Hello everyone,
I’m writing to ask for advice on how to structure the analysis of bank statements for the purpose of filing a tax return in Italy (Form 730 / Sections W and RT).
I’m developing a Python script to automate the calculation of account balances and capital gains based on broker statements. I’d like to make sure I’m correctly accounting for all items that affect cash flow.
Specifically, for calculating the opening/closing cash balance and cash flows for the year:
Can you confirm that, in addition to deposits and withdrawals, I should include all amounts resulting from securities purchases/sales, trading commissions, net/gross dividends, withholding taxes, and any interest?
What is the best approach for tracking these changes and avoiding discrepancies between the book balance and the actual balance?
Can anyone explain what the account balance consists of and how the amount shown on the statement is calculated?
Thank you in advance to anyone who can provide feedback or share their experience!