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Do I have to list every single day trade on Form 8949?

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What is the name of your state?Nevada
I'm filing past tax returns for a deceased relative.

Off and on was a day trader for months at a time, then he watched TV for months at a time.

Some years he had 250 trades thru several big online trading firms.

SO the question is, can I just list in Form 8949 the summary amounts contained in stock brokerage's statements or do I have to enter every single trade?

That's alot of work, I never trade stocks, this is the 1st time I've filled out a Form 8949. Thanks
 


LdiJ

Senior Member
What is the name of your state?Nevada
I'm filing past tax returns for a deceased relative.

Off and on was a day trader for months at a time, then he watched TV for months at a time.

Some years he had 250 trades thru several big online trading firms.

SO the question is, can I just list in Form 8949 the summary amounts contained in stock brokerage's statements or do I have to enter every single trade?

That's alot of work, I never trade stocks, this is the 1st time I've filled out a Form 8949. Thanks
Yes, you can just enter the summary amounts. Then, you would make a copy of the brokerage statement and send it to the IRS with form 8465.
 

LdiJ

Senior Member
There are special rules for day traders. See IRS Topic Number 429:

https://www.irs.gov/taxtopics/tc429
I don't think that 250 trades is enough to qualify him as a trader, even though the OP used that term...and 250 was his max number.

I do not think that is substantial under the definition of substantial for a day trader, and its does not appear that he carried it out with continuity and regularity.
 

Taxing Matters

Overtaxed Member
I don't think that 250 trades is enough to qualify him as a trader, even though the OP used that term...and 250 was his max number.

I do not think that is substantial under the definition of substantial for a day trader, and its does not appear that he carried it out with continuity and regularity.
I agree that it's rather unlikely that the trades were sufficient to meet the definition of substantial, though I hesitate to say that with certainty since I don't have all the facts of the trading activity. The thing is that the real difference that it makes whether he is a trader or simply an investor occurs if the OP had a net loss from the trading. If he met the definition of a trader then the losses would be deductible against other income. But if he was merely an investor then the net loss that he can deduct against other income is limited to $3000.

The other difference is that the trader may elect to use mark to market and the investor can't. But to do that requires making an election no later than the due date of the previous year's return, which means that the OP would have had to make that election by April 15, 2018 to use mark to market for 2018 and I'm going to bet that wasn't done.
 

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