Schedule D Error: Line 16 is blank....more than 4000 noncovered sales.... for crypto transactions

[TLHoff]

I am getting an error on the desktop program that says:

"Line 16 does not include asset sales because you have exceeded the maximum number of noncovered sales.  Since you have more than 4000 noncovered sales, you will need to remove some of the noncovered sales.  They can be replaced by entering a summary and attaching a statement to your return with the individual sale detail."

I have no idea how to fix this, please help.

[JamesG1]

Investment sales are divided into covered and non-covered securities using IRS form 8949. Transactions on non-covered securities not reported on Form 1099-B are reported on Form 8949 where Code C (box C checked) is used for short-term holdings, and Code F (box F checked) for long-term holdings.

So the software is asking you to report either code C or code F entries in a summary fashion rather than reporting each individual line entry.

In TurboTax Desktop Premier version, you may elect to report summary information.  If your brokerage statements include a summary of your transactions, grouped by sales category, for example, Box C short-term uncovered or Box F long-term uncovered, you will enter the summary info instead of each individual transaction.  Follow these steps:

• Go to Federal Taxes / Wages & Income / I'll choose what I work on / Investment Income / Stocks, Mutual Funds, Bonds, Other.
• Click Start / Update to the right.
• Click on Add More Sales.
• At the screen OK, let's start with one investment type, select Stocks, bonds, mutual funds.  Click Continue.
• At the screen Let us enter your investment sale info, select Skip import.
• At the screen Which bank or brokerage is on your 1099-B?, enter the banking information.
• At the screen Tell us about the sales on your investments 1099-B, answer the questions.
• Do these sales include any employee stock, answer No.
• Do you have more than three sales on your 1099-B, answer Yes.
• Do these sales include any other types of investments, answer No.
• Did you buy every investment listed on your 1099-B, answer Yes.  Click Continue.
• At the screen Now, choose how to enter your sales, select Sales section totals.  Click Continue.
• At the screen Look for your sales on your 1099-B, click Continue.
• At the screen Now, enter one sales total on this investment 1099-B, enter the information.  Click Continue.
• You may enter one total for code C and one total for code F.

A copy of the 1099-B that you entered will be mailed to the IRS.  See the instructions on the screen How do you plan on submitting your 1099-B to the IRS?

You may have received a 1099-B with these uncovered entries from a provider or the totals may already be provided in the software.  Click FORMS in the upper right hand corner of the screen.  In this case, see IRS form 8949 under Forms in my return and print out the form.

The detail will have to be removed from the tax return when you enter the sales totals for the same entries.