The Activity section of Gain/Loss & Tax Center allows you to review a ledger and a list of raw trades. To get there, place your mouse over the Activity tab at the top and click either Ledger or Raw Trades from the drop-down menu.
The Ledger page provides a view of all your transactions organized by tax lot. This presents a life cycle of each specific lot with each transaction and event itemized sequentially. Transactions include purchases and sales, and events could be reorganizations or stock splits.
This page is often used to understand how cost basis was generated for any given lot. On the Ledger page:
- All lots start with an opening transaction, such as a Buy or Sell to Open, or even a transfer into the account.
- All lots end with a closing transaction, such as a Sell or Buy to Close, or a transfer out of the account.
- Events that impact the lot's cost basis are recorded and will occur between the opening and closing transactions. Examples of these events would be corporate actions or wash sales.
While most of the columns presented in this table are common, there are two with which you may not be familiar:
Adjusted Shares - This column displays the number of shares remaining after a transaction or event takes place. For a simple buy transaction, the number of adjusted shares will be equal to the number of shares purchased. For closing transactions, such as a sell, the Adjusted Shares column will display the number of shares remaining after the sale. Events, such as splits and mergers, will display the number of shares remaining after the event credited or debited shares to the lot.
Adjusted Cost- This column displays the adjusted cost after it is impacted by each transaction or event. For a simple buy Transaction, the adjusted cost will be equal to the cost of the shares purchased. For closing transactions, such as a sell, the Adjusted Cost column will be reduced by the pro rata cost for the number of shares sold. Events, such as splits and mergers, will display the cost after the impact of the event credited cost to or debited cost from the lot.
The Raw Trades page provides a comprehensive list of all transactions the Tax Center receives and processes. The information presented is based on your transactions before Maxit processes them and adjusts them for cost basis information.
You can search by symbol or sort by column heading. If you'd like more information about any of the transactions you see in your account, click the 'details' link to the right of the entry.
Use the symbol filter to search for and view a specific position. For each position, you will see a description of the security, the type of transaction (Event), the transaction date, quantity, and the costs/proceeds of the transaction.
The Specific ID feature was designed to provide you additional information about a transaction, including the tax strategy applied. Locate the sell or closing transaction for which you want to view Specific ID information, mouse over the red arrow at the end of the row and select Details.
Tax Center allows you to select from a number of preset options that will match the share sold against the lots for you, or you can select Specific ID to take total control. The preset options are:
- FIFO - First In First Out
- LIFO - Last In First Out
- HIFO - Highest In First Out
- MinTax - Uses holding period and cost to determine which lot to sell
- MaxGain - Uses holding period and cost to determine which lot to sell
See the Tax Strategy - Page Help section for a detailed description of each tax method.
The last item in the dropdown menu is Specific ID, which allows you to select a closing transaction and then distribute those shares against the available lots manually.
Note: You can only make changes to the tax strategy through the settlement of the closing transaction. After the closing transaction settles, no changes can be made to the sell method.