topic My 1099 B i have over 600 trades w/box 1d of $50,864,941 and 1e of $51,362,741. can i use turbo tax?? seems has limit of under $10,000,000 in Retirement tax questions

My 1099 B i have over 600 trades w/box 1d of $50,864,941 and 1e of $51,362,741. can i use turbo tax?? seems has limit of under $10,000,000

tmitchy — Tue, 04 Jun 2019 01:26:25 GMT

You are correct in that TurboTax does indeed have a 10-Mi...

GeoffreyG — Tue, 04 Jun 2019 01:26:27 GMT

You are correct in that TurboTax does indeed have a 10-Million dollar (actually $9,999,999) limit in the data entry field for Schedule D (capital gains and losses). That said, you can still use TurboTax when the dollar amounts are higher than this, as the program will accurately add together sums totaling at least up to 8-figures, which is more than enough to cover the 50-million dollars in gross sales proceeds reported on your Form 1099-B. So, your answer is genuinely yes, you can still use TurboTax to file your tax return.

The key, you see, to get the program to allow data entries that in total are 10-million or higher is the "break them up" into a series of somewhat smaller transactions, such that each individual group of securities sales don't total more than 10-million dollars. In your case, it seems that you'd need at least (6) different securities groupings, such that when totaled together, they will equal between 50-million and 60-million.

Perhaps a visual example will help illustrate this principle. Please see the (2) screen capture images below (simply click the pictures to open), created in TurboTax Premier desktop, for an illustration of how (2) groupings of securities have been aggregated together to total just under 20-million dollars in gross sales proceeds. Combining even larger amounts, such as what you have, can be done using the very same methodology.

The TurboTax program will accept this without returning any errors in the software And while it will require doing some math on your part, to enter your 50-million in brokerage data this way, by dividing up your 1099-B into several large blocks of securities (assuming you don't want to enter all 600 individual trades, which is also an option, albeit a tedious one), such a tax return can in fact be completed in TurboTax.

Thank you for asking this question, and good luck with your trading activities.

What if I have wash sale adjustment when enter summary of...

pengjiang2018 — Tue, 04 Jun 2019 01:26:28 GMT

What if I have wash sale adjustment when enter summary of transactions?

Re: My 1099 B i have over 600 trades w/box 1d of $50,864,941 and 1e of $51,362,741. can i use turbo tax?? seems has limit of under $10,000,000

tenbroek12 — Mon, 12 Apr 2021 01:13:23 GMT

Can you tell me where the screen shot pics are that you refer to? Or the pictures of how to list the summaries?

Thanks!

William

Re: You are correct in that TurboTax does indeed have a 10-Mi...

dc511 — Mon, 12 Apr 2021 15:30:28 GMT

Could not see the screen in the reply

Re: You are correct in that TurboTax does indeed have a 10-Mi...

DianeW777 — Mon, 12 Apr 2021 19:09:55 GMT

The pictures simply show the transactions @GeoffreyG was referring to and they did not carryover with his post. The steps to enter a summary of your sales transactions is provided below.

Open or continue your return (if it's not already open) and search (upper right) for the phrase stock sales > Press enter
Select the Jump to link in the search results.
Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
When asked how you want to enter your 1099-B, select I'll type it in myself.
Select or enter your brokerage on the next screen and continue.
On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category (Long or Short term). Refer to your 1099-B for the amounts and category. When finished, select Continue.
When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

If you are e-filing your tax return, then mail your statements along with Form 8453 to:

Internal Revenue Service

Attn: Shipping and Receiving, 0254

Receipt and Control Branch

Austin, TX 73344-0254

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet)

Re: You are correct in that TurboTax does indeed have a 10-Mi...

Anonymous — Sun, 09 Jan 2022 08:19:24 GMT

Hi Diane, @DianeW777

Thank you very much for your thoughtful and detailed response. Will this method work if the total proceeds are $100,000,000 or more? I’m just wondering if TurboTax will be able to handle that. Also, what statements must be mailed in? Just the 1099-B?

Thank you very much for your help.

kind regards,

mark

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Sun, 09 Jan 2022 12:49:43 GMT

@tmitchy

If TurboTax imports your trades successfully (600 is well within the limits supported) it will enter sums over 10,000,000.

It is just you the user who is not allowed to enter such an amount.

You should have no problem.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Sun, 09 Jan 2022 12:52:00 GMT

@Anonymous

I) If your cost and proceeds are in the range 10 million to 99 million,
the simplest solution is to break up your total summary entry into two or more parts that are within the amounts permitted.
Then the summary line and grand total can exceed 9,999,999 because TurboTax puts it in there.
You will be able to e-File.
You may want to file on paper anyway when you need to attach transaction details.

--
II) If your totals are over 99 million,
then you have to do your taxes modulo 100,000,000 or 10^8.
Assuming your gain is less than 100,000,000 TurboTax will calculate your correct tax.

Then get Schedule D and Form 8949 in fillable PDF format at www.irs.gov
You will replicate the forms but with the true numbers.
Print your tax return and remove the Schedule D and Form 8949 from TurboTax
and replace with your own documents.
You will be filing a paper tax return by US Mail.
--
III) Your gain is over 100,000,000.
--
Scenario III is unlikely but if you find yourself in that situation,
you can get Morgan Stanley or some other big bank to do your tax return for you.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

Anonymous — Mon, 10 Jan 2022 20:42:01 GMT

@fanfare Thank you very much for your help. In that case, I’m just wondering how to break out the numbers. Let’s say the proceeds are 116,123,456.78 how would that be entered? Thank you again for your help.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

Anonymous — Tue, 11 Jan 2022 13:03:30 GMT

@fanfare

Thank you very much for your response and help. I’m just confused about how these numbers would be entered. For example, if the proceeds are 116,123,456.78 how would that be entered in TurboTax? Thank you again for your help. Kind regards, M

Re: You are correct in that TurboTax does indeed have a 10-Mi...

Anonymous — Thu, 13 Jan 2022 05:28:27 GMT

Hi @fanfare @DianeW777

Thank you for your reply and help. I’m just confused as to 1. how to enter the numbers into TurboTax and 2. what statements (just a 1099-b?) must be mailed in. As far as 1. If the proceeds are 116,123,456.78 how would that be entered? And 2. Which statements must be mailed in. Thank you very much for your help.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

Anonymous — Fri, 14 Jan 2022 12:57:16 GMT

Thank you very much for your help. @fanfare

I am just confused how to enter in the numbers. For example if the proceeds are $116,111,222.33 how would that be entered? Also, does the IRS need any copies of broker statements and/or the 1099-b? Thank you again for your help.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Fri, 14 Jan 2022 13:38:54 GMT

@Anonymous

Use the summary option.

Overall Gain: enter proceeds equals gain plus one, cost equals 1.

Overall Loss: enter proceeds equals 1, cost equals loss plus one.

TurboTax doesn't like zeros for cost basis.

Once your final tax is calculated and printed, you can substitute your own PDF Schedule D with the correct amounts.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Fri, 14 Jan 2022 13:35:55 GMT

@Anonymous

IRS requires details of every SELL transaction 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.

Particularly, that includes Wash Sales, since those are adjusted transactions.

The only exception is:

category Box A or Box D sales without adjustments on a 1099-B with basis reported to IRS do not require Form 8949.

If you choose to use the exception, report the totals for those SELL transactions on Schedule D Line 1a or Line 8a.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

DianeW777 — Fri, 14 Jan 2022 14:06:58 GMT

Not an issue. Follow the steps below and TurboTax will handle your transactions. You can still e-file using the instructions below making sure to group short term and long term entries separately. Likewise, if there are any wash sales they must be entered individually if the wash sale rules apply in your situation. I tested an entry with a hundred million transaction and it worked easily in TurboTax.

The steps to enter a summary of your sales transactions is provided below.

Open or continue your return (if it's not already open) and search (upper right) for the phrase stock sales > Press enter
Select the Jump to link in the search results.
Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
When asked how you want to enter your 1099-B, select I'll type it in myself.
Select or enter your brokerage on the next screen and continue.
On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category (Long or Short term). Refer to your 1099-B for the amounts and category. When finished, select Continue.
When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

If you are e-filing your tax return, then mail your statements along with Form 8453 to:

Internal Revenue Service

Attn: Shipping and Receiving, 0254

Receipt and Control Branch

Austin, TX 73344-0254

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet)

[Edited: 01/14/2022 | 6:06a PST]

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Fri, 14 Jan 2022 17:49:38 GMT

Expert @DianeW777

"8. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category (Long or Short term)."

[comment removed]

You're right if you use the Summary Option in TurboTax Online.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Fri, 14 Jan 2022 17:47:52 GMT

@DianeW777

comment updated.

Is this new in 2021 TurboTax ?

Re: You are correct in that TurboTax does indeed have a 10-Mi...

DianeW777 — Fri, 14 Jan 2022 17:59:35 GMT

@fanfare It worked in TurboTax Online with my test, asking for the .pdf upload of Form 1099-B.

Re: You are correct in that TurboTax does indeed have a 10-Mi...

fanfare — Fri, 14 Jan 2022 18:08:33 GMT

@DianeW777

You should also test this in TurboTax CD/Download.

last year the desktop program would not accept a PDF file.