form 4989

Forum|Forum|6 years ago
June 22, 2020
16 replies
39 views

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

Capital Gains

GiseleD

Level 14

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.

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hitcoach31Author

Level 2

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

Level 15

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.
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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.