Reporting stock transactions

[NotEasy]

If the statement contains the data required by the 8949, then yes, send it with an 8453. However, if it doesn't - and it won't in many cases - you can't.

Ok, so the taxpayer needs to send Form 8453 with the brokerage company's statements to the IRS. Will do.

Is the Form 8879 still required?

[ttbtaxes]

I didn't say most, just many - specifically those where it doesn't have the basis, or much less often, where the basis is wrong. That doesn't sound like the situation in this case, just many other cases. I'm sorry if I gave the wrong impression.

Nevertheless, in this case, every line on the 1099B should be checked for any exceptions.

Thanks Gary, I just wanted to clarify. We're both on the same wavelength then.

[Gary2]

Why do you say that the stock gains and losses provided by the broker won't, in most cases, contain the data require by the 8949?

I didn't say most, just many - specifically those where it doesn't have the basis, or much less often, where the basis is wrong. That doesn't sound like the situation in this case, just many other cases. I'm sorry if I gave the wrong impression.

Nevertheless, in this case, every line on the 1099B should be checked for any exceptions.

[ttbtaxes]

If the statement contains the data required by the 8949, then yes, send it with an 8453. However, if it doesn't - and it won't in many cases - you can't.

Why do you say that the stock gains and losses provided by the broker won't, in most cases, contain the data require by the 8949?

[RLymanC]

1099b

I would concider entering the bottom line on all short and long term trades....enter the lump sums...package up all 1099-B's and mail with the tax return.

[Gary2]

This year, all the cost basis and the realized gains are reported on the 1099B and sent to the IRS by the financial institution, unless due to special situation that the financial institution does not have the cost basis information.

Suppose a taxpayer made thousands of trades in 2011 and the 1099B has all the cost basis information already, do we still have to enter all the transactions trade by trade on the Form 8949? Can we just enter the grand total from the 1099B? I am thinking the IRS already has the trade by trade information from the 1099B already.

If the statement contains the data required by the 8949, then yes, send it with an 8453. However, if it doesn't - and it won't in many cases - you can't.

[NotEasy]

This year, all the cost basis and the realized gains are reported on the 1099B and sent to the IRS by the financial institution, unless due to special situation that the financial institution does not have the cost basis information.

Suppose a taxpayer made thousands of trades in 2011 and the 1099B has all the cost basis information already, do we still have to enter all the transactions trade by trade on the Form 8949? Can we just enter the grand total from the 1099B? I am thinking the IRS already has the trade by trade information from the 1099B already.