yzebrov
Returning Member

Do I need to send in stock sales documentation?

I am filling out the stock sales portion and I'm confused whether I need to enter each sale separately of if I can just enter summaries and be done with it. Here's the situation. These are all employee stock sales RSUs. I have 3 sales for Short Term - Noncovered, and one Long term - Noncovered. Non of the sales have any adjustments, and there's a small loss on all the sales. So the 1099-B has information in Quantity (box 1a) , Date acquired (1b), Date Sold (1c), Proceeds (1d) and Cost Basis (1e). The rest of the boxes are empty and not checked.  There's also a small discloser written: The gross proceeds from each transaction is reported individually to the IRS and is net of deductions and commissions. Consider the Gross proceeds box checked in IRS Box 6 (Reported to IRS).

 

The options that Turbo Tax gives me is to 1. enter the information as one sale at a time or 2. enter a summary of each sale category. When I click into details for which way I should do it, here's what it provides:

 

For sales that aren't identified as Box A or Box D sales, or that require adjustments, you have a choice to make. If you choose to enter summary totals for these sales, then you'll be required to mail in a statement with specific information about each individual sale. Otherwise, you can just enter each sale one at a time in TurboTax, and you won't have to mail anything in.

 

Here's a tip that might help: you can report individual sales as well as summaries for the same account. So let's say you have an actively traded account with 500 stock sales that are all Box A or Box D sales. Only 3 of the sales require any adjustments. In this case, you can report the 3 sales that require adjustments individually. Then you can report all the remaining sales by entering two sales summaries, one for all the Box A sales that don't require adjustments and one for all the Box D sales that don't require adjustments. By entering just 5 sales, you've covered all 500 sales and don't need to mail in any additional info.

 

So I take this to mean that I can enter summaries and I'm good to go. No additional information needs to be sent in. BUT, when I do that on the summary page of all the stock sales reported, it says "see attached statements" next to each of the sales summary that I have entered. Then at the bottom in bold, it says "To finish reporting these sales follow the mailing instruction"  

 

When I click into the mailing instructions it says:

 

Take a moment to double-check that your statements are complete. For each sale listed, there should be:

- A Description
- Date Acquired
- Date Sold
- Sales Price
- Cost Basis
- Gain or loss for each sale
- A sale category based on how the sale was reported to you and the IRS

In some uncommon cases, there will be an adjustment code and adjustment amount.

 

So based on the instructions when I was entering the info, you only needed to enter each sale when you had adjustments, and the rest could be entered as a summary. When you select to enter a summary, it only asks for 2 pieces of information  1. Sum of Proceeds  and 2. Sum of Cost Basis. It didn't ask for date acquired, date sold, etc.

 

So what gives? There's so much conflicting messaging here. Am I good just making two summary entries for my case (one for short term security sales, and one for long term securities sales)?