Preparing Schedule D with several hundred stock transactions

[GGBJr]

I've been using the Premier version of Turbo Tax.  Are brokers able to download to me an Excel file (or equivalent) that contains all of the stock transactions for the year in a form that can be read directly into Turbo Tax?  Entering several hundred transactions one at a time is a no-no!!!

Gordon

Houston, TX

[NCperson]

most firms provide files that are downloadable into TT..... in the CD/ Download version of TT, open the tax return, and then click "file>import" on the toolbar and you should be able to download the records.  I suspect the online version works similarly. 

are you using the online or CD / download version? 

[Critter-3 · Accepted solution]

You can quickly enter this manually.  Your brokerage statements should include a summary of your transactions, grouped by sales category.

There are seven possible "Box" designations that indicate the holding period (Long/Short Term) and the reporting status.  These are the only ones you have to summarize. If you want to manually enter your 1099-B as the summaries.

1. Tell us about your 1099-B sales for this BOA account
1. Answer the questions
2. Since you have more than a few BOA sales, we recommend entering sales section totals
1. Continue
3. Before entering sales section totals, take a moment to find them on your 1099-B
1. Continue
4. Now, we'll enter one sales section total on your BOA 1099-B
1. Use the drop down menu to select the correct designation.

Code A. This code indicates a short-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 1a, or on Form 8949 with box A checked with totals being carried to Schedule D (Form 1040), line 1b.

Code B. This code indicates a short-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box B checked with totals being carried to Schedule D (Form 1040), line 2.

Box C. Report on a Part I with box C checked all short-term transactions for which you can't check box A or B because you didn't receive a Form 1099-B (or substitute statement).

Code D. This code indicates a long-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 8a, or on Form 8949 with box D checked with totals being carried to Schedule D (Form 1040), line 8b.

Code E. This code indicates a long-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box E checked, with totals being carried to Schedule D (Form 1040), line 9.

Box F.  Report on a Part II with box F checked all long-term transactions for which you can't check box D or E because you didn't receive a Form 1099-B (or substitute statement).

Code X. Use this code to report a transaction if you cannot determine whether the recipient should check box B or box E on Form 8949 because the holding period is unknown.

Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.

1. Select the Jump to link in the search results.
2. Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
• If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
3. When asked how you want to enter your 1099-B, select I'll type it in myself.
4. Select or enter your brokerage on the next screen and continue.
5. On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
6. 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.

When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

You will have to mail a copy of your 1099-B to the IRS.  TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it. 

IRS requires details to be listed on a Form 8949,
or on your other forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax seems to be adding this feature now).
Only Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.
If you don't have a 1099-B from coin base (crypto) your sales category is C or F.

There is no exception for these categories.

[Mike9241]

another option is to just enter summary totals for each type  a- f.  print out a copy of the 1099-B and form 8453  

https://www.irs.gov/pub/irs-pdf/f8453.pdf 

check the Form 8949 box. follow the instructions on the form. you need to send it and the 1099B within a certain time limit once your return is accepted. 

use a mail service where you can track the mailing

[fanfare]

@GGBJr 

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.
--
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.

[GGBJr]

I am using the CD version of Premier.  I suppose it will be key to use a broker/financial institution that provides such a download service.  Does TT take the Form 1099s that can be uploaded into TT and automatically prepare a Form 8949?

Thanks for your reply.

[GGBJr]

Thanks for your detailed response.

How does a pdf file get loaded into an e-file by TT?  Was this option available for the 2021 tax year?  It would have to be uploaded into TT by the user at some point, I would think, but where?  (Perhaps this option will not be available for efiling?)

I don't believe that all brokers offer the option of downloading 1099-B forms.  For those who do, I presume that TT is able to transpose them in order to prepare the Form 8949.  On the other hand, if there are no wash sale adjustments to be made, I assume that no mailing at all is required?  You noted that copies of the 1099-B would have to be mailed in to the IRS, but doesn't it already have this info?  (I do not want to snail mail a tax return to the IRS, especially if it exceeds 100 pages!)

Thanks again!

[NCperson]

@GGBJr  - you haven't mentioned the broker / dealer, but is it as simple as trying in TT to see if it on the list? Just launch your tax return, click file and inport.  you then just type in the name of the firm and see if it on the list......it's very simple. the 8949 is prepared automatically 

[fanfare]

@GGBJr 

When IRS says Form 8949 is not required, no mailing is necessary either.

In this case, it makes no difference whether your broker is listed as a Financial Partner or not.

--

the rule (explained in IRS instructions) is :

a) covered transactions without adjustments do not require Form 8949.
b) covered transactions with adjustments (i.e. wash sales) must be detailed on some 8949 or your other forms with the same information and presented in the manner of 8949.
--
If you summarize a) no mailing is necessary. No attachment is necessary.
If you summarize b) or summarize other categories either attach (*) or mail in the details .
Category Box A and Box D are your covered transactions.

a) is the only Exception to the IRS requirement to list in detail every closing transaction you make during the year.

(*) TurboTax Online may prompt you to attach a PDF file of details, but at this time CD/download won't. Go figure.