Either of the third-party applications described below may help you to track and manage capital gains and account for the cost basis implications of wash sales and corporate actions in your portfolio.
GainsKeeper® is designed to save investors time and aggravation when tracking cost basis information and help manage gains and losses in their investment portfolios. GainsKeeper’s tools include:
- Automated wash sale and corporate action processing. GainsKeeper helps identify and calculate wash sales and corporate actions and automatically adjusts cost basis.
- Schedule D functionality. GainsKeeper tracks capital gains throughout the year and helps investors to generate a Schedule D.
- Tax-smart trading strategies. Investors may increase after–tax returns, maintain investment objectives, generate pre-trade analysis, and avoid wash sales by using GainsKeeper's portfolio optimization tools.
Fidelity customers receive 25% off GainsKeeper subscriptions. Enter promotional code FIDELITY when subscribing to get your discount.
TradeLog® is a tax accounting software designed specifically for the complex tax reporting requirements of active traders and investors.
TradeLog features include:
- Wash Sales, Capital Gains, Schedule D all handled quickly and accurately for IRS reporting.
- Simple to use, fully automated, yet extremely powerful.
- The brokerConnect feature makes importing available trade history from your Fidelity account easy.
- Comprehensive portfolio management and trade analysis tools.
- MTM version for Traders using mark to market accounting method.
- FREE TRIAL VERSION – Try TradeLog® for free.
20% Instant Rebate for all Fidelity clients!
FAQs
Wash Sales, Capital Gains, Schedule D all handled quickly and accurately for IRS reporting. Simple to use, fully automated, yet extremely powerful. The brokerConnect feature makes importing available trade history from your Fidelity account easy. Comprehensive portfolio management and trade analysis tools.
Does Fidelity track cost basis? ›
Fidelity offers you the convenience of changing your cost basis tracking method used at your account level or updating an individual security's cost basis. You can make these changes online and they are reflected in your account that day.
What is GainsKeeper on TD Ameritrade? ›
GainsKeeper calculates, tracks and reports cost basis, adjusted for corporate actions and wash sales for 1099 tax reporting and offers a suite of tax smart tools.
How does the IRS know about wash sales? ›
Note: Wash sales are in scope only if reported on Form 1099-B or on a brokerage or mutual fund statement. Click here for an explanation. A wash sale is the sale of securities at a loss and the acquisition of same (substantially identical) securities within 30 days of sale date (before or after).
What clearing firm does Fidelity use? ›
Investments that you entrust to our firm are placed in custody with Fidelity's clearing firm, National Financial Services LLC (“NFS”) — a Fidelity Investments broker-dealer and one of the largest clearing providers in the industry.
What happens if you don't know the cost basis of a stock? ›
The bottom line is that the IRS expects you to maintain records that identify the cost basis of your securities. If you don't have adequate records, you might have to rely on the cost basis that your brokerage firm reports—or you may be required to treat the cost basis as zero, which could mean owing more in taxes.
How do I avoid Fidelity fees? ›
Escaping the Fidelity Recordkeeping Fee can be achieved through strategic actions such as closing the account, seeking fiduciary services, and considering alternatives to minimize financial obligations. Closing the account is a straightforward approach to avoid the fee entirely.
Why is my cost basis not showing on Fidelity? ›
Some of the most common reasons for unknown cost basis are: Shares are transferred to the Fidelity account from another institution. Shares were transferred between two accounts registered to different Social Security Numbers. Shares were transferred between mutual fund accounts and brokerage accounts before August, ...
Do brokerages report to the IRS? ›
While your brokerage will send you a tax form that records your gains and losses, you're on the hook for properly reporting them to the IRS.
What does GainsKeeper cost? ›
Subscription Information
| GainsKeeper Service Levels |
|---|
| Subscription level | Cost | Service Level Availability |
|---|
| Trader 3000 | $359 | All levels |
| Trader 5000 | $499 | All levels |
| Trader Elite | $659 | All levels |
2 more rowsGo to fdic. govto learn more about FDIC insurance. TD Ameritrade, Inc. is a member of the Securities Investor Protection Corporation (SIPC). Securities in your account are protected up to $500,000, including a $250,000 cash limit.
Do brokerages keep track of wash sales? ›
Brokerages are required to report wash sales on Form 1099-B, but they may not always catch every instance. Investors should keep their own records to ensure that they are accurately reporting their capital gains and losses. 4. There are strategies that investors can use to avoid triggering wash sales.
How do you know if something is a wash sale? ›
In short, a wash sale is when you sell a security at a loss for the tax benefits but then turn around and buy the same or a similar security. It doesn't even need to be intentional.
Do wash sale rules apply to IRA accounts? ›
IRA trades can trigger a wash sale in a taxable account, but not the other way around (i.e. you take a loss in a taxable account and re-buy in a retirement account). Wash sales that happen in an IRA permanently disallow actual losses that occurred in your taxable account.
How does Fidelity decide which lots to sell? ›
By default, Fidelity uses first in, first out (FIFO) when selling shares of stock and average cost for mutual fund shares, but you can change your disposal method if you choose, either at the account level or at the time of a sale.
