US tax reporting

TrackMyShares generates detailed tax reports tailored for US investors. This guide walks you through capital gains classifications, wash sale detection, tax-loss harvesting, and how to export reports for your tax preparer.

Disclaimer: Tax reports in TrackMyShares are for informational purposes only. Always consult a qualified tax professional for advice specific to your situation.

Requirements

Before generating a US tax report, make sure you have:

• Transaction-based portfolio — Cost basis portfolios lack the transaction dates needed for accurate reporting
• Complete transaction history — All buys, sells, and dividends recorded
• Accurate dates — Holding periods and tax year boundaries depend on correct transaction dates

Short-term vs long-term capital gains

The US tax code distinguishes between short-term and long-term capital gains based on how long you held the asset before selling:

Holding period	Classification	Tax treatment
12 months or less	Short-term	Taxed at your ordinary income rate
More than 12 months	Long-term	Taxed at preferential rates (0%, 15%, or 20% depending on income)

TrackMyShares automatically classifies each sale as short-term or long-term based on your purchase and sale dates.

Generating a tax report

1. Open a transaction-based portfolio
2. Click the menu (three dots) in the portfolio header
3. Select Tax report
4. Set the tax region to US
5. Choose the financial year (the US tax year runs January 1 to December 31)
6. Click Generate report

The report may take a moment if you have many transactions.

Understanding the report

Capital gains summary

The top section provides an overview of your position for the year:

• Short-term gains — Total gains from assets held 12 months or less
• Short-term losses — Total losses from assets held 12 months or less
• Long-term gains — Total gains from assets held more than 12 months
• Long-term losses — Total losses from assets held more than 12 months
• Net capital gain/loss — Your overall position after offsetting

Transaction details

Each realised sale is listed with:

• Date sold — When you sold the shares
• Symbol — What you sold
• Quantity — Number of shares sold
• Proceeds — Sale amount received
• Cost basis — What you paid (calculated using FIFO)
• Gain/Loss — The difference between proceeds and cost basis
• Holding period — Short-term or long-term classification

Dividend income

A separate section shows:

• Total dividend income received during the tax year
• Foreign withholding tax paid on international holdings

Wash sale detection

A wash sale occurs when you sell a security at a loss and repurchase the same or a substantially identical security within 30 days before or after the sale. The IRS disallows the loss deduction when this happens.

TrackMyShares automatically scans your transactions for potential wash sales and displays warnings showing:

• Symbol — The affected holding
• Sale date and quantity — When and how much you sold
• Repurchase date and quantity — When and how much you rebought
• Disallowed loss — The portion of the loss that cannot be deducted

When a wash sale is flagged, the disallowed loss is typically added to the cost basis of the replacement shares, deferring the loss rather than eliminating it entirely.

Avoiding wash sales

• Wait at least 31 days before repurchasing the same security
• Consider purchasing a similar (but not substantially identical) security during the waiting period
• Review wash sale warnings in your tax report before filing

Tax-loss harvesting

Tax-loss harvesting is a strategy where you sell holdings currently at a loss to offset realised capital gains. TrackMyShares includes a dedicated tax-loss harvesting tool that:

• Identifies holdings with unrealised losses
• Calculates estimated tax savings based on your marginal tax rate
• Recommends whether to sell all, sell partial, or hold each position
• Flags potential wash sale conflicts

For a detailed walkthrough, see the tax-loss harvesting guide.

Exporting for your tax preparer

PDF export

1. Click Export PDF on the tax report page
2. A formatted report downloads to your device
3. Share the PDF with your accountant or CPA

CSV export

1. Click Export CSV on the tax report page
2. Download the detailed transaction data
3. Import into tax preparation software or provide to your tax professional

What to share with your tax preparer

Your tax report includes the information typically needed for Schedule D and Form 8949:

• Short-term and long-term capital gains and losses
• Individual transaction details with dates, proceeds, and cost basis
• Wash sale adjustments
• Dividend income summary

Tips for accurate reporting

Before generating your report

• Ensure all transactions for the tax year are recorded, including any December sales
• Verify transaction dates match your broker confirmations
• Check that cost basis figures are correct for all holdings

Record keeping

The IRS recommends keeping investment records for at least 3 years after the return is filed, or longer if you carry forward losses. Keep your TrackMyShares reports alongside broker statements for verification.

Special situations to discuss with your tax professional

• Wash sales spanning multiple accounts
• Inherited or gifted shares with adjusted cost basis
• Foreign tax credits from international holdings
• Net investment income tax (NIIT) implications