(This article contains information for Snider Investment Method Alumni.)
In the coming weeks and months, all of us will be undertaking the annual ritual of filing our tax returns. Filling out the appropriate IRS form is difficult enough when all we are addressing is our income from our chosen profession; needless to say, things get even more complicated when we factor in the income that we receive from our investment portfolios.
Fortunately, the good people at Ally Invest have created a tool to help you simplify the process of collecting, sorting, and analyzing your trading data to give you a clearer picture of your financial year, and to help you determine how much tax you will owe. This tool is the Maxit Tax Manager.
The Maxit Tax Manager will assist you in keeping track of your portfolio in a number of different ways. Among the functions that are offered by Maxit are:
- Automatic adjustments for “corporate action events”; these include mergers, spin offs, stock splits, and wash sales. These auto adjustments will help you to accurately maintain the cost basis in your portfolio.
- Managing each of your share “lots” (the number of shares you purchased in each specific transaction, along with that transaction’s cost basis), and implementing a tax strategy that will be the most beneficial to you, based on the activity that occurred in your portfolio in a given year.
- Taking a “Gain/Loss Snapshot” to see the performance of your account up to the present.
- Generating Unrealized (for open positions) and Realized (for closed positions) Gain/Loss Reports
In addition to the above, Maxit will also generate a complete Schedule D and Form 8949 for your tax return. Best of all, use of Maxit is free for all Ally Invest account holders.
Keep in mind that you will need to have an account with Ally Invest in order to use the program. Stay tuned to future blog posts as I create step-by-step instructions on creating your tax documents for 2022. This can only be done after Ally Invest publishes your 1099. This is scheduled to be done by mid-February of 2023.
Have any further questions? Feel free to contact us at 214-220-0055 or email us at firstname.lastname@example.org. Please keep in mind we are not tax professionals. It is always wise to consult a tax professional to confirm the rules and regulations in regard to your specific tax situation.