Is there a way to manually update the 1040 form? I have capital gains but Turbo Tax is not able to import the large number of transactions for the 8949.

[fanfare · Accepted solution]

@rsdaltx 

As an active investor, be aware that your category Box A or Box D sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a or Line 8a.

No mailing is necessary. No attachment is necessary.
--
If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

Enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form (Line 2) to know how much to subtract which gives you the Schedule D line 1a totals. Be sure to NOT check the adjustments box in the summary window.
--
Alternatively, if entry of Wash Sales is too tedious,
summarize and check the box for adjustments and enter the disallowed amount.
This summary will go on Schedule D Line 1b.
You will be making the mail-in election.

[rsdaltx]

Thanks for the information. I don't think that wash sale rules apply since all the trades were crypto currency. I think I can go through normal means but one exchange has more than the 4k transactions limit so I'm going to try and chop up the one large file and import smaller amounts.

[rsdaltx]

Also, I think the 8949 may be required because I didn't get a 1099-B from the exchanges.

[fanfare]

You didn't mention crypto at first.

If your crypto exchange does not give you a 1099-B, Form 8949 or CSV in the form and manner of Form 8949,
you have to assemble that information yourself,
or pay for a third-party app to do it.

You're right, without a 1099-B your Box category is C or F. There is no detail reporting exception for those categories.

You can still elect the mail-in option.

[fanfare]

TurboTax limit on number of transactions is  a total limit, so importing in parts won't help.

[rsdaltx]

Yeah I used a service to collect the transactions and convert to 8949. I have PDF and CSV formatted for TT. The large file is 394 pages long. Mail in seems impractical but that may be the way to go if necessary.

[Mike9241]

As of December 2021, there is no crypto wash sale rule in place–yet. The IRS officially considers digital currency to be property rather than a security. This means that you could technically sell cryptocurrency you own at a loss and repurchase the same cryptocurrency without having to observe any waiting period in-between. And you could claim capital losses or capital gains on your taxes accordingly.

That’s an advantage for cryptocurrency investors but there is something of a catch. This rule applies to cryptocurrencies that are not securities. It does not, however, extend to cryptocurrency stocks or funds, of which there are several.

[fanfare]

@rsdaltx 

you need to put your csv file into Excel (or whatever spreadsheet software you use).

rearrange the columns to be in the order of Form 8949.

then select a font and spacing that will let you put more than 10 transaction on one sheet of paper.

Put a heading on the top with your Name SSN and tax year.

mail it to the address designated by IRS for such mailings.

[rsdaltx]

Thanks for the tip

[rsdaltx]

Looks like your comment about offshore accounts disappeared. Any they are all US based exchanges and I believe they only have to report if gains are over $10k. My gains were less so no 1099-B