bypass8949

Forum|Forum|2 years ago
April 1, 2024
1 reply
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I am using the 2023 desktop version of TurboTax Deluxe. I have reported both short-term capital gains (with wash sale adjustments for some but not all of my transactions) and long-term capital gains (with no adjustments) using the summary method. (I will file Form 8949 with the IRS separately after e-filing.) Both the short- and long-term entries show up on Schedule D and on the Capital Asset Sale Worksheet (#1) . But only the summary of the short-term sales show up on the TT Form 8949 - presumably because of the wash sales. (On the worksheet, on the line for the long-term gains, there's an entry that reads "BYPASS8949.")

It's not clear to me why TT is producing a Form 8949 at all, given that I am using the summary method of reporting. But if it is going to send the IRS a Form 8949, why doesn't it include both the short- and long-term gains?

I just realized that TT did the same thing in 2020 when I had the same situation with short-term gains with adjustments and long-term gains without.

Thanks.

rjs

Level 15

TurboTax produces Form 8949 for the short-term sales because Form 8949 is required when there are adjustments. There is no way to show adjustments except by using Form 8949.

What you have to send to the IRS is not just Form 8949. You have to send the details of all the individual sales, not just a summary. You can do that by entering each individual sale on Form 8949, or by sending a statement containing the same information as Form 8949 in a similar format. Most people satisfy this requirement by sending a copy of the 1099-B section of the brokerage statement that lists all the individual sales.

Even if TurboTax put the summary of your long-term sales on Form 8949, you would still have to send the detailed listing of the individual sales to the IRS. What the IRS wants is not Form 8949. They want the details of the individual sales, either on your tax return (on Form 8949) or in a separate statement.

fanfare

Level 15

@rjs

@mikeraker
Detail Reporting Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary. No attachment is necessary.