reports.
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). If the actions
are incorrect (like Sale
vs. Short Sale) TA can't group the trades.
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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 ..."
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.
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: At any time you can edit any trade or
add missing trades (Edit/Transaction(s) - Add/Modify...).
This is useful in case you only need to edit the time and change the
"Action" so the opening trade is before the closing trade and the actions
are correct.
Solution 2: To automatically correct the "Action" so
TA can group the trades, 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.
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"
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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.
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.
Setup >>
Import
>>
Analyze >>
Reports >>
Export to 3rd Party Tax
Software
Training Videos (with voice):
Click
Here
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