Simplify Schedule D

Some of the most time-consuming tax returns I have prepared have been the ones with several stock market transactions. Since I do charge by the time I spend, these have been extremely expensive for my clients. With the growth of the volume of day trading, this will just be even more trouble next year.

Much of the time is spent sifting through stock broker reports trying to match up both sides of the deals (purchase and sale). There are a few stock brokers that actually put that info in a very easy to follow side by side year-end report. However, most don’t do that simple task.

Both for my clients and anyone else interested in reducing their tax preparation costs, I have prepared this basic Excel spreadsheet that can be used to assemble the data required for Schedule D. It can be filled in on the computer and then sent to your tax preparer via email or printed out and completed by hand.

Unfortunately, most tax preparation programs (including my Lacerte) don’t have the capability to import the data directly from the Excel file; so we will still have to key it in. However, having the data this well organized will save your tax preparer huge amounts of time.

KMK

Beware of Trusting the Web

With the long overdue shakeout of online companies and the daily demise of one dot-com after another, it reinforces a concept I have always believed in, self sufficiency.

There has been a growing trend for what are called ASPs (application service providers) on the net. On the face, they seem to be very convenient, providing services for a growing number of tasks, such as bookkeeping (e.g. NetLedger), timekeeping (e.g. Timeslips), scheduling (too many to list). The weak link in relying on these companies, besides the occasional inability to use their services due to temporary outages (such as has been the case with this Blogger service), the larger risk is that the company will just fold up, leaving you high & dry. That’s why I am still recommending that you use a program that runs on your own computer for bookkeeping, such as Quicken or QuickBooks.

I don’t mean to rain on anyone’s parade in regard to new and creative usaes of the Internet. I have always applauded that. However, I have to be honest in assessing the risk inherent in entrusting one’s financial and other critical data to someone that may or may not be around in the future.

KMK