Broker 1099B showing single transaction broken into pieces??

[rahosmer]

I sold $25000 of a mutual fund on 1/11/2023.

My brokers 1099B shows 5 lines, with 5 different amounts, same purchase date, same sold date, for that one sale which do total to $25000.

I think most of these pieces are wash sale matches showing how they matched up the portions of the sale with purchases that were within the 61 day window that triggers wash sale loss disallowance.

When I downloaded the 1099B from brokers website into TurboTax, each of these 5 pieces became a separate record in TurboTax.

Can I aggregate the data from all these 5 pieces into a single record in TurboTax for this one transaction, or do I have to leave them as separate records?

It seems to me that since as far as I know, this was only one transaction, not 5 transactions, so it should only be reported as one record in TurboTax, but wonder about how it was reported to the IRS.

If it was reported to the IRS in 5 pieces, would I get in trouble by aggregating them into a single transaction on my return?

Please advise.

[JamesG1]

The transaction(s) has been reported to the IRS in the same manner as you are seeing the transaction reported on the brokers IRS form 1099-B.

Do the five lines all represent one sales category such as Box D long-term and basis reported to the IRS or do the lines represent multiple sales categories?  

If you aggregate the transactions, make sure that you report the same sales categories with the same Proceeds totals that the brokers IRS form 1099-B reported.

[rahosmer]

Hi JamesG1-

Thanks for your response.

Yes, the 5 lines all represent the same sales category, short term noncovered, basis not reported to IRS, box B checked.

All 5 lines have exactly the same date acquired, and date sold, and the 5 amounts for proceeds in each line total to the $25,000 total transaction proceeds on the date sold.

However, the first 4 lines are showing an amount for Wash Sale Loss Disallowed, and the 5th line is showing a Loss Amount (no wash sale on that one).

The proceeds amounts for the first 4 lines each match up with purchases of the same mutual fund that were within the 61 day window for wash sales, so it seems that is just showing how the wash sale amounts were calculated.

Since the date acquired, cost basis, wash sales, and gain/loss for this sales category are NOT reported to the IRS, all the IRS would see is 5 different proceeds amounts with the same date sold that total to $25,000, nothing else. 

Are you sure that my broker would send a 1099B to the IRS that shows all these 5 lines, instead of just one line showing the $25,000 total sale and the date sold for that entire transaction? 

If so, if I aggregate them into one TurboTax record with same date acquired, same date sold, total the proceeds to $25,000, total the Cost Basis, total the Wash Sale Disallowed, total the Gain/Loss amount, will I get in trouble with the IRS?

Please advise.

Thanks!  

[JamesG1]

"Are you sure that my broker would send a 1099B to the IRS that shows all these 5 lines, instead of just one line showing the $25,000 total sale and the date sold for that entire transaction?"

I assume that the broker reported in accordance with IRS guidelines.  IRS form 8949 Sales and Other Dispositions of Capital Assets code B reads (B) Short-term transactions reported on Form(s) 1099-B showing basis wasn’t reported to the IRS.

You should report the correct basis and pay the correct amount of tax owed for your income level.

Do you have access to a PDF file of the IRS form 1099-B reporting the $25,000 transaction(s)?  If so, you may be able to report the Sales section total and upload a PDF of the IRS form 1099-B or mail a paper copy of the IRS form 1099-B to the IRS after electronically filing.

In TurboTax Online Premium, enter summary information instead of each individual transaction by following these steps:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Scroll down to Investments and Savings and click the down arrow to the right.
• Click Start / Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
• Click Add investments.
• At the screen Let's import your tax info, click Enter a different way.
• Click on Stock, Bonds, Mutual funds. Click  Continue.
• At the screen Which bank or brokerage is on your 1099-B, enter the information. Click Continue.
• Do these sales include any employee stock, click No.
• Do you have more than three sales on your 1099-B, click Yes.
• Do these sales include any other types of investments, click No.
• Did you buy every investment listed on your 1099-B, click Yes.  Click Continue.
• At the screen Now, choose how to enter your sales, select Sales section totals.  Click Continue.
• At the screen Look for your sales on your 1099-B, click Continue.
• At the screen Now enter one sales total on this 1099-B, enter information. 
• Under Sales section, select Short-term basis not reported to IRS (noncovered).
• Select the box I need to adjust my total cost basis.
• Enter the adjustment and select code B (cost basis incorrect on form).
• Click Continue.
• At the screen Review your sales section total, verify correct gain/loss.  Correct by clicking the pencil icon. or Click Continue.
• At the screen Now we'll help you upload your 1099-B since the IRS requires a copy, select Browse.
• Upload the 1099-B in PDF format from your provider.
• Upload successful, click Continue.