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

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.

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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