Maxit FAQs
FAQs
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This is a list of any transfers you've received into your account for which we don't have the necessary purchase information.
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Maxit Tax Manager imports and tracks trade data from the site, and is able to generate prepared Schedule D and 8949 forms to show a record of Gain and Loss for the year on both covered and non-covered securities according to the IRS reporting rules. Schedule D and 8949 documents are generally available for download by the first week of February for the previous tax year's transactions. You can find your Schedule D and 8949 by logging in, selecting More and Statements and Tax Forms. You can always call us for help at 1-855-880-2559.
Maxit enables you to select tax purchase lots and view trade match-ups in the Raw Trades section, which update within a business day to be included in the Schedule D and 8949 forms generated by Maxit. That information can also be downloaded in a TXF file, which many electronic tax programs can upload. Your tax software's customer support can assist you in determining how to import that file into their specific software. You can download a TXF file from the Tax Reports tab of Maxit.
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Completed Positions are those positions for which you've already provided purchase information.
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Maxit Tax Manager and Realized/Unrealized Gain & Loss are independent of Tax Lot Allocation requests you submit by phone. These changes won’t automatically update within the Maxit tool or on Realized/Unrealized Gain & Loss. Once you update Maxit, Ally Invest’s Gain & Loss pages will typically update overnight.
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Maxit Tax Manager is a third-party service that helps you simulate different factors contributing to the taxes you pay on your investments. Changes you submit through Maxit are for display purposes only and don’t directly modify any tax reporting on your 1099.
One of these factors is cost basis, which is a term used to describe both original and adjusted costs. Original cost is what you originally paid for a position in your portfolio. Adjusted cost is the true cost of a position you hold. This is often more complicated than simply looking at the original price you paid for a stock in your portfolio. A few things can happen which will impact the cost basis of that position, including corporate actions such as splits or mergers. Wash sales, non-dividend distributions and selling part of a larger position can also change your cost basis. Maxit alleviates the need for you to worry about calculating for these events on your own by automatically adjusting the cost basis.
Another important element of the Maxit service is helping you manage the sale of positions. When you buy a position, you get a number of shares at a specific price on a specific date. When you buy that position more than once, you have different groups of shares, each identified individually as lots with differing quantities, prices and purchase dates.
SYMBOL OPENED QUANTITY PRICE ABC 01/22/2006 100 $19.45 ABC 02/15/2006 150 $23.18 ABC 03/05/2006 150 $30.15 Each of these purchases represents one lot, but your holdings page displays this as one position of 400 shares. Keep in mind, the IRS identifies each individual share rather than as a lot or a position.
Lots play an important role in managing your after-tax results. Since each lot has its own cost basis, it's important to select the right ones when you’re closing a position, so you achieve the best tax result for your situation. Maxit is designed to make this as simple as possible by letting you identify individual tax lots.
Note: As a third-party service, Ally Invest isn’t responsible for this information and doesn’t guarantee its accuracy. We recommend reaching out to a professional or the IRS for tax advice.
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These five options are the settings to help you simulate different tax strategies. Changes you submit through Maxit Tax Manager are for display purposes only and don’t directly modify any tax reporting on your 1099.
First In, First Out (FIFO): The lots you purchased first will be sold first.
Last In, First Out (LIFO): The lots you purchased last will be sold first.
Minimum Taxable Gains (MinTax): The Maxit system determines the best lot to sell to minimize your after tax gains and lower your tax burden.
Maximize Taxable Gains (MaxGain): This setting will sell lots first that would realize the largest taxable gain. This strategy should be used with care since its ultimate effect is to increase your tax burden.
Average Cost (Avg Cost): Average cost only applies to Mutual Fund investments. Using this method averages the total cost of your mutual fund position across all your tax lots. Average cost can only be applied from the beginning of a year, and once it’s selected, you can’t change it without permission from the IRS or until you sell out that position entirely.