Hello I have a family accountant helping me with my taxes, and I started day trading in 2023 so this is my first year reporting on it. [Please be kind]: I admit I jumped in without enough preparation and studying, and took losses and $16k with of wash sales.
Questions:
(1) Does my accountant need ALL transactions listed on the 1099, or only the main gains/losses sections? I'd like to avoid supplying every single transaction if possible.
(2) I understand I have to report the Wash Sales in a form 8949 with code "W." Can I simply enter only the securities with the wash sales, or do I have to have every transaction for the whole year?
In general, what would be the easiest approach to file so I can share with the IRS whatever info they need, taking into account my wash sales of $16k?
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Many people prefer entering a 'summary' of sales transactions, and sending a copy of their 1099 along with Form 8949, rather than listing every transaction.
Here's How to Enter a Summary in Lieu of Individual Transactions and Mailing Form 8949 for Summary Totals.
For Wash Sales, you need to enter each transaction, and enter the wash sale loss in box 1g.
Thank you! But...
How do you enter a summary? And when you say "send a copy of1099 do you mean the entire thing? Mine is 50 pages...
Follow the instructions in the link on summarizing, according to whether you're using TurboTax Desktop or TurboTax Online (desktop is recommended for direct access to the forms).
In the interview after you choose 'Stocks, Bonds, Mutual Funds..', Continue, Skip Import, enter Broker Name, indicate No for employee stock, Yes to more than three transactions, etc.
On your 1099-B, sales should be summarized for you by Category. You are entering the Category Totals.
You don't have to mail all 50 pages of your 1099-B; in fact, you may not need to mail any of it, (or just part of it), depending on what types of sales you have. A spreadsheet or PDF are acceptable, too.
You only need to mail the IRS a copy of your 8949 (along with Form 8453) if you entered sales section totals for one or more sales categories (instead of each individual sale) and one of the following is true:
Here's more info on Mailing Form 8949 for Summary Totals. Your 'Filing Instructions' page of your return PDF will tell you what/if you need to mail.
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