form 4989

[hitcoach52]

I always import my trades from Quicken and form 49489 is generated and totals show on form D on line 1b.. this year no 4989 and totals show on form D line 1a .. how can I generate dorm 4989

[GiseleD]

According to the IRS instructions for Form 8949, there are exceptions to reporting on Form 8949. It sounds like you met one. Please read on:

Exception 1.

Form 8949 isn't required for certain transactions. You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D. This option applies only to transactions (other than 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;
• 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); and
• 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.

If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement. For more information, see the Schedule D instructions.

[hitcoach52]

Thank you... I have over 2500 trades and the IRS will probably ask for copies... is there a way to generate form 4989 if I just want to include it as I have in the past to stop any future headaches... there should be a way to just generate a 4989 if i want to.. thanks

[fanfare]

IRS will not ask for copies.

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.
--
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.
--
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.

[fanfare]

This year Turbotax 2019 is applying strange rules to form 8949 to decide what to list and what not to list.

Perhaps that will be repaired next year.

There's not much you can do about it besides use other tax software.

[fanfare]

If TurboTax yields no form 8949, based on the posts of others on this forum, you probably have no Wash Sales and TurboTax is aggregating for you.

You are done.

[hitcoach52]

Thanks... wonder why they changed it this year... has other tax software , 9 HR block )  done the same?

[Critter]

Myself, using a professional program, simply use the summary reporting method for all covered sales which are automatically put on the 8949 and then to the Sch D as appropriate.   Not sure what the TT program is doing but the summary entry option is always allowed to reduce the entries down considerably. 

[hitcoach52]

Thanks all... Just would like to know if there is any way to generate a 4989,,, importing trades this year , everything goes to Sch D 1a ... previously a 4989 was generated and trades showed up on Sch D  line 1b  .. just want to know if a 4989 can be generated this year on TT .. thanks again

[Critter]

First it is an 8949  and second don't let it worry you when you import it ... the IRS is getting what they need on the Sch D and that is OK. 

[hitcoach52]

Thanks again.... my bad as far as correct number on form... lol

here's another question... I short stocks sometimes and am responsible for any dividends paid out... on 1099-Div, a negative number is imported , but  it shows as an error cause its not between limits.. anything I can do ?,,, thanks again

[Critter]

You cannot have a negative income item like dividends ... sounds like you received the dividends then nominee them to another party thus negating the income so the best you can have is a wash ... ask the broker to explain the negative amount and make the correction I think is needed. 

[hitcoach52]

Thanks again.. if you are short a stock on the ex dividend date, you are responsible to pay the dividend and the amount of the dividend is taken out of your account on the pay date... thanks

[fanfare]

You're starting a new thread.

IRS has two rules for how to handle the dividend you paid depending on how long you were short the stock.

See the IRS Pub 550 section on Short Sales for details.

Meanwhile don't report (delete) that 1099-DIV with a negative amount.

[fanfare]

If you adjust the basis, you will have an adjustment, and you must report the adjustment amount on Form 8949 !

BUT first, examine the consolidated 1099-B for that transaction to see if the broker already made the adjustment for you.