Schedule D ...need quick verify HELP?

Question

I made 7 trades in 06 and am filling out a D-1. Just to make sure I am getting this right: Column d is the Sale price? (the total amount received upon executing the sale) Column e is the Price I paid for when buying, right? If e is $100 and d is $80...then my LOSS will be reported on column F, right?

*note my short term gain is $2,000*

Now, what doesn't make sense is the form D-1 is asking me to add all the amounts from Column d, which comes to $14,000 and then to combine the amounts in column f, which is my gain of $2000...making Part 1 of Sched. D, line3 $16,000...Why do they want the Sales price totals???

My main goal is to offset the short term gain of $2000 with my single-transaction, Long term Loss of $5000...making the loss of $3000 for the year.

It is just scary to see such a high amount for column D without showing for column e.

Is this right?

Answer 1

"Why do they want the Sales price totals???"

Because they want to see that total sales number is the same as the number that was reported to them by the payor on the 1099's they received with your SS# on them. They will only tax you on your gain (or not at all if you have a loss), NOT the total sales amount.

You'll have a spot for your short-term gain, and lower down, the long-term gain - then on the SECOND page, you combine those together.

Don't fret...just follow the instructions. It is convoluted.

Answer 2

1st ) Chill out with the quick ! None of this is due until April . . .
2nd) Stop sweating col D, you do NOT pay taxes based on D, you pay taxes based on col F line 7.
Why are you wigging out about Col D ? just fill it in & keep going.

And by the way, were those 7 trades actually short term ?
(held less than 1 year ?) just checking . . .