topic Using the summary entry option use the "short hand" entry... in Retirement tax questions

Since my 1099-B has more than 3000 transactions from Motif Investing, TT cannot import it and tells me to mail in 8453 form with 1099-B. But the 1099-B is 326 pages long.

psk — Wed, 05 Jun 2019 03:09:48 GMT

All i did was buy and see a few motifs. So am I supposed to print 326 pages and mail them all to IRS? Shouldn't we be able to upload the 1099-b pdf as attachment to return like TaxAct allows users to do? This is crazy...

what is a Motif and how does it turn into thousands of tr...

fanfare — Wed, 05 Jun 2019 03:10:13 GMT

what is a Motif and how does it turn into thousands of transactions ?
Are there any wash sales itemized in your consolidated 1099-B ?

Each Motif has 20-45 stocks in it. SO everytime you buy s...

psk — Wed, 05 Jun 2019 03:10:14 GMT

Each Motif has 20-45 stocks in it. SO everytime you buy sell a motif, it trades all of these in it. I see wash sales. further each sale seems to be fulfilled in fractions, so in 1099-b i see 8 transactions listed for 1 stock (0.1,0.1,0.2 etc). Its weird but i didn't have this issue in 2017 as I only sold 3 motifs and thts it.

Using the summary entry option use the "short hand" entry...

Critter — Wed, 05 Jun 2019 03:10:15 GMT

Using the summary entry option use the "short hand" entry method ... make ONE entry called Short Term covered, one called Long term covered.... and use the word Various for date purchase & 12/31/18 for sale date.

Then enter the non covered sales either individually OR again make the general short/long term entries by doing this you ONLY have to mail in the non covered pages from the broker statement which should only be a few pages which is very easy to do. I have done this in my business for years successfully.

the filer probably has NO uncovered transactions

fanfare — Wed, 05 Jun 2019 03:10:16 GMT

the filer probably has NO uncovered transactions

I entered the summary totals and there are lots of tiny w...

psk — Wed, 05 Jun 2019 03:10:18 GMT

I entered the summary totals and there are lots of tiny wash sales. Everything I have in 1099-B is listed as -
Short-Term Transactions for Which Basis Is Reported to the IRS - Report on Form 8949, Part I, with Box A checked.
Short-Term Covered Totals-Proceeds(1d)-Cost/Other Basis(1e)-Wash Sale Loss(1f)

Are you saying there is no need to mail in 8453 form if e...

psk — Wed, 05 Jun 2019 03:10:19 GMT

Are you saying there is no need to mail in 8453 form if everything I have is "Short term Covered" ?

Yep.... make one line entry and you are done ... the IRS...

Critter — Wed, 05 Jun 2019 03:10:21 GMT

Yep.... make one line entry and you are done ... the IRS already has the information on their copy of the 1099-B the broker sends them as well so since they are COVERED sales... they do not require another copy of the 1099-B.

This is a short cut tax professionals have used for years now.

You are referring to Exception 1 in the instructions. Her...

fanfare — Wed, 05 Jun 2019 03:10:23 GMT

You are referring to Exception 1 in the instructions. Here's what it says.
your shortcut is basically pretending 100% of the transactions have no adjustments
You are also reporting the information on the wrong line.

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 1g, and
You don't need to make any
adjustments to the basis or type of gain or
loss (short term or long term) reported on
Form 1099-B (or substitute statement), or
to your gain or loss.

We have even used it even if there is a Wash sale amount...

Critter — Wed, 05 Jun 2019 03:10:24 GMT

We have even used it even if there is a Wash sale amount to report without issues.

I read the exceptions and since there are wash sales all...

psk — Wed, 05 Jun 2019 03:10:25 GMT

I read the exceptions and since there are wash sales all over, i was worried about not filing 8453 which turbotax prints out with the return and asks me to mail it within 3 days of efiling approval. What I don't get though is why irs needs a copy from me when broker already sends them one as Critter#2 said doesn't make sense... I spoke with a CPA/EA from turbotax and he said there is no way to attach the pdf to return n i just have to print it and mail in the 300+ pages...

Do what you like but the IRS already has all that info so...

Critter — Wed, 05 Jun 2019 03:10:27 GMT

Do what you like but the IRS already has all that info so mailing it in is a waste of time ... if they want they can ask for it later.

Why does IRS need a W-2 attached by you when the employer...

fanfare — Wed, 05 Jun 2019 03:10:29 GMT

Why does IRS need a W-2 attached by you when the employer already sends them one? It's the same conundrum.
Please keep in mind that the IRS data processing technology is still fifty years old (tape drives and all that).

If I had a 300 page document I think I'd let @Critter#2 '...

fanfare — Wed, 05 Jun 2019 03:10:31 GMT

If I had a 300 page document I think I'd let @Critter#2 's argument prevail.

I read a note that "An electronically transmitted return...

psk — Wed, 05 Jun 2019 03:10:32 GMT

I read a note that "An electronically transmitted return will not be considered complete until a Form 8453 is received by the IRS." So I decided to mail the form with only the last page of my 1099-B which shows the Totals for Short term covered 1d, 1e, 1g and the 1st page of 1099-b which shows Summary of Form1099-B. IF they don't like it and require the full 300 pgs, I will send it in when they ask for it but i think this is a little ridiculous and tt should allow pdf attachments like tax act's attachment mgr which allows 3MB pdf;s specifically for 8453. Thanks for all your responses!!

Re: Using the summary entry option use the "short hand" entry...

mister_ee_man — Sat, 08 Mar 2025 17:46:09 GMT

Hi Critter,

I know it's been years since you wrote this, but I think I am taking your advice here since I have thousands of transactions covered and only 1 not-covered. But when I tried doing exactly what you said (enter by section rather than 1-by-1), it asked for the lump sum total of sales and basis, but no option to enter dates. It also said it required form 8453 even before I entered the non-covered trade just because most my trades had wash sale adjustment. Anyway, since you said you entered various for basis and 12/31/2018 for sale, I imagine that you must have entered it as a 1-by-1. So I did that (entered the summary amounts as a single covered trade and named it short term covered total) and it no longer said it required form 8453. Even after I added the 2nd one as a non-covered trade, it still never asked for the form. Does that sound right? Did you continue to use this method these days? Thank You!

Re: Since my 1099-B has more than 3000 transactions from Motif Investing, TT cannot import it and...

DianeW777 — Mon, 10 Mar 2025 19:18:12 GMT

Yes, you can use summary totals which should be long term and short term transactions. You can further separate by covered and noncovered if you choose. Regardless of how you choose to do it you may want to file Form 8453 and a copy of your 1099-B, after your tax return has been accepted. You can also wait to see if the IRS does request it later, if TurboTax doesn't indicate you should file it. See the information below if you want to mail now. Review the wash sale rules below.

Wash sales cannot be combined into section totals. They should be entered individually so that you can track your cost basis and know when you are allowed to use the information on a final sale.

Wash Sale Rule Defined:

A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.
It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain of other stock.

Affect on Cost Basis:

The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale.
When all shares are sold and there is no repurchase, that increased cost basis will be used in full and used to determine gain or loss.

As long as you are tracking the wash sales and are not using them on the tax return when you are not allowed, then you can simply enter the same cost basis as the selling price. This will reconcile your tax return with your Form 1099-B Proceeds which is what the IRS is comparing.

Wash Sale ends:

The wash sale disallowed is not added to the net gain/loss rather it is adjusted and suspended so that it does not affect the total gain or loss for any pending wash sales. The rub is that the broker only knows when a wash sale occurs, not when a wash sale no longer exists. This can spill over between two tax years. Likewise you can have a wash sale during a tax year, and then fully dispose of the stock in the same year which would eliminate the wash sale rule for the final sale of the same stock.

It's up to you to know when you no longer have to consider the wash sale rule.

Example:

X bought 5 shares of ZZZ stock, at $5 per share, then sold it for $3 per share, however immediately before the original 3 shares were sold, X bought another 5 shares at $5.00 per share.

$25 for the first block of shares

15 is the proceeds creating a $10 loss

The $10 loss is now added to the cost of the new shares for an overall cost basis of $35.

Once the second block of shares is sold (5 shares with cost basis of $30) without any repurchase with in the 60 day window (30 days before or 30 days after the sale), and if they are sold at a loss, then no wash sale exists on the sale, and a loss is allowed.

If you are e-filing your tax return, then mail your statements (1099-Bs or other document showing detailed sales information) 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)

@mister_ee_man

Re: Since my 1099-B has more than 3000 transactions from Motif Investing, TT cannot import it and...

mister_ee_man — Tue, 11 Mar 2025 01:04:11 GMT

I have many thousands of transactions and many thousands of washsales. Can't enter each one separately.

Can I enter the totals separately for each stock/security? (total proceeds, total basis, and total washsale are summed up for each stock). I only traded like 31 different stocks so can't I just put 31 entries in using the 31 totals for each and put various for the buy date and put the date of last sale for each as the sale date?

Re: Since my 1099-B has more than 3000 transactions from Motif Investing, TT cannot import it and...

DaveF1006 — Mon, 17 Mar 2025 22:28:41 GMT

Yes, you may summarize stock transactions. Here is the procedure.

Open or continue your return.
Go to stock sales.
Answer Yes to Did you sell any of these investments in 2024?
- If you land on the Let’s finish pulling in your investment income screen, select Add investments.
On the Let's import your tax info screen, select Enter a different way.
On the OK, let’s start with one investment type screen, select Stocks, Bonds, Mutual Funds.
Continue through the interview and select Enter sales totals instead when prompted.
You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and categories. When finished, select Continue.
You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen.

Once you entered the information, you may electronically file the return but there are additional steps you may need to make after filing.

You may need to mail Form 8949 along with Form 8453 and copies of your broker's year-end statements that show the individual transactions. This is required if your summaries include adjustments (like wash sales) or if the transactions fall outside certain categories (e.g., Box A or Box D transactions without adjustments).
Exceptions: If your transactions are in categories A or D (short-term or long-term covered transactions without adjustments), you may not need to mail additional documentation. TurboTax will inform you whether you need to mail in this additional information.
Sometimes, you can use your broker's year-end statements instead of Form 8949. Make sure they have all the required information and are similar to Form 8949.