Entering 1099-B Summary #'s

[MartyDC]

In past years, I THINK I have been able to enter just my "Box A" & "Box D" Summary Proceeds, Cost Basis, & Realized Gain/Loss into TT.  This year, using the "step by step" mode, TT expected me to enter EACH sale individually.  I am trying to use "forms" mode to get around this problem, but when it comes to Capital Gains income, TT is very particular about which forms you can fill out directly.  

Any suggestions?

[rjs · Accepted solution]

Enter the investment sales in Step-by-Step. When you get to the screen that says "Now, choose how to enter your sales," click on "Sales section totals," then click Continue. Two screens later you will be able to enter the total proceeds and total basis. (You don't enter the gain or loss. TurboTax calculates that.) On the same screen you have to select the "Sales section": short-term or long-term, basis reported or basis not reported.

[Mike9241]

there can be 6 or 7 different codes on the 1099-B 

trades with codes A and D that do not have adjustments can each be entered as totals, no details,  to appear on lines 1a and 8a of schedule D.

other than these, details of each trade must be provided to the IRS including types A and D with adjustments such as wash sale or market discount adjustment. these get reported on form 8949 and the totals from these forms are transferred by Turbotax to schedule D 

[rjs · Accepted solution]

Transactions do not have to be listed individually on Form 8949. Multiple sales can be summarized on one row of Form 8949 using adjustment code M, in addition to any other adjustment codes that apply. See Exception 2 under "Exceptions to reporting each transaction on a separate row" on page 4 of the IRS Instructions for Form 8949.

If you make summary entries ("Sales section totals") in TurboTax as I described above, TurboTax will put the totals on Schedule D lines 1a and 8a for those transactions that meet the requirements for those lines. For transactions that cannot be included in Schedule D lines 1a and 8a, TurboTax will make summary entries on Form 8949 as described in the IRS instructions.

[MartyDC]

You can enter totals using the "step-by-step" mode, if you opt out of downloading  your 1099-B from your broker, and then click thru a few screens until you get to this one:

[MartyDC]

While you could go to forms mode and enter figures directly into Form 8949, I would recommend using the "step-by-step" mode because the 1099-B entry screen doesn't require that you know the letter codes.

[rjs]

You cannot make any entries directly on Form 8949 in forms mode. Individual sales or summary entries have to be entered on a Capital Asset Sales Worksheet. From there the information flows to a Form 1099-B Worksheet, and then to Form 8949 and Schedule D. Entering investment sales in forms mode is very complicated and error-prone. That's why TurboTax strongly recommends using Step-by-Step mode to enter investment sales.

[MartyDC]

You are correct about the 8949.  For the benefit of future readers, I should mention that TT does allow direct entry of summary #'s to the "1099-B Worksheet".  There's a box in the worksheet specifically for this purpose:

I only use this method between Jan 1 and the date that the brokerage firms release their 1099-B's.  During that period, most brokerage statements will show your year-end short term and long term gains and losses.  You can use this info to do a preliminary Scd D.

As TT makes quite clear, the recommended way of entering investment income is by directly downloading your 1099-B's into TT.