Tax Reconciliation for International Accounts

International accountholder at tastyworks and that need 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 tastyworks 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 two Tax Worksheets. Tax worksheets come in a CSV (comma-separated values) file or a spreadsheet.

  1. Tax Worksheets with Wash Sales

  2. Tax Worksheets without Wash Sales


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 Worksheets 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 whether to use the tax worksheet with wash sales or the tax worksheet without wash sales.


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 the Tax Worksheet w/Wash Sale CSV file. 


Any positions subject to a wash sale/disallowed loss will list the amount in the GAIN_LOSS_ADJ column in column 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 M). The Term column separates realized transactions as S, L, or 60/40. 

  • S: Short-term Capital Gains/Losses
  • L: Long-term Capital Gains/Losses
  • 60/40: 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 the Tax Worksheet w/o Wash Sale CSV file. 


Additionally, realized transactions subject to short-term, long-term, or section 1256 contracts will list their appropriate column.

  • Short-term Capital Gains/Losses: SHORT_TERM_GAIN_LOSS (column M)
  • Long-term Capital Gains/Losses: LONG_TERM_GAIN_LOSS (column N)
  • Section 1256 Contracts (broad-based index options): List in both columns


Non-Calendar Tax Year

Does your country have a non-calendar year as a tax year? If so, you must combine your Tax Worksheets with your Year-to-Date export file. For example, if your country’s tax year is from July 2021 to June 2022, then you must use the appropriate Tax Worksheet (either w/ or w/o wash sales) in combination with the 2022 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.