Tax calculation app for non-US Interactive Brokers users

Foreign users of Interactive Brokers (IBKR) face the problem of how to properly prepare tax returns on their investment activities. We are answering this by creating a tax application that allows you to calculate your taxes in minutes. It is no longer necessary to spend countless hours manually reading reports and studying tax issues, either by you or by your tax advisor.

The application is provided free of charge. It is an additional service, convenient for using our main applications. These are used for making the right investment decisions and applying advanced AI-powered investment strategies.

What the app comes with

Users receive information for the year being assessed that should be sufficient to complete the tax return. To get the output, just upload two documents from the IBKR. In total, the process takes about 5 minutes. The output is as follows:

• The results of their dividend gain/loss.
• Realized income (after deducting closed positions from the previous year and unclosed positions from the year under review).
• Realized expenses (net of closed positions from the previous year and un-closed positions from the year under review).
• Results also account for realized forex and Interactive Brokers fees.

How the app works

1. Select the year for which you want to prepare the tax return.
2. Upload the Realized Summary and Portfolio Analyst statements that we previously downloaded in IBKR.
3. Enter the value of open positions from the previous year.
   The application offers the option to save the positions so that you don’t have to fill in these values in the next year.If you don’t know them, you can have them calculated by uploading the same documents for the previous year.
4. Calculate the results.

What the Tax calculation application can do

• Automatically read reports from the broker and extract all the necessary numbers for tax calculation.
• Convert trades in USD to the user’s home currency, according to the national bank exchange rate.
• Extract dividends from reports.
• Extract from the report the revenues and expenses of the period, add the revenues and expenses of the previous period, and subtract the unrealized profit.
• Subtract fees paid to IBKR and include the results of forex transactions.
• Generate an easy-to-understand PDF document that will give you all the items needed to complete your tax return. Simply attach this document to your tax return and you are done.
• Translate the document into the user’s native language according to the government’s requirements.

What the final report looks like

Below you can see the results of a test user who had his 2023 tax return calculated and is from the Czech Republic. We can see that the user:

• Sold $802,886 worth of stock in that year, closed out $50,987 worth of Short positions from last year (2022), and by the following year (2024) the value of his un-closed Short positions is $47,524.
• Purchased $803,851 worth of stock in the year, closed out Long positions for $76,211 from last year, and by the following year the value of his un-closed Long positions is $74,710.
• The dividend gain (net of withholding tax paid) is CZK 11,634 (already provided in the user’s currency, this is the exact amount they will add to their tax return).
• Trading profit (after deduction of fees and forex) is CZK 7,929 (already provided in the user’s currency, who will insert the values from Income/Expenses in CZK in the tax return statement for the given year).

You can try the application here. Would you like to see the investment results calculated for your country’s tax return? Are you missing any key features? Let us know and we will expand the application accordingly.