500 Transactions on 1099-B

[Hoosier]

New client brings me his 2008 statement from Morgan Stanley. The 1099-B Proceeds From Broker and Barter Exchange Transactions portion of the statement shows over 500 individual stock sales for the year. I'm not sure that my software (ATX) can handle that many individual entries. I'm not sure that individual entry is even practical as this would literally take hours. Is it necessary to enter each transaction individually or is there a method to report these sales in summary format? Does the answer change whether or not I can file electronically? Thanks for any advice.

[Gene V]

I did 360 trades last year-I use Ameritrade and was able to download and transfer my
buy and sales, plus wash sale to my software--made it really easy.

You can attach a similiar statement to Sch. D see instruction below.


From Schedule D instruction:

You must enter the details of each trans-
action on a separate line of Schedule D. If
you have more than five transactions to
report on line 1 or line 8, you can report the
additional transactions on Schedule D-1.
Instead of reporting your transactions on
Schedules D and D-1, you can report them
on an attached statement containing all the
same information as Schedules D and D-1
and in a similar format. Use as many
Schedules D-1 or attached statements as
you need. Enter on Schedule D, lines 2 and
9, the combined totals from all your Sched-
ules D-1 or the attached statements. Do not
enter “available upon request” and sum-
mary totals in lieu of reporting the details of
each transaction on Schedules D and D-1 or
attached statements.

[S T]

Isn't the Key

here similar format according to the Schedule D instructions.

None of my brokerage statements match the Schedule D, the columns for date, sales price, cost, etc, are all "jumbled up". Nothing from the brokerage statement is in the same format as the schedule D. And while I have the download capability it won't place in the right columns because the Brokerage house statement doesn't match.

I do know because I had a CP 2000 notice, that IRS, has a transcript of each and every transaction and I had to account for about 140 of them on the notice, that they could not match to on the tax return with a summary statement.

I wish we had a really really clear definition on how to report!

I vote for that the brokerage houses have to supply the taxpayer with the required information in the same "form" format that the IRS requires.

Along the lines, that all Employers and Pension Administrators, have the same format for the W-2 forms and 1099R forms.

Sandy

[scrab6170]

1099 issued for rent paid in December

My Client issued a check to his landlord on Dec. 29th. The landlord did not receive the ck until after the 1st of the year. The landlord wants the 1099 re-done. I am saying no, my client issued the check in 2008 and can take the deduction. Am I correct? I have clients who receive 1099's for amounts they do not receive. We list the 1099 and then deduct out the money they did not receive that year. I have read through a bunch of the 1099 questions but did not see this particular questions.

[Black Bart]

Cp-2000

...I do know because I had a CP 2000 notice, that IRS, has a transcript of each and every transaction and I had to account for about 140 of them on the notice, that they could not match to on the tax return with a summary statement.

Sandy -- what year was that notice for? I've sent in one-figure summaries on several occasions when I didn't have the time to punch 'em in one-by-one and have never yet seen or heard of a letter like that. Have you gotten one before? Thanks.

Along the lines, that all Employers and Pension Administrators, have the same format for the W-2 forms and 1099R forms.

Sandy

Amen to that -- I despise all those different formats. Too, I thought those half-sized dollar amounts could not possibly get smaller, but some are cut almost half again this year and require a magnifying glass to read.

[Snaggletooth]

Charge Them

New client brings me his 2008 statement from Morgan Stanley. The 1099-B Proceeds From Broker and Barter Exchange Transactions portion of the statement shows over 500 individual stock sales for the year. I'm not sure that my software (ATX) can handle that many individual entries. I'm not sure that individual entry is even practical as this would literally take hours. Is it necessary to enter each transaction individually or is there a method to report these sales in summary format? Does the answer change whether or not I can file electronically? Thanks for any advice.

I had one with nearly 200 such sales. I entered them all into the software conventionally and charged him for the time. I collected a hefty bill for my services, but made sure I didn't charge him full-up rate just for keypunching.

[geekgirldany]

I've had several with alot of transactions. One client I had to create several Schedule D worksheets to enter in. For some reason Taxwise would erase them (not completely) from the return when I closed it. When I went back in and did a copy of the worksheet they would show up. Then again go away after closed the return. Seems like anything over 4 worksheets it would not accept. I don't know. Anyways I am sending in the brokerage statement. There is an extra quantity column. Hopefully this won't throw out a CP2000 notice.

[S T]

Cp 2000

CP 2000 notice received on a 2006 return, notice received in July 2008. Believe me I had page after page on the CP 2000 notice identifying each and every transaction, that I had to place in my computer system.

Phoned, and the IRS rep said we don't have a completed detailed schedule D, if you can provide we will review. Once all placed on the Schedule D and sent back, we were good to go and all matched, so no additional assessments.

So for further note, I entered the t/p Schedule D on the 2007 tax return, all 675 transactions and charged him for it as well.

Sandy

[Uncle]

I have done 4900

I once entered (manually) 4900 stock sales. Client had inherited a half million on a house inheritance and lost it trying to be a day trader. A lot of wash sales. Yep, charged him for each and every one. Never came back!!

[JohnH]

I vote for that the brokerage houses have to supply the taxpayer with the required information in the same "form" format that the IRS requires.

Along the lines, that all Employers and Pension Administrators, have the same format for the W-2 forms and 1099R forms.

Sandy

What's with all this talk about a standardized format for brokerage statements? Wouldn't that make them easier to read and help the customers figure out what's going on with their accounts? I don't think brokerage houses want that to happen - it would be VERY BAD for business.

[Burke]

New client brings me his 2008 statement from Morgan Stanley. The 1099-B Proceeds From Broker and Barter Exchange Transactions portion of the statement shows over 500 individual stock sales for the year. I'm not sure that my software (ATX) can handle that many individual entries. I'm not sure that individual entry is even practical as this would literally take hours. Is it necessary to enter each transaction individually or is there a method to report these sales in summary format? Does the answer change whether or not I can file electronically? Thanks for any advice.

I use ATX also, but I enter one line for short-term totals and one line for long-term totals in each column (use Various for dates) and attach the brokerage statement, whether it conforms or not in the exact order. I have done this for a number of years and never had a question. If something is omitted on the return, you will get a CP 2000 that details each transaction, but if it adds up to what the IRS computer has, everything is okay.

[Hoosier]

What about form 8453?

Is this a possible solution to this problem: Report a summarized long term and short term total on schedule D and file electronically. Follow up the e-file acknowledgement by submitting by mail form 8453 with a copy of the Morgan Stanley statement that shows each sale, cost basis and gain/loss for each transaction. On form 8453 check the box second from the bottom of the page that reads - "Schedule D-1, Continuation Sheet for Schedule D (Form 1040) (or a statement with the same information), if you elect not to
include your transactions on the electronic short-term capital gain (loss) or long-term capital gain (loss) records". Is this a practical solution to reporting all these transactions?

[Lion]

Love my software!

At Block I once entered 4400 with wash sales on almost all of them. (Manager was watching over my shoulder.) Other times I sent in the broker statement. But, now I use ProSystem fx and it is wonderful. Just transmitted a return I completed yesterday. Individual return where I also prepare the LLC/partnership. When I open the individual, it says it sees two K-1s, would I like to import them? Then I had the broker email me the statement in Excel format. ProSystem fx has a wizard where I tell it which column to put where, and boom all 140 double-sided pages are within the Schedule D. I'll feel a lot better when the status goes from transmitted to accepted, but I love my software. The time savings and accuracy this late in the season when I'm sleep-deprived is priceless. Now I have a family of five with kiddie tax, just point and click.

[kaimana]

My program has a worksheet for multiple transactions. taxea

[kaimana]

My program has a worksheet for multiple transactions. kaimana