1099's from Brokers

[MartyDC]

It's my understanding that IRS will accept a 1040 with only a Schedule D, and not the 8949 detail.   I realize that TT encourages you to directly download your trades from your Broker.  However I prepare a return for a family member who does a LOT of short-term trades.  (His return last year had an 8949 that was 50 pages long!)  Just wanted to check to see if I have to provide an 8949.

[rjs · Accepted solution]

You can omit Form 8949 only if all of the transactions meet the requirements to be reported on Schedule D line 1a or 8a. Any transactions that do not meet all the requirements must be reported on Form 8949. The requirements for Schedule D lines 1a and 8a are listed in the instructions for those lines in the Schedule D instructions, and under Exception 1 in the Form 8949 instructions.

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.