Too many stock transactions

[Questionguy101]

What can a taxpayer do if he has numerous stock transactions? The tax program is not gonna take that many transactions. And there will be thousands of pages if he has it printed on papers.

What other options do he has? Can he send in a DVD together with the tax return?

[SFBOB]

Broker EIN and Account Number

If the sales were with the same broker I would suggest you group the short and long term sales seperate. List the Sub totals and be sure the total sales match the 1099B total.
If you have ever ordered a income print out from the IRS; you will find totals reported to the IRS. The seperate sales are not reported. Have a good one. Bob

[jeff501]

In that situation, I've always grouped the ST and LT transactions and used "various" for purchase dates and 12/31/10 for sales date. Also list source as (brokerage name) et al. Never had a problem yet.

[AZ-Tax]

Gainskeeper & form 8453

Under your 1099B brokerage statement, the columns should list: securities description, gross proceeds, cost or cost basis and net gain or loss.

Then the statement should have all the transactions separated displaying long term (held for 1 yr and over) and short term (under a yr).

If not, enourage you client to get a "gainskeeper" report that does exactly this.

On Sch D then enter net gain or loss on all ST transactions (one line). Also on Sch D, enter net gain or loss on all LT transaction (also one line). Then open form 8453 and check the bottom box (D-1 etc). This form needs to be mailed in along with a copy of the brokerage statement or gainskeeper report that displays the itemize transactions catergorized by ST and LT and at the bottom of each catergory, the net loss or gain.