Tax Reconciliation for International Accounts

Are you an International account holder at tastytrade that needs to reconcile trading activity from the prior calendar year to determine your realized profit and loss? If so, then you’re at the right place! Below, we’ll go over what resources tastytrade will provide you so that you can reconcile your trading performance.


TABLE OF CONTENTS


Available Tax Data for International Accounts

The tax forms and transactional data you receive will depend on your account activity. 


Equity/ETF shares, Equity Options, or Broad-Based Index Options

If you had a realized profit or loss in stocks or ETF shares, closed or had any equity or ETF options expire, or traded any broad-based index options (i.e., SPX, NDX, VIX, etc.) in the prior calendar year, then our clearing firm will issue a Tax Worksheet. The tax worksheet will come in a CSV (comma-separated values) file or a spreadsheet.


Futures and Options on Futures

Any trading activity in an outright futures contract or option on futures contract will result in a Futures 1099-B getting issued. Futures are marked-to-market, so if you opened a futures position in the prior calendar year and held to the current calendar year, you will receive a Futures 1099-B despite not closing the contract. To learn more about mark-to-market, please click here.


Cryptocurrencies

If you realize a profit or loss trading cryptocurrencies, you will receive a Form 1042-S.


How to Reconcile using Tax Worksheets

Since tax reporting for trading varies from country to country, you will need to reconcile your realized profit or loss using the Tax Worksheet hosted in our Tax Center. To learn where the Tax Center is located, please click here


Familiarizing yourself with your spreadsheet software’s filtering function can help sort and view your transactions. We’ve linked filtering instructions on some widely used software below.


Your local tax authority’s rules about wash sales (disallowed losses) will determine which column of the tax worksheet you will use to determine your overall gain/loss.


Code Key for Opening and Closing Transaction Columns

When viewing your Year-to-Date Export file or Tax Worksheets, you can use the following columns when determining your Cost Basis, Proceeds and P/L.

  • SEC_SUBTYPE - Equity Option, Common Stock, Index Option
  • NO_WS_COST - Cost Basis where no wash sale wash was reported
  • NO_WS_PROCEEDS - Proceeds where no wash sale was reported
  • NO_WS_GAIN_LOSS - Total gain/loss where no wash sale was reported
  • TERM - Short Term, Long Term, SixtyForty, Undetermined
  • COVERED_IND - Covered, Non-covered



Please check your software’s settings if you notice any incorrect formatting. The Tax Worksheet CSV files provided are unformatted and do not have regional formats applied.


Tax Worksheet (w/ Wash Sales)

Does your local tax authority have wash sale rules and specific tax treatment based on your holding period? If so, you’ll want to use column AG (8949_GAINLOSS) of the tax worksheet to help determine your overall p/l. 


Any positions subject to a wash sale/disallowed loss will list the amount in column AE (1099_DISALLOWED_LOSS).


When viewing your realized transaction data, you can separate short-term, long-term, and Section 1256 contracts (broad-based index options) by filtering or sorting the Term column (column AJ). The Term column separates realized transactions as ShortTerm, LongTerm, and SixtyForty. 

  • ShortTerm: Short-term Capital Gains/Losses
  • LongTerm: Long-term Capital Gains/Losses
  • SixtyForty: Section 1256 Contracts (broad-based index options)


Tax Worksheet (w/o Wash Sales)

Does your local tax authority not have wash sale rules? If so, you’ll want to use column T (NO_WS_GAINLOSS) of the tax worksheet to help determine your overall p/l.


When viewing your realized transaction data, you can separate short-term, long-term, and Section 1256 contracts (broad-based index options) by filtering or sorting the Term column (column AJ). The Term column separates realized transactions as ShortTerm, LongTerm, and SixtyForty. 

  • ShortTerm: Short-term Capital Gains/Losses
  • LongTerm: Long-term Capital Gains/Losses
  • SixtyForty: Section 1256 Contracts (broad-based index options)


Non-Calendar Tax Year

Does your country have a non-calendar year as a tax year? If so, you must combine your Tax Worksheet with your Year-to-Date export file. For example, if your country’s tax year is from July 2022 to June 2023, then you must use the available Tax Worksheet in combination with the 2023 Year-to-Date Export file to reconcile your total realized profit or loss. To learn more about the year-to-date export file, please click here.