Your Stock Went to Zero: How the Worthless-Securities Deduction Works
Stock that became totally worthless is deemed sold Dec. 31 under IRS Section 165(g) — report $0 proceeds on Form 8949 and amend up to 7 years back.
#schedule-d
Schedule D
Schedule D preparation for investment tax reporting
Domain Flipping and the IRS: Are You an Investor or a Dealer?
On a $25,000 domain sale, investor treatment costs roughly $3,750 while dealer treatment can exceed $9,000 — how Section 1221, the nine-factor hobby test, and per-name basis records decide which you are.
Section 1234A and Termination Payments: Why a Forfeited Deposit or Canceled Purchase Option Gets Capital, Not Ordinary, Treatment
Section 1234A treats gain or loss from the cancellation, lapse, or termination of a right in capital-asset property as capital — so a forfeited earnest-money deposit is usually a short-term capital loss, a lapsed option premium is short-term capital gain, and a merger break fee is a capital loss capped at $3,000 of ordinary income per year for individuals. Services contracts, Section 1231 business property, and debt retirements fall outside the statute and stay ordinary.
Form 1099-B Cost Basis: Reconciling Covered and Noncovered Securities on Form 8949
Brokers often report a wrong or zero cost basis on Form 1099-B, especially for RSUs and ESPP shares. This guide explains covered vs. noncovered securities, Box 1e and Box 5, and how Form 8949 adjustment code B corrects basis so you do not pay tax twice on the same income.
DeFi Yield Farming and Liquidity Pool Taxes: LP Tokens, Staking Rewards, Impermanent Loss, and Schedule D
A guide to the U.S. tax treatment of DeFi yield farming for the 2026 filing season — how LP token deposits and redemptions, staking and farming rewards, impermanent loss, wrapped tokens, and the new 1099-DA broker rules map to Form 8949, Schedule D, and Schedule 1.
DeFi Yield Farming Taxes 2026: Mapping LP Tokens, Staking, and Wrapped Tokens to Schedule D
A practical 2026 filing guide for U.S. DeFi users — how the IRS property classification turns LP token mints, staking accruals, wrapping, bridging, and impermanent loss into specific Form 8949 and Schedule D entries, and what Notice 2024-57 and Form 1099-DA actually change for self-reported activity.
Section 1256 Contracts and the 60/40 Tax Rule: A Trader's Guide to Form 6781
Section 1256 splits gains on futures, broad-based index options, and qualifying forex 60% long-term and 40% short-term, capping the top federal rate near 26.8% versus 37% on equity options. A 2026 guide to Form 6781, the mark-to-market rule, and the three-year loss carryback.
Section 1212 Capital Loss Carryover: The $3,000 Annual Cap, Indefinite Carryforward, and Why Character Survives Across Tax Years
A practical guide to IRS Section 1212 for individual investors: the $3,000 annual ordinary-income cap, indefinite carryforward, short-term vs. long-term character preservation, the Schedule D ordering rules, and how wash sales interact with carryovers.
Cryptocurrency Tax Compliance Guide: Mastering IRS Requirements with Beancount.io
Complete guide to cryptocurrency tax compliance using Beancount.io. Master IRS requirements, automate tax reporting, optimize capital gains, and ensure accurate crypto tax filing.