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econciliation/Alerts and Short Term Trades in Long Term Schedule D
Posted by Henry Gage on 26 March 2011 10:35 PM
Regarding: Reconciliation and Short Term Trades in Long Term Schedule D

Background:
I have 2 issues with the schedule D-1. This is for equity only transactions, with wash sales turned on in the latest 3.7.00 version of TAPro. There were 3 corporate events (reverse splits) which I have input per the instructions. Also I have included pertinent opening trades from past years and also all trades through March 13th of 2011.

Question 1:
First, the reconciliation fails at Step 7 (Gain/Loss reconciliation). I am not sure how to resolve this.

Answer 1:
From within the Reconcile Gain/Loss dialog when you click on the Help link and then select analyze, it leads to this page. Follow the steps for fixing the Alerts.

http://www.tradeaccountant.com/html/analyze.html

You may want to start by selecting File/Save As so you can return to this point.

You can experiment to find the best way to fix trades (maybe one of the tools will fix most - Tool/Reconcile - Best Fit). Or one of the other bulk mode tools like Tools/Sequence Error Discovery. To know which approach is best, read a few of the alert messages. While looking at alerts (Transaction Screen: Display View: Positions Reconciliation) you can use right mouse to show a menu of quick tools that allow you to adjust time, edit the trade, adjust long/short etc.

Question 2:
Second, when I generate the Schedule D1 the software is putting a number of transactions that are clearly short-term in the Long term Capital Gains/Losses bucket as you can see clearly.

Answer 2:
Regarding trades that appears as short term but are listed in the long term. This is due to Wash Sale. To see the affect select View/Properties/Date Preference and set wash adjusted date on look at the report then off and look at the report.

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