topic capital gains in Get your taxes done using TurboTax

capital gains

Kenoakwood — Wed, 31 Mar 2021 17:19:20 GMT

We closed our brokerage account last year. When we went to download the tax info from the brokerage we were unable because the account was closed. The tax info sent to us is 38 pages - 26 being a listing capital gains . Many under .50 or small loss. Some add "original basis:" Some have many entries under the the same company name with a date change.

cant get instrutions? What and how am I with the IRS ?? What can be the problems???

Re: capital gains

fanfare — Wed, 31 Mar 2021 17:31:29 GMT

At tax time, you have the option to summarize your transactions by Sales Category.

IRS requires details to be listed on a Form 8949,
or on your other 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 (recommended), 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).
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 or Box D 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 or Line 8a.
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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 (Line 2) 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.

Re: capital gains

KathrynG3 — Wed, 31 Mar 2021 17:39:49 GMT

@fanfare is correct. Since you no longer have access to import the brokerage statement, the next easiest thing to do is enter these transactions as you received them on the initial summary pages. For more information, see: How do I enter a large number of stock transactions in TurboTax Online?

Regarding sending in the detail after e-filing, TurboTax will provide you all instructions necessary and help with the state filing requirements, as well.

Everything will be sorted out depending on how long you held the transactions.

First, they will be sorted as short-term (held one year or less) and long-term (held more than one year).
Next, they will be sorted by whether the cost information was reported to the IRS - covered, not reported to the IRS - non-covered. The third category, by definition, would not apply: not reported to you on Form 1099-B.

After e-filing the return, submit your 38 pages to the IRS following Form 8453.

Regarding wash sales, you may want to enter one adjustment for all wash sales as part of the summary to capture these details.

For more information, see:

How do I enter a wash sale on my 2020 return?, but go to this link if applicable: Re: How can I enter a wash sale <$1.00?