This weekend I tried to do my taxes using Turbo Tax software. This is the first year I played on the stock market and my wife started a sole proprietorship company. That's why I chose to use tax software over doing it manually.

As I was going through the worksheets, I was quite impressed by the ability to import data from my payroll company and my E*Trade account. However, once I saw what it did with my E*Trade data, I became a bit perplexed.

It appears that it counted all my stock sales as a capital gain and calculated taxes accordingly. It did not account for the fact that I bought these stocks first and my gain was not full sales price but rather the difference between the sales price and the purchase price (basis?).

Should I contact TurboTax vendor or E*Trade for explanations? Or may be I'm not the first one who sees this problem and somebody on this forum can give me a hint?

Any advices will be appreciated!

Please keep in mind that I'm an engineer not a CPA