Stock Markets Exposed

How do I file for my tax return if I put money in the stock market?

I currently some unrealized losses, and I believe by last April when it was tax time, I had pretty much broke even in terms of realized gains and losses, and had all the money back in the market. Rather than paying an accountant, how could I file for my tax return myself, what special forms would I need if I have money in the stock market?

Public Comments

1. You have to sell the stock and actually realize the loss before it will be something that goes on your tax return.
2. You really don't have a loss then until it is realized. If you sold the holdings in the middle of the year and had a capital loss, then you can deduct this on your taxes (I would recommend itemizing $3000 per year and you can prorate this over the next several years until it is all itemized). If you did not sell though, you can't deduct anything.
3. It's the sales that cause you to file the tax return. 1040 with schedules D and D-1 attached. (D-1 is the continuation page). You *must* do the form. If you don't, the IRS only knows what you sold the stock for and puts down $0 as your basis.
4. Losses only affect your tax return after they are realized, when you sell.