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How to Input Wash Sales on Form 8949 and Schedule D

Hello, I have two brokage accounts, one of them had over 100 sales with some wash sales.  I would like to find out how to report the capital gains for these sales on Form 8949 and schedule D.  I am making the entries manually instead of importing the 1099Bs from the brokage firms, so I prefer not to have to input each individual sale and have over 100 sales lines on Form 8949.  All the sales are transactions that the basis was reported to IRS (Form 8949 box A short term)

 

Brokage Account #1 (name “Merrill”) – No adjustments, so I can put the totals directly on Schedule D, and they won’t be on Form 8949?

Total of Short term gains - $5,000

Total of Long term gains – 2,000

 

Brokage Account #2 (name “TD”) – 3 short term gains are “wash sales” that I need to use Form 8949 to report the 3 wash sales adjustments.

Total of Short term gains including the wash sales on Form 1099B (Box A) - $4,000

3 short term gains that are “wash sales” (Box A, column f -W, column g – adjustment) – total to $300 ($100, $150, $50)

Total of Short term gains that did not have adjustments - $3,700 ($4,000 minus $300)

Long term gains - no adjustments - $1,000

 

On Form 8949, for Brokage Account #2 (TD), can I just list only the 3 wash sales with code “W” and “wash sale adjustment $” individually, and then group/combine the rest of the “non-wash sales” that don’t have adjustments (over 100 sales) into one line, so the total of these 4 entries on Form 8949 would match with Form 1099B from “TD” brokage firm?

 

For instance – Brokage Acct #2 (“TD”)

Form 8949 -

Box A “checked” – short term transactions with basis reported to IRS

Wash sale 1 – share # and description “stock name 1”, sale proceed = $100

Wash sale 2 – share # and description “stock name 2”, sale proceed = $150

Wash sale 3 – share # and description “stock name 3”, sale proceed = $50

Total of the rest of the sales that don’t have adjustments – description “brokage name TD”, there would not be any detail/data on number of shares, stock description, date acquired and date sold, sale proceed = $3,700 ($4,000 - $300 wash sale)

So there would be 4 lines on Form 8949 (3 wash sales and 1 total of non-wash sales).

 

Schedule D –

Part I (short term)

  • Line 1a - $5,000 (short term gains from “Merrill” with no adjustments)
  • Line 2a (Box A checked) - $4,000 (wash sales $300 and no-adjustment sale $3,700 from “TD”) – info transferred from Form 8949 indicated above.

Part II (long term)

  • Line 8a - $3,000 (“Merrill” $2,000 and “TD” $1,000 with no adjustment needed)

Or, instead listing the sales that do not have adjustments ($3,700) as one line item under Box A on Form 8494, can I just group the $3,700 with the $5,000 from “Merrill” on Schedule D line 1a to show a total of $8,700?   If I do this, Form 8949 would only have the 3 wash sales, and Schedule D line 1b would show $300.

My concerns are:

  1. If I put the sales of $3,700 that do not have adjustments as one line on Form 8949, the total of 8949 would match with the 1099B form “TD”.  However, since I group all these sales into one line on Form 8949, I won’t have the data to enter “share of stock and company, date acquired and date sold” on Form 8949.  Also, I think TurboTax would allow me to enter “VARIOUS” on the “date acquired” field, but I have to enter a “date format” on the “date sold” field.
  2. If I put the $3,700 directly on schedule D and don’t show it on Form 8949, I won’t have to worry about not able to enter “share of stock and company, date acquired and date sold” on Form 8949.  However, Form 8949 would only show the 3 wash sales, and without the non-wash sales, the total on Form 8949 would not match with the 1099B from “TD”
  3. I am not sure how IRS would allow the various methods of entries that I asked above.

Also, I am using TurboTax software to do the tax, but I plan to file it as paper return.  When I file the paper return, do I need to attach any document for the capital gains to the paper return?  Either TurboTax or the 1040 instruction seems to indicate I need to attach the brokage statement to the paper tax return.

 

Please advise.  Thank you.

 

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