Form 8949 Stock Sale Question

[syoung123]

Hello - I have two brokerage accounts, one with Merrill and one with Fidelity, that both had many sale transactions of various stocks.  All the stock sales, short term and long term, were on 1099B for which the cost basis were reported to IRS and there were no adjustments.  Instead of listing all the stock sales individually on form 8949, can I combine the total sale amount for each brokerage company into one line item on schedule D, such as one line item for short term on line 1a, and one line item for long term on 8a?

For instance, ML had sales of 10 stocks for $10,000 and Fidelity had sales of 20 stocks for $20,000.  Can I combine the stock sales for both companies into $30,000 and put this total on line 1a on schedule D directly (and not use 8949 at all)? 

If I can just report the combined total on schedule D, how would I enter the info on TurboTax Premier version?  

[HelenC12]

Please see the following information to properly report your stock sales. Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, Box A short-term covered or Box D long-term covered.

You'll enter the summary info instead of each individual transaction. Select your product below for instructions:

TurboTax Online:

1. Open or continue your return (if it's not already open) and search for stock sales
2. Select the Jump to link in the search results
3. Answer Yes to Did you sell any of these investments in 2022?
   • If you land on Your investment sales summary, select Add more sales
4. On the OK, let’s start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue
5. On the Let's import your tax info screen, select I'll type it myself
6. Step through the interview and select Sales section totals when prompted to choose how to enter your sales
7. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue
8. You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen

TurboTax CD/Download:

1. Open or continue your return (if it's not already open) and search for stock sales
2. Select the Jump to link in the search results
3. Answer Yes to Did you sell any investments in 2022?
   • If you land on Here’s all the investment accounts we have so far, select Add more sales
4. Answer Yes to Did you get a 1099-B or a brokerage statement for these sales?
5. On the screen Let Us Enter Your Investment Sale Info, select I’ll type it in myself and Continue
6. Enter the name of your bank or brokerage on the screen Which bank or brokerage sent you this form? and Continue
7. On the screen Tell us about your 1099-B, select I’ll enter a summary for each sales category
8. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue
9. On the screen Do you have another sale to enter from your 1099-B? select Yes to enter more sales from your 1099-B, or No to see a summary of the sales you already entered, then select Continue
10. Once you’ve entered all the sales on your 1099-B, you’ll see a summary of all the sales reported. Select Done

Instructions for TurboTax CD/Download users with adjusted cost basis:

1. Sign in to TurboTax Online. You’ll eventually return to TurboTax Desktop
2. Start a new tax return
3. If you have a TurboTax 2021 tax return you filed last year, follow the steps below to upload it to TurboTax Online. If not, skip to step 10
4. In the left navigation menu, select Tax Tools, then select Tools
5. Select Transfer last year's TurboTax return from your computer
6. Select Continue on the Are you sure? screen
7. On the screen Transfer Last Year’s TurboTax Return, select Choose File to select your TurboTax .tax2021 tax return you filed last year, then Continue
8. The screen will display Uploading your TurboTax Desktop file, along with a spinning circle
9. When the screen changes to Transferring Your Information, select Continue
10. Select Federal in the left navigation menu
11. On the screen Let's work through your income this year, select Let's get started
12. On the screen Does the income from last year's return still apply?, answer according to your situation and select Continue
13. On the screen Let's find other income we may have missed, answer according to your situation and select Continue
14. When you see the screen Wages and income, select add more income.  Scroll down to the Investment income section and select Show more
15. Next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), select Start
16. You're in the stocks tax topic now. If you're prompted to upgrade to Premier, answer Yes. Answer the questions on the following screens and import your stocks when prompted
17. Once you're done importing your stock transactions, select Tax Tools from the left navigation menu, then select Tools
18. Select Save your 2022 return to your computer. This will save your .tax file to the Downloads folder on your computer
19. Open your TurboTax desktop software, and select Find a Tax File on the homepage. Locate the file you just downloaded and select Open to import it into the program. You can now finish your taxes using the desktop software

Related Information:

• How many stock transactions can TurboTax handle?

[syoung123]

Thank you for the instructions.  Well - I just realized that in one of the brokerage accounts which had both short term and long term stock sales gains/losses, one of the sales in the short term category had an amount in column (g) as wash sale - loss disallowed.  So, for example:

Merrill - brokerage account #1, all with cost basis reported to IRS

total short term loss - ($10,000), no adjustments

total long term gain - $20,000, no adjustments

Fidelity - brokerage account #2, all with cost basis reported to IRS

total short term loss - ($5,000), with one sale for a loss of ($200) that had wash sale loss disallowed of $10 - so ($4,800) of the sales did not have adjustments 

total long term gain - $6,000, no adjustments

Can I still combine all the short term and long term gains/loss for both brokerage accounts and report them on line 1a (short term) and line 8a (long term) on Schedule D directly (not put them on form 8949 first), and just report only that one sale that had wash sale adjustment on form 8949?  Or do I need to list all the stock sales for that category (all the Fidelity gain/loss from short term sales) on 8949 if only one of the sales had adjustment on column g of the 1099B?

Example

Short Term - 

Schedule D, line 1a -  loss of ($14,800) = Merrill total loss of ($10,000) plus Fidelity loss of ($4,800), excluding that one sale under Fidelity that had wash sale disallowed adjustment

Schedule D, line 1b - loss of ($200) = the one sale in Fidelity that had a loss of ($200) with wash sale disallowed (still cost basis reported to IRS)

Form 8949 - report the sales that had a loss of ($200) on Part I, Box A, and show the wash sale disallowed - line (f) code "W", and line (g) a positive of $10 for the amount disallowed

Long Term -

Schedule D, line 8a - gain of $26,000 = Merrill gain of $20,000 and Fidelity gain of $6,000 (nothing on form 8949)

[RobertB4444]

You can report all of the sales in that category as a lump sum MINUS the one transaction with the wash sale adjustment.  Report that transaction separately.  Exactly as in your example.

@syoung123 

[syoung123]

To confirm -

1.  The only item on form 8949 is the one sale with disallowed wash sale, on part I, box A checked ( short term with basis reported the IRS).  Then it is carried to schedule D, line 1b.

2.  All others sales under the two different brokerage companies can be combined and reported on schedule D as one total, on line 1a for short term and line 8a for long term.  There would be no entries of these items on form 8949.

[DianeW777 · Accepted solution]

Yes, you are correct.  You should see no gain or loss from the wash sale because the basis has been increased until there is no longer a wash sale situation.

Yes, the other two summarized sales would be reported as you indicate and the Form 8949 is not required if there is no adjustment (change) in the totals reported on your 1099-B.

Wash Sale Rule Defined:

• A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.
• It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
• The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain.

Affect on Cost Basis:

• The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale.
• When all shares are sold and there is no repurchase, that increased cost basis will be used in full and used to determine gain or loss.

[sake]

I have a similar situation but for such teeny amounts that I'm ticked. I sold a DRiP, partly because the company had changed brokers at least 6 or 7 times. Anyway, I didn't do the reinvesting myself. The wash sale loss (es)  disallowed for 3 Quarters in 1g are for 75 cents, 60 cents and 43 cents for a grand total of $1.78. Can I combine those three on the 8949 or do I have to mail in three separate forms? And can I add them to the cost basis in 1e?

Everything else should be able to be combined for Schedule D, correct? Box A and Box D checked as appropriate, and also Box E because the latest broker didn't have the records from earlier brokers  who had them in 2014 and I'm not sure who that was at this point.

Thanks very muchl

[fanfare]

wash sales have to be itemized.

if you summarize, you have to mail in the details.

enter your three transactions separately.

the detail reporting exception is for Box A and D

there is no exception for other boxes, like Box E, for example.

@sake 

[fanfare]

After itemizing wash sales on Form 8949, use the subtotal results on the bottom of that form (Line 2) to know how much to subtract which gives you the correct Schedule D line 1a totals so it all sums to the proceeds on your consolidated 1099-B.

@sake 

[sake]

Thank you for your help.  I'm glad I didn't have this problem with selling other DRiPs in the past. Such an all around chore.

[ffchou2020]

how do I enter the total short and long term cost basis and proceeds IN TOTAL DIRECTLY IN SCHEDULE D using turbot tax premier without itemizing each transactions?

[JamesG1]

You may elect to report summary information and upload 1099-B information by .pdf.

Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, Box A short-term covered or Box D long-term covered. 

You will enter the summary info instead of each individual transaction.  Follow these steps.       

1. Open or continue your return.
2. Select Federal down the left side of the screen.
3. Select Wages & Income down the left side of the screen.
4. Select Show more to the right of Investments and Savings.
5. Select Start / Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
6. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2021?
   • If you land on Your investments and savings, select Add investments.
7. At the screen Relax. We got it, select Continue.
8. On the Let's import your tax info screen, select Enter a different way.
9. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
10. At the screen Which bank or brokerage, enter the information.
11. Do these sales include any employee stock, enter No.
12. Do you have more than three sales, enter Yes.
13. Do these sales include any other types of investments, enter No.
14. Did you buy every investment listed, enter Yes.  Continue.
15. On the screen Now, choose how to enter your sales, select Sales section totals.  Select Continue.
16. At the screen Look for your sales on your 1099-B, select Continue.
17. You will now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your IRS form 1099-B, IRS form 8949 and / or Schedule D Capital Gains and Losses for the amounts and category. When finished, select Continue
18. You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen.
19. When completed, close the record and click Continue.
20.  At the screen Now, we'll help you upload your 1099-B since the IRS requires a copy, browse and select your document.  Select Continue.
21. When you upload your document, your filing instructions will not show that anything needs to be mailed in, and no IRS form 8453 will be generated.

@ffchou2020 

[sake]

James, thank you for all the detail you provided!

Here is a generic sample of what I'm trying to do for Box E for the actions not reported by the broker.

Attachment to Form 8949, Part II for XXXXXXX. I do not have the information they want for an 8949 but here is a generic sample for a substitute 1099-B for those early years, taken from the company's own statements sent to me. (Apparently, brokers don't have to report anything prior to 2011. ) However, I don't know what the actual sales amounts were on 12/01/2022, and don't know how to "convert/transfer" many, many entries to an 8949. The shares were held, not sold, prior to 12/01/2022. Do you have any suggestions, please? Thank you.

Box 1b Date Acquired	Box 1c Date Sold	Quantity Sold	Box 1d Proceeds	Cost 1e Cost or Other Basis	Box 1g Wash Sale Loss Disallowed	Box 4 FIT Withheld	Transactions Description
05/11/1993 (Initial Deposit)	12/01/2022	1.358	40.50	55.00	0.00	0.00	Sale of Shares
06/10/1993 (Div. reinvested)	12/01/2022	.009	.41	46.554	0.00	0.00	Sale of Shares
08/03/1993 (Addtl Deposit)	12/01/2022	.868	50.00	57.625	0.00	0.00	Sale of Shares
09/07/1993 (Div.  reinvested)	12/01/2022	.012	.67	57.00	0.00	0.00	Sale of Shares

[JamesG1]

Are you able to download these entries into an Excel file or CSV file and create your 1099-B?  

You do not know the actual sales amounts?  What has been reported to you?  

Are you using Desktop or Online?

Please clarify.

@sake 

[sake]

Hello again. All I have at this stage for 1993 through 2013 are paper statements from the successive brokers the company had over the years. I'm trying to create an Excel file or something from those to create the 1099-B for the non-covered (non-reported to IRS) transactions. Hopefully, I can then attach a PDF of the 1099-B, and also do a one-line entry on Form 8949 (or Schedule D?). When selling other DRiPs in the past, I have never had a 1099-B where the broker didn't list everything! This year, I have two companies like this. I guess the rules have changed for them?

As far as sales amounts, all I have for Non-Covered is a total which I have to hope I can match after entering the individual paper statements in an Excel file.

I am using Desktop version of TT.