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Level 2

Include the "Pending Settlement" section of the Brokerage Statement on the Balance Report?

Hello Quickbooks Community,

 

I reconcile Quickbooks to a brokerage statement. The brokerage statement has a section called “Pending Settlement”. I'm trying to decide whether or not to include this section on my Quickbooks Balance Reports.

 

Closing equity trades take three business days to “settle” just like a bank transaction takes three business days to “clear”. If a monthly brokerage statement is printed during the three days that a closing trade is waiting to settle, the trade is placed in a section of the brokerage statement titled: “Pending Settlement”. I’m wondering how important this section of the brokerage statement is for tax purposes.

 

Which of the three choices most accurately reflects how Accountants feel about having a line for "Pending Settlement" on the Quickbooks Balance Report?

 

Having a line for "Pending Settlement" is:

1. A requirement that should be on all well-done Balance Reports.

2. An optional item which is nice to have for clarity but is not a requirement.

3. Not needed. It just clutters things up. 

 

Thank you for your help,

Steve

Solved
Best answer November 17, 2020

Best Answers
Level 2

Include the "Pending Settlement" section of the Brokerage Statement on the Balance Report?

The IRS requires that pending settlements on 12/31 to be accounted for. This is the only time
that pending settlements are accounted for (not on a monthly basis).

View solution in original post

1 Comment
Level 2

Include the "Pending Settlement" section of the Brokerage Statement on the Balance Report?

The IRS requires that pending settlements on 12/31 to be accounted for. This is the only time
that pending settlements are accounted for (not on a monthly basis).

View solution in original post

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