Do I report EVERY stock trade to IRS?

As a general rule you only report your sales transactions and at actual execution price less fees.

You can often summarize the sales transactions if they were made for the same security on the same date

and attaching backup (or at least having it available to provide if they question you) showing the details

Dear WH: You have two choices. List every trade(every order has a buy price) and every sale on Sch D. or Summarize all trades on Sch D and include a copy of your brokerage for the IRS to review.

Average prices are allowed to compute the basis of mutual funds shares not stocks.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

You need to save all trade confirmations so you can calculate the cost basis and profit from sales, as well as whether you have short-term or long-term capital gains. Your broker should help track this for you.

When you sell lots, you specify which shares of the stock you are selling.

You CANNOT use average prices.

when you receive the 1099 B at year's end it will report the proceeds from your stock trades

and you want to make sure you have purchase prices and dates for each of them since you are being reported as receiving 'proceeds' which need to be adjusted by the cost price

you will desire to report and ingredient each sale. you do not would desire to report each purchase. If inventory interior the comparable employer replaced into obtained at distinctive circumstances and replaced into bought at the same time, then you rather can consolidate that below a single report with the be conscious "countless" for date of purchase. in spite of the fact that, if it replaced into bought on distinctive dates or replaced into inventory in distinctive agencies, then it would be listed one after the different.