Open Solution Provides Security
Tax preparation software may include a feature for direct download from your broker. But direct download requires supplying
your user and password information, which poses an added security risk.
Most brokers provide the capability to download trades into CSV or XLS spreadsheet format. Make some fairly straightforward types of changes,
like formatting and removing non-trade data, and then Schedule D Tax Tool can generate the TXF file used for import
into tax preparation software. The TXF import approach completely eliminates the requirement to supply logon credentials, which removes the security risk.
With the open solution, there is no need to ever provide logon credentials for online broker accounts. You simply logon to your online
broker account in the usual manner, and download your trade data completely external to the Schedule D Tax Tool software.
Once the TXF file is generated, you import it to your tax preparation software without ever directly connecting to your broker account,
making the entire process secure.