TCA Tax Info - February 5, 2009
Trust Company of America has mailed the tax forms
for 2008. You should be receiving them in the mail very soon.
Just like last year, we made quite a few trades. This is
what allowed us to avoid the devastating 40% drop in the stock market in 2008.
That means your Capital Gains and Loss report is long. Be sure that you give
your tax preparer all of the forms and supplementary pages. Trust Company of America is not
mailing copies to us so be sure you save them and give to your tax preparer.
We have had questions about why the 1099-B looks bigger than
the account value. When we make trades, the 1099-B only reports the proceeds.
It does not report the purchases. And, it does not net out the purchases and
proceeds. Again, because of the volume of trades, this number may look large.
At the bottom of the last page of the report is the summary. Your tax preparer
will be using those numbers to file your Schedule D which is the schedule of
capital gains and losses. They also should attach a copy of the report and file
with your tax return. That way they do not have to report every line which is
not necessary. Please encourage them to email us if they have questions. For
most clients, we were very successful last year in netting out the gains and
losses and even creating some tax losses to help your tax return!
Please let us know if you have questions.
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Working for your wealth and peace of mind,
The Vance Capital Management Team | |
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