Ask a CPA

On traditional IRA's, the gains realized over the years in the form of capital gains, dividends, and interest are deferred and not taxable until you take IRA distributions. When you do take the IRA distribution, the amount is considered ordinary income and taxed as such, and not taxed as capital gains.

The tax laws' "wash sale" provisions prohibit you from recognizing any loss from the sale of buying and selling substantially the same stock within 30 days of selling a stock.
If you incur a gain within the 30 day period, the "wash sale" provisions do not apply and gain is reportable on IRS Schedule D.

If you owned shares of stock that were converted to another company's shares of stock at a later date, and you then subsequently sell the new company's stock, then the holding period starts the day after you bought the original shares of stock in the initial company.

A Day Trader can classify his or her activity as a business reported on IRS Schedule C. This business is not limited to a annual capital loss limitation of $3,000. There is no limitation to the losses that may be incurred by Day Trader's business. Expenses for such things as computer equipment, supplies, margin interest, or software that might have been limited to 2% AGI limitations on IRS Schedule A can now be taken in full on IRS Schedule C. Also, a Day Trader may use the market-to-market accounting method for his or her portfolio. This will allow recognition of gains or losses before the gain is realized on the sale of the security.

A Day Trader is required to report his or her business activity on IRS Schedule C. Any income from the business is subject to both income and self-employment taxes. There is also a strict accounting/bookkeeping requirement. The Day Trader must segregate investments into 2 separate groups, trading securities and investment securities. Gains and losses from investment securities are reportable on IRS Schedule D. Gains and losses from trading securities are reportable on IRS Schedule C.

The Section 475(f) market to market election must be made by the due date of the previous year's tax return. The trader's short-term capital gains or losses are converted into ordinary income or loss. Losses that otherwise would have been limited to $3,000 are fully deductible against ordinary income in the current year. This election should be discussed with your local CPA.

If you cannot get a duplicate W-2 from your employer, your local CPA can use Form 4852, substitute W-2 to reconstruct your salary and use it for your tax return.
A copy of Form 4852 should be sent to the Social Security Administration to help ensure proper credit of the Social Security taxes.

If your only capital gains are your Form 1099-DIV box 2a, capital gain distributions, then Schedule D is not required to be filed. You will enter the 1099-DIV box 2a amount on IRS Form 1040 line 13.

Even if the marijuana is legal under your state law, the cost of the marijuana that was prescribed by your doctor is not an allowed medical itemized deduction.

The costs of your maternity clothes are not deductible.