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Pastimes Investor Accounting

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From: HIA	3/26/2007 2:18:18 PM
	of 19

'KBH Investor Accounting' features a year-to-date mark-to-market profit/loss accounting as a portfolio performance measure. The application also has a realized accounting of first-in-first-out transaction matching. Additionally, the application tracks the intermediate value of short positions and option writes. Here is the current user link to the application: kbhscape.com Overall, 'KBH Investor Accounting' has a Portfolio book, a Register book, a Mark-to-Market book, a Realized Accounting book, and a Transaction input book... The IRR-style profit/loss percentage is a KBH development that can be recognized as a version of a Modified-Dietz... Finally, a supplementary application is now available that simplifies user development of tax accounting continuation sheets...

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From: HIA	2/28/2009 2:50:11 AM
	of 19

Okay that's KBH Investor Accounting v1.5 And the application combines realized gain/loss with unrealized gain/loss to provide an investment performance measure. (Now mark-to-market traders can use this accounting if they do not carry any positions across the year-end. But there's a new basis adjustment feature...that has several different purposes...that does allows a trader to adjust the basis of a position carried across the year-end.) Also the application has an historical Register book, a current Portfolio book, a Transaction input book, a Realized book of itemized and matched realized transactions, and a Mark-to-Market accounting book of investment result. Of course every book and every aspect of the accounting in equal in weight and thus the application is professional in nature. Here's the user link to the application: kbhscape.com Now I just did a tax return with seven pages of D-1 . So I used the KBH Investor Accounting Supplemental Application to print out the Realized book in a form similar to the D-1. Well...I condensed some columns in width and then printed the text file in landscape orientation. Then I manually entered the data from the print-out into the D-1 saveable PDF's. It just goes very quickly. However...Adobe has applications and methods and web sites to convert the KBH text file into a PDF file...and so they might have a method of converting the KBH text file into the fields of the D-1 PDF.

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From: HIA	2/28/2009 3:24:28 AM
	of 19

Previous post corrected: Okay that's KBH Investor Accounting v1.5 And the application combines realized gain/loss with unrealized gain/loss to provide an investment performance measure. (Now mark-to-market traders can use this accounting if they do not carry any positions across the year-end. But there's a new Return-of-Capital feature...that has several different purposes...that does allows a trader to adjust the basis of a position carried across the year-end when combined with a balancing deposit or withdrawal transaction.) Also the application has an historical Register book, a current Portfolio book, a Transaction input book, a Realized book of itemized and matched realized transactions, and a Mark-to-Market accounting book of investment result. Of course every book and every aspect of the accounting in equal in weight and thus the application is professional in nature. Here's the user link to the application: kbhscape.com Now I just did a tax return with seven pages of D-1 . So I used the KBH Investor Accounting Supplemental Application to print out the Realized book in a form similar to the D-1. Well...I condensed some columns in width and then printed the text file in landscape orientation. Then I manually entered the data from the print-out into the D-1 saveable PDF's. It just goes very quickly. However...Adobe has applications and methods and web sites to convert the KBH text file into a PDF file...and so they might have a method of converting the KBH text file into the fields of the D-1 PDF.

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From: HIA	2/19/2010 3:54:32 AM
	of 19

This year I'm using the KBH Investor Accounting Supplemental Application to print out the realized trades in the one line format and then I'm constructing Schedule D continuation sheets with copy-and-paste and with text-file landscape printing. And the instructions for Schedule D do say that the tax filer can construct their own continuation sheets. Just keep the trades entered throughout the year and then at the end of the year all the trades print out. Just quickly mark the long-term trades on the print-out by reading the purchase date throughout the print-out. Of course the main purpose of KBH Investor Accounting is to track the investor's own enterprise result so that investor strategies can be confirmed or changed. Now KBH Investor Accounting is professional in nature in that all aspects of the program are equal in importance and operation. In all KBH Investor Accounting has a Portfolio book, a Register book of historical trades, a Mark-to-Market book of realized gain/loss combined with unrealized gain/loss, a Realized Accounting book of matched trades, and a Transaction input book.

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From: HIA	2/19/2010 4:31:34 AM
	of 19

This year I'm using the KBH Investor Accounting Supplemental Application to print out the realized trades in the one line format and then I'm constructing Schedule D continuation sheets with copy-and-paste and with text-file landscape printing. And the instructions for Schedule D do say that the tax filer can construct their own continuation sheets. Just keep the trades entered throughout the year and then at the end of the year all the trades print out. Just quickly mark the long-term trades on the print-out by reading the purchase date throughout the print-out. (If KBH Investor Accounting matches the brokerage statement each month, then at the end of the year the trades can be printed-out without mistake. However, the brokerage statement uses settlement dates while the IRS uses trade dates. So if inputting settlement dates, a trade date during the last three days of the year should also be given a settlement date on the last day of the year. Now if inputting trade dates instead of settlement dates, the brokerage statement can be confirmed by putting the month-ending value on a security to be sold during the last three days of the month. Then once the brokerage statement is confirmed, the trade can be closed out with the trade date and the trade price.) Of course the main purpose of KBH Investor Accounting is to track the investor's own enterprise result so that investor strategies can be confirmed or changed. Now KBH Investor Accounting is professional in nature in that all aspects of the program are equal in importance and operation. In all KBH Investor Accounting has a Portfolio book, a Register book of historical trades, a Mark-to-Market book of realized gain/loss combined with unrealized gain/loss, a Realized Accounting book of matched trades, and a Transaction input book.

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From: HIA	3/6/2012 2:15:00 AM
	of 19

There's an odd thing about the new 1099-B which is the accounting of buy and sale of stocks for the IRS. The wash sale amounts are included in the total cost basis. And then there is a total wash sale amount. Simple enough, just subtract the total wash sale amount from the total cost basis and have a correct accounting. Next the wash sale amount adds to the basis of the positions not closed out. Of course the positions not closed out are not included on the 1099-B. The problem is, say that the positions that had the wash sale amount added to their basis were closed out. In that case, the total cost basis includes both the wash sale amounts of the wash positions and the adjusted basis of the latter positions to correct for the wash sale. So, it might be expected that the wash sale amounts shouldn't be subtracted from the total cost basis since they don't ultimately apply. However, since the wash sale wasn't excluded from the total cost basis and the adjustment for the wash sale was included then ... just do the same damn thing as before ... and subtract the total wash sale amount from the total cost basis and have a correct accounting. Now if you want to do a correct line-by-line Schedule D and D-1 accounting then just subtract the wash sale amount of each position on the 1099-B from the cost basis of each position. Of course the gain/loss is zero for that position. But don't add the wash sale amount to the cost basis of the last position because that's already done ! And there's have another problem. The 1099-B doesn't match to the transaction confirmations or to the account statements but arranges the share numbers and amounts differently. So a month-by-month accounting might be used or might not be used. A least I can use my month-by-month accounting to check the bottom line. Also, I just took a quick look at the Schedule D for the 1040A and it hasn't changed. The total proceeds are reported just a before and it was always important to match that number on the Schedule D. But now the total cost basis is also reported and the total wash sale is reported. But the wash sale amount doesn't have a column on the Schedule D. So, as I said before, the IRS would have to subtract the total wash sale from the total cost basis to match the total cost basis as filed on the Schedule D. And, I'm saying do match the total proceeds of the 1099-B on the Schedule D but the total cost basis of the Schedule D should match total-cost-basis minus total-wash-sales of the 1099-B. Next, I took a look a the Schedule D instructions and I don't see anything new there. So the point is the new 1099-B and the new tax reportings.

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From: HIA	3/6/2012 2:21:47 AM
	of 19

Oh, if you enter the 1099-B into KBH Investor Accounting and adjust only the wash sale cost basis and that by subtracting the wash sale loss from it, then the Supp App will create a continutation sheet that can be edited and configured for the D-1 . Print it out in landscape orientation. kbhscape.com . .

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From: HIA	3/6/2012 4:18:53 PM
	of 19

No, there is a new 1040 Schedule D along with a required Form 8949 . [ THERE IS A NEW 1040 SCHEDULE D ALONG WITH A REQUIRED FORM 8949 ] So the cost basis of a wash sale position is entered as unadjusted on Form 8949. Then there is a column for adjustment to gain/loss where the wash loss goes . The Form 8949 has a total for sales price, cost basis, and adjustment to gain/loss. It doesn't calculate a line by line gain/loss like a Schedule D-1. And it has a column for a code letter along with the previously mentioned column for adjustment to gain/loss. The letter "W" is used for wash sale lines . KBH Investor Accounting doesn't currently have a Supp App to make a Form 8949. The Supp App output could be edited to make a letter-code column between security description and purchase date. And then the column of gain/loss could be used instead for adjustments to gain/loss . KBH Investor Accounting will add a Supp App output similar to a Form 8949 in a few weeks . For an IRS wash sale accounting, the input into KBH Investor Accounting should be the sales price and cost basis as shown on the 1099-B and then the wash sale adjustment to gain/loss would have to be manually added to the Form 8949 . The current Supp App is okay for traders-in-securities who use a Form 4797 and who aren't required to follow a wash sale accounting.

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From: HIA	3/6/2012 5:20:42 PM
	of 19

Also, as I said before and which was my intended subject, the new IRS wash sale accounting can't be based on an accounting of transaction confirmations or on monthly statements but must be based on the 1099-B . That's because the new 1099-B doesn't adjust the basis of the wash position but leaves that to the Form 8949 . However, the 1099-B does adjust the basis of the later position to correct for the wash sale adjustment .

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From: HIA	3/7/2012 9:15:12 PM
	of 19

I might as well keep going on this Form 8949 subject. If there are any wash sales listed on the 1099-B then just input the 1099-B into the IRS 8949 pdf that can be saved. The reason for this is that while the wash sale is noted on the 1099-B and then the adjustment performed on the Form 8949, a future correction of the wash sale is not noted on the 1099-B but simply the cost basis is adjusted without note. (I did send the IRS a comment E-Mail and asked them to change the Form 8949 such that all cost basis adjustments would be performed on the form.) A couple of techniques to make input into pdf 8949 easier would be copy and paste of dates and input of numbers without commas so that the keyboard number pad can be used. Then the month-by-month accounting that is based on brokerage statements or on transaction confirmations is only used as a partial checking of the tax accounting. Now if there are no wash sales on the 1099-B then the user might want a KBH Supp App that would output the month-by-month (or transaction-confirmation-by-transaction-confirmation) accounting in a form similar to 8949 so that the user could make their own forms. And okay, I can add that in a week or two. But if the user does make their own 8949 just note that it has to include the check-boxes. If the user files with Form 4797 then this new Form 8949 doesn't apply.

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