TDA using the last trade price of a contract rather than mark-to-market

Ron Bertino

Administrator
Staff member
Steve S. said:
Anyone who still cares about TDA mark to market accounting on the 1099-B unrealized p&l: They finally got back to me on my inquiry, and told me what I expected to hear ... they contract settlements out to Gainskeeper, Gainskeeper uses the last trade price no matter how many days old it is, and that's the end of the matter. So if it looks like you are paying taxes on $100,000 of fake unrealized p&l (or whatever dollar figure is enough to get you annoyed), the only option that I know of is to settle your book yourself in an "IRS-reasonable" way (for example, use the TDA settlements on your Dec 31st statement), add adjustment lines to your Form 6781, point to an explanatory attached note, and wait for a possible follow-up letter from the IRS.

And if you have the opposite situation where you are NOT paying 2018 taxes on $100,000 of true unrealized p&l, be prepared to pay up on your 2019 taxes ... it all washes out over a period of 2 tax years.
 

Ron Bertino

Administrator
Staff member
gniewosz said:
Thanks @topdrudge for report of your struggle. I've seen some traders dealing with this issue by doing small, 1 lot trades at the end of Dec where they had sizable positions, just to create more reasonable Last print. I don't think they were as big as you are. Mid print can be also inaccurate. I decided to use TradeLog this year, didn't dive in to soft yet but from brief overlook I can tell it is well written and well thought piece of code. Not sure about tax code correctness but didn't hear any complains - on contrary. I hope to avoid hours of investigation this year.
 

Ron Bertino

Administrator
Staff member
Ady said:
As long as I don’t end up losing net over two years I guess the path of least resistance is to just ignore it?


Steve S. said:
Ady If the amount of money/taxes doesn't bother you then definitely ignore it. It's only an issue if you are going to be paying 2018 taxes on fake MTM "profits" you never made, and the amount of those taxes is enough to seriously irritate you, even though you know you will get it back on your 2019 taxes.
 
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