Interesting. I was reading another post here where someone claimed that Turbotax in 2021 was only listing wash sales on the Form 1949, and so I started researching just what transactions need to be reported...It seems like IRS guidance is changing, so there are more cases where "no" individual transactions need to be reported?
I was reading the latest IRS Schedule D and Form 1949 instructions, and the detail around "exception 1" and "exception 2"
I've excerpted below the paragraphs from the IRS Schedule D instructions that I am trying to understand relative to your suggestions.
It seems that even if there are wash sales, if the brokerage includes the cost basis adjustments in the 1099, then no Form 1949 or statement showing individual transactions is needed?
What is your thinking about this language?
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Lines 1a and 8a— Transactions Not Reported on Form 8949
You can report on line 1a (for short-term transactions) or line 8a (for long-term transactions) the aggregate totals from any transactions (except sales of collectibles) for which:
You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;
The Ordinary box in box 2 isn’t checked;
The QOF box in box 3 isn’t checked;
You aren’t electing to defer income due to an investment in a QOF and aren’t terminating deferral from an investment in a QOF; and
You don't need to make any adjustments to the basis or type of gain or loss reported on Form 1099-B (or substitute statement), or to your gain or loss.
See How To Complete Form 8949, Columns (f) and (g) in the Form 8949 instructions for details about possible adjustments to your gain or loss.
If you choose to report these transactions on lines 1a and 8a, don't report them on Form 8949. You don't need to attach a statement to explain the entries on lines 1a and 8a and, if you e-file your return, you don't need to file Form 8453.
Figure gain or loss on each line. Subtract the cost or other basis in column (e) from the proceeds (sales price) in column (d). Enter the gain or loss in column (h). Enter negative amounts in parentheses.
Example 1—basis reported to the IRS.
You received a Form 1099-B reporting the sale of stock you held for 3 years. It shows proceeds (in box 1d) of $6,000 and cost or other basis (in box 1e) of $2,000. Box 3 is checked, meaning that basis was reported to the IRS. You don't need to make any adjustments to the amounts reported on Form 1099-B or enter any codes. This was your only 2021 transaction. Instead of reporting this transaction on Form 8949, you can enter $6,000 on Schedule D, line 8a, column (d); $2,000 in column (e); and $4,000 ($6,000 − $2,000) in column (h).
If you had a second transaction that was the same except that the proceeds were $5,000 and the basis was $3,000, combine the two transactions. Enter $11,000 ($6,000 + $5,000) on Schedule D, line 8a, column (d); $5,000 ($2,000 + $3,000) in column (e); and $6,000 ($11,000 − $5,000) in column (h).
current IRS Schedule D instructions:
current IRS Form 1949 instructions
https://www.irs.gov/instructions/i8949#en_US_2021_publink[phone number removed]
