Futures Trades

[gmans3682]

Do you only have to fill in the totals from the 1099-B for proceeds and cost basis?  Do you have to input the individual trades or provide the backup statements via form 8453?  The broker does not provide a full importable 1099-B for futures trades.

[baldietax]

if you don't have any adjustments (wash sales, AMD, noncovered categories) you can certainly simply input the 1099B as a "sales summary" with proceeds and cost basis.  You can enter adjustments/noncovereds as summaries also with adjustments, which will create Form 8949 but without the details and triggers the need to mail 8453 with statement.  This mailing is avoided by inputting these sales instead as "one by one" with the details; and the balance of your 1099B can be input separately as "sales summary" without adjustments.

I always input my 1099s and had about 30 adjustments which doesn't take long to enter and the rest as summaries is very simple.  Not familiar with futures, I did have some options reported as 1256 contracts which is a different process.  Short options that expire with proceeds and zero cost basis may be reported as noncovered securities which creates the need to either use one-by-one or mail the 8453 if you can't import.

[JamesG1]

If you are unable to download the 1099-B information from your broker, you may consider reporting summary information.   

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. 

• Select Personal across the top of the screen.
• Select Personal Income across the top of the screen.
• Select I'll choose what I work on.
• Scroll down to Investment Income.
• Click to the right of Stocks, Mutual Funds, Bonds, Other.
• At the screen Let’s finish pulling in your investment income, select Add investments.
• At the screen Let Us Enter Your Bank and Brokerage Tax Documents, select Skip Import.
• At the screen OK, let’s start with one investment type, select Stocks, Bonds, Mutual Funds and select Continue.
• At the screen Which bank or brokerage sent you this form, enter the information.  Continue.
• Do these sales include any employee stock, enter No.
• Do you have more than three sales, enter Yes.
• Do these sales include any other types of investments, enter No.
• Did you buy every investment listed, enter Yes.  Continue.
• On the screen Now, choose how to enter your sales, select Sales section totals.  Select Continue.
• On the screen Look for your sales on your 1099-B, select Continue.
• At the screen Now, enter one sales total, enter the information.  Continue.
• Select Add another sales total as necessary.  Continue.
• You will mail a paper copy of the IRS form 1099-B to the IRS.

@gmans3682 

[gmans3682]

When you mail a copy of the 1099-B would you include copies of the monthly statements.  The futures account does not provide a year end transaction detail summary?

[baldietax]

if you have to go the form 8453 route, that form asks you to attach Form 8949 or "statement with the same information" so it depends what's on your 1099B if that has the information that would be on Form 8949 but you are unable to send it electronically.

[gmans3682]

When you submit Form 8453/8949 do you still have to provide copies of all the futures statements if you are not inputing the individual trades electronically....just the totals from the 1099-B.  The futures account does not provide a total statement for year end.

[baldietax]

I would think you would need to send whatever document you have that has the same details as would be on Form 8949 i.e. description, acquisition date, sale date, proceeds, cost basis, adjustments, gain/loss

[gmans3682]

The 1099-B only shows one summary total profit and loss with no individual trades dates, etc.

[baldietax]

as I said getting out of my depth, but are you sure this is supposed to be reported on Schedule D, and rather reported as Section 1256 contracts (with mark to market, split 40% short term 60% long term) on Form 6781.

[DavidD66]

If you are reporting futures transactions they do not go on Form 8949 and Schedule D.  You don't enter them like you would stock and mutual fund transactions.  They are subject to different rules and reported in a different section.  To enter your Section 1256 Options in TurboTax Online, From the Tax Home:

• Click on Income
• Scroll down to "Less Common Investments and Savings"
• Next to "Contracts and Straddles" select "Start"
• Answer "Yes" to "Any Straddles or Section 1256 Contracts?"
• On the next screen, it is highly unlikely that you need to make any elections, so just click "Continue"
• On the screen with "Contracts and Straddles", more than likely you only need to select Section 1256 contracts...  You may want to read the IRS instructions for Form 6781, Gains and Losses from Section 1256 Contracts and Straddles
• Select "I'll report the totals from each broker or account.
• Enter the information to report your your profits and losses from your Section 1256 Options transactions.