After submitting electronically, Turbo Tax gave me the required form 8453. I have to submit form 8949 (Sales and Dispositions of Capital Assets, for Schedule D.Whattodo?

[ruth_craig]

There are many transactions on my 1099-B. Do I have to list all of them on form 8949? Could I instead submit the 1099-B to the IRS (it is 19 pages long)?

[JotikaT2]

It depends.

Form 8949 is typically completed when you prepare your tax return.  If you only reported the summarized schedule with your electronically filed return, you will need to send the supporting documentation for Form 8949 (as outlined at the bottom of this link) along with transmittal Form 8453.  

Where is Form 8949?

Form 8453 instructions 

[baldietax]

Note Form 8453 states "Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information)" so you can just send the 1099-B as the "statement with the same information" you shouldn't need to fill out 8949.

This generally happens when you enter 1099-Bs as sales summaries but they have adjustments for wash sales, AMD or non covered categories.  To avoid in future years, if you don't have many adjustments you can enter those "one by one" which will send Form 8949 electronically with the details, and input the rest of your 1099-B as sales summaries without adjustments.

[ruth_craig]

Thank yous very much for your help.  I will just submit the 19-page 1099-B rather than trying to fill out the form 8949.  Honestly, I would not know how to fill it out.  There was a wash sale in there somewhere, perhaps this is why I got the message from TurboTax to send in additional paperwork.  There were other things that I don't understand.  I don't think I would have been able to fill in the original tax return item-by-item because (i) there were so many items and (ii) it is not clear to me with my limited knowledge which items would have needed to be filled in one by one.

I will send the IRS the 1099-B (and also a 1099-B substitute I got from the same brokerage firm) and see if that works.

Again, much appreciate your help.

[ruth_craig]

My taxes have been accepted.  I am thinking that sending the 19-page 1099-B to the IRS might not be that helpful to them, because it is so long.  Probably only a few of the items on there are the ones that need to be listed on the supplemental form 8949.  I know there are some Wash Sales.  Might I ask what the other things you mentioned are, AMD and other non-covered categories?

I am going to try to figure out which items I should list on the supplemental form 8949.

Thanks again for your help.

[baldietax]

on your 1099-B if you have anything in...

col 1f  for AMD = Accrued Market Discount; an adjustment for market discount bonds to move the discount paid out on redemption from capital gain on Schedule D to ordinary income on Schedule B - a lot of people are getting this from discounted Treasury Notes they bought on the secondary market)

col 1g for wash sale adjustments

or anything in the 1099-B in a section referred to as "NONCOVERED TRANSACTIONS-Cost basis not reported to IRS - Form 8949, Part I, (B)" or similar - this is for securities purchased before the legislation requiring brokers to track cost basis back in 2011-13, or other scenarios where the cost basis is 0 (e.g. short options that expire) or not available for some reason.

I am not a CPA but I suspect that just sending IRS the pages for any transactions that fall into these buckets will be sufficient as that is what would be on your 8949 if you input those items as "one by one" and the rest as sales summary, I doubt they need the whole 1099.  Worst case they ask for it later but I suspect you'll never hear about it again - I am skeptical that this is even looked at below a certain threshold and all this mailing of 1099Bs is generally a waste of time for everyone involved.  TT doesn't provide good guidance on how to file this stuff electronically when inputting a 1099 manually, and seems to encourage a lot of paper mailing to the IRS that could be avoided.

[ruth_craig]

Well, I looked more into the form 8453 TurboTax gave me with an X next to  Form 8949 on the last line.  It seemed as if I was being suggested to send in Form 8949.  However, I find that TurboTax had already filled out Form 8949 and it was submitted when I submitted my taxes.

Just very confused. 

For the Form 8949 that was submitted with my taxes, I used the Total transactions (Short and Long Term), I did not list every transaction.  Looking through the 1099-B again, I did see that 3 of the many transactions were "Wash Sale Loss Disallowed."  At first I thought TurboTax was telling me that I would have to report these to the IRS with an 8453 form.  Now I am not sure whether or not I should do that?

Thanks again for the help on this forum, I guess I am lucky in that my taxes have been submitted.

[baldietax · Accepted solution]

ok so it sounds as tho you entered the 1099 as "sales summary" with just the totals but using some adjustments (code W etc)?  when you put it into TT like this, it will create Form 8949 with a summary entry to show the adjustment, but triggers the need to mail in the statement as the individual details on that form are missing (dates etc).  The Form 8949 may say something like "see attached statement" in the first column.  And that triggers Form 8453.  It sounds like it's referring to those wash sales if that's the only adjustment category used showing on the 8949 referring to "see attached statement" etc.  If your return was accepted then I think you're in good shape and just mail in the 8453 either with the entire 1099 or just the pages with those items and celebrate.

for future filings if you encounter this again, entering the wash sales as "one by one" will put those on 8949 with the specific details of each sale; and then subtract those from your totals and put the remaining balance of the 1099 in separately as a "sales summary", it will all be consolidated on Schedule D and no Form 8453 should be needed.

[ruth_craig]

Ok, Now I understand a bit better.  When I did my taxes on TurboTax, I just entered the totals from the "Summary of Sale Proceeds" on my 1099-B.  I didn't understand anything about adjustments such as wash sales.

I actually just recently entered the 3 transactions involving wash sales on another form 8949.  Do you think it would be ok for me to send this other 8949 with the Form 8453?  Just trying to make things easier for the IRS.

I am learning a lot, and thanks again.

[baldietax]

no worries - so it depends how you input the 3 wash sales - if they were put in as sales summary also and the Form 8949 doesn't have the details (description, dates etc), then I don't think that's sufficient as that went electronically already, and you should send the 1099B for those items instead.  (and if the Form 8949 does have these details... then I'm not sure what's triggering the need for Form 8453... maybe some other issue).

[ruth_craig]

Ok, got it.  I will send the 8453 TurboTax kindly generated for me, along with the relevant portions of the 1099-B.  Now I am really done.  Much appreciate your detailed responses.