Brokerage Account Basics
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Returning Member

Brokerage Account Basics

I was thinking about opening a fidelity brokerage account next year, and I was looking for a general guide of what I need to keep track of with my TurboTax account.

 

I read that TurboTax Premiere can link and import to brokerage accounts.  Does this automatically import everything I need for my tax return and I don't need to worry about anything else?

 

Do I need need to keep track of every stock/security that I sell throughout the year and report each sale individually to turbotax?  Can I enter each sale as I go through the year so that I don't have a large number to enter all at once at filing time?

 

Thank you for your help!  As you can see, I am new to this.

3 Replies
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Level 15

Brokerage Account Basics

You might want to review the information at the link below (and the links embedded on that page) and then pose any further questions here.

 

https://ttlc.intuit.com/community/bugs-and-error-messages/help/error-we-notice-you-have-more-than-50...

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Level 15

Brokerage Account Basics

Sorry no you can not enter them during the year.  You will get all the 1099-INT, 1099-DIV and 1099-B for sales for the end of the year by late February.  You should be able to import them.  But you will need to check each sale to make sure the cost basis imported right.

 

How to import your 1099

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-import-my-1099/00/26254

 

If you can't import you can enter a summary of the totals.  Then mail the backup statement.  How to enter the summary

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-large-number-of-stock-tra...

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Level 15

Brokerage Account Basics

At tax time, 

You have the option to summarize your transactions by Sales Category.

 

IRS requires all details to be listed on Form 8949,
or on your own forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax does not offer this feature).
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.

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As an active investor, be aware that your category Box A sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a.
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If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

Enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form to know how much to subtract. Be sure to NOT check the adjustments box in the summary window.
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Alternatively, if entry of Wash Sales is too tedious,
summarize and check the box for adjustments and enter the disallowed amount.
This summary will go on Schedule D Line 1b.
You will be making the mail-in election.

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