When 1099-B is not received you choose option C but you can not details of individual trade? Premier desktop version

[rjs]

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@seccam wrote:

2. Until 2019 I have declared her interest income as 'Various Indian banks' on 1099-INT - because she has accounts with more than 8 banks and total more than 30 accounts ...so I would just calculate total and convert in to USD and declare in one line ...is there any problem doing that again?   

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It's no problem at all, as long as her total interest income (Form 1040 line 2b) is not more than $1,500. In that case, the only thing that actually appears on the tax return is the total amount of interest. You don't have to enter the details.

If the total amount of interest is more than $1,500 you have to list the individual payers. The name and amount for each payer is listed on Schedule B. You can enter one total for all the accounts in one bank, but you have to list each bank separately.

[pk]

@seccam  Yes I am originally from India and am cognizant of Indian Tax system to some extent.

1. Recognizing that for  employing a tax professional , you will be acting as intermediary and therefore the tax professional  will tend to be careful and use CYA -- just natural  ( she/he is not going to risk career on one client.).   Thus , if you can do it and trust your relative  then it is alright. Note  that at the end of the day , IRS is going to hole the taxpayer responsible , no matter whom prepares the  return.   The starts the finger pointing.

2.  Generally agreeing with @rjs  on  entering the details of the interest earnings - it is always a good idea to collect by issuer name because  most foreign banks  are required to report to US treasury on all accounts  when the owner is US connected ( either SSN or they suspect  that the owner is of US origin).  Don't  have exact knowledge of the transmittal format  but I know from the treasury volunteering days  that there is sufficient info.  So I would do this aggregation nu bank irrespective of the amount.

3. I would choose the simplified method for AMT -- just don't worry about the exact wording for this year and if you are wrong  in that this is indeed the "first year" , one can always explain with actual facts  in that you had no way to confirm this in time.  However , I would still suggest  that after the fact you get a transcript to see if it shows anything  ( transcript are usually as IRS keeps it in taxpayer's account not a facsimile of the filed forms ).

Is there more I can do for you ?

Namaste ji

pk

[pk]

@seccam , I come back because I forgot to comment on your  capital asset disposition report.  If indeed there are a huge number of sales/ disposition, then  a good way would be to use a spreadsheet to record each buy, sell, acquisition cost ( including charges ) , sales price ( including any associated charges ) and have the  spread sheet also compute category -- short term , Longterm, wash etc.  Then sort these  by LT / ST /WA and then by date  --- this will give you what the IRS wants/needs i.e. ST  gains. losses and LT  gains and losses  plus disallowed losses ( WA ).  Now you can group these  ( for ST, LT and WA ) by date or type of stocks etc.  Then go to TurboTax  enter the group details.  That should work. And if IRS wants details you have the back-up spreadsheet to show how you came up with the summaries.   That is what I have done for many clients during my work as a Tax Professional and never been challenged, but I was  also prepared.  IRS is not after people, they just want their fair share  of taxes.

Hope this helps

pk

[seccam]

Thanks - for sharing a proper way to declare those trades.

I am thinking about it but but at the moment I am hesitant about it, because first of all because total income is less than std deduction, so she is not required to file return.

But since 2014, we are still filing just for records. Since last year we have thought about foreign tax credit.

Also, making a proper 8949 is preferable way but its a huge task because there are more than 5000 trades - make an excel sheet that perform the work by converting and enter them to US accepted 8949.

May be its too much to ask but can you share that excel sheet that you have made and than I am positive about doing the way you suggested. I am sending you personal message for my email.

About me filing for her - here is the link I found on taxslayer - I could not find official IRS page about it but taxslayer on this link says - you can file for someone who does not speak English 

https://www.taxslayer.com/blog/filing-a-tax-returns-for-a-family-member-or-someone-other-than-yourse...

Thanks a lot and Namaste 🙏 

[fanfare]

You do not have to enter your spreadsheet into a form 8949.

You have to put the spreadsheet into the format of Form 8949.

IRS will accept any document that has the same information as on Form 8949.

Put a heading with your Name, SSN and Tax Year.

Rearrange columns as needed to be in the manner of Form 8949.

You have to mail it to the IRS at the designated place.

OR

The simple solution to your issue is to report using aggregation on Schedule D Line 1a.

Short-term covered trades are Box A transactions and Box A transactions without adjustments do not require Form 8949.

No mailing is necessary.

If you are trading crypto and/or no 1099-B, your category is Box C or Box F.

There is no reporting exception for these Boxes.

@seccam 

[Mike9241]

any version of desktop Turbotax will support manual entry but obviously one trade at a time. 

to get to the worksheet

1) select forms mode on the view tab

2) click on the forms tab

3) in the search box (jump-to box) type Capital Asset Sales Wksht  (case does not matter but worksheet must be misspelled) 

4) highlight the worksheet with your mouse then open form

5)  enter 1 then next

6) for broker name enter anything you want it's not used then finish

you should now have the worksheet where you can manually enter each trade. 

personally, I think Turbotax should make it much easier to get to the worksheet

[fanfare]

"there are more than 5000 trades"

@Mike9241 

A) Nobody is going to enter 5000 transactions one at a time.

B) TurboTax won't accept that many transactions.