Business & Finance Stocks-Mutual-Funds

How to Work Out Taxes As a Sole Trader

    • 1). Compose a short description of each security in column (a) of the lines on Part I of Schedule D. Use Schedule D-1 if more lines are required.

    • 2). Record the date of purchase for each security in column (b).

    • 3). Enter the date of sale for each security in column (c).

    • 4). Place the sale proceeds for each security sold in column (d).

    • 5). State the cost of each security sold in column (e).

    • 6). Subtract column (e) from column (d) and record the result in column (f). This is the gain on each security or the loss if the figure is a negative number.

    • 7). Complete the remainder of Schedule D in order to report the results on your personal income tax return for the correct calculation of tax.

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