[scolar]

Does someone know, which tax software (either desktop or online) allows to import 5000 trades? TurboTax Premier seems to have 3000 records limit (it clearly says so on txf import), H&RBlock At Home doesn't say that, spends enormous time on import and silently imports first 3000 records.

[AtlantaTaxExpert]

You are attacking this problem the WRONG way.

1) Download your trades into a spreadsheet, then consolidate them into LONG-TERM and SHORT-TERM trades (this assumes that you had SOME long-term trades).

2) Then determine, for the long-term trades, the total PROCEEDS and BASIS for ALL of the long-term trades.

3) Then determine, for the short-term trades, the total PROCEEDS and BASIS for ALL of the short-term trades.

4) Enter ONE transaction called LONG-TERM GAINS/LOSSES for Item #2. Put the EARLIEST purchase date for the date you bought the stocks and put the LATEST settlement date for the date you SOLD the stocks.

5) Enter ONE transaction called SHORT-TERM GAINS/LOSSES for Item #3. Put the EARLIEST purchase date for the date you bought the stocks and put the LATEST settlement date for the date you SOLD the stocks.

Once you enter this information, your Schedule D SHOULD reflect your LONG-TERM gain/loss and your SHORT-TERM gain/loss, and the total gain/loss should transfer to Form 1040. MAKE SURE these figures match up with the year-end summary from your brokerage account. If there is more than ONE account, then reconcile to make sure that the Schedule D accurately reflects the gains/loss on ALL accounts.

Efile the tax return; it should go through no problem.

When the efile acceptance notice is received, it will have a transaction number on it. Transfer that transaction number to Form 8453 in your tax software. Print off that Form 8453, then print off (in landscape mode) the spreadsheet that shows ALL of your trades. Format the prinout to show your name and SSN on each page of the print-out.

Attach the Form 8453 to the printout and mail it to the IRS. The software should have the mailing address, but if not, go to www.irs.gov and download the Form 8453 instructions. The mailing address will be in the instructions.

Note that, if you have only ONE brokerage account and your year-end summary accurately reflects your trades, you can print off the Form 8453 as noted above and simply attach it to the year-end summary, then mail in the Form 8453 and the year-end summary.

Have done this multiple times over the past FIVE years for various clients, and the IRS accepted the mailed-in spreadsheet or year-end summary EVERY time.

That includes a day trader who did over 14,000 trades worth over $78 MILLION dollars in proceeds in 2007. The printout was almost two inches thick and had to be mailed using a PRIORITY MAIL FLAT-RATE box.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.