Stock Sales

[thetaxman2200]

My question is this - if I have a 1099 -B which has sales of at least 20 or more different type of funds and stock - all of the sales are short term. Can I list as one line item or do I have to list each individual stock which has multiple sales dates?

Thanks

Brian

[Burke]

This has been answered numerous times on this board this year. See prior posts about attaching to 8453.

[JSLATER]

My question is this - if I have a 1099 -B which has sales of at least 20 or more different type of funds and stock - all of the sales are short term. Can I list as one line item or do I have to list each individual stock which has multiple sales dates?

Thanks

Brian

IRS Instructions:Form 8949

Enter all sales and exchanges of capital assets, including stocks, bonds, etc., and real estate (if not reported on Form 4684, 4797, 6252, 6781, or 8824). Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. Report short-term gains or losses on line 1. Report long-term gains and losses on line 3.

Enter the details of each transaction on a separate line of Form 8949 (unless the Exception to reporting each transaction on a separate line described later applies to you). Use as many Forms 8949 as you need.

Use a separate Form 8949, Part I, for each of the following types of transactions.

Short-term transactions reported to you on Form 1099-B (or substitute statement) with an amount shown for cost or other basis unless the statement indicates that amount was not reported to the IRS. Check box A at the top of this page of Form 8949. If your substitute statement shows cost or other basis for the transaction but indicates it was not reported to the IRS, report that transaction on page 1 of a Form 8949 with box B, not box A, checked (see 2 below).

Short-term transactions reported to you on Form 1099-B (or substitute statement) without an amount shown for cost or other basis. Check box B at the top of this page of Form 8949. If your substitute statement shows cost or other basis for the transaction but indicates it was not reported to the IRS, report that transaction on page 1 of a Form 8949 with box B, not box A, checked.

Short-term transactions for which you did not receive a Form 1099-B (or substitute statement). Check box C at the top of page 1 of this Form 8949.

[Gene V]

The Exception

Exception to reporting each transaction on
a separate line. Instead of reporting each
of your transactions on a separate line of
Form 8949, you can report them on an at-
tached statement containing all the same
information as Form 8949 and in a similar
format. Use as many attached statements as
you need. Enter the combined totals from
all your attached statements on a Form
8949 with the appropriate box checked. For
example, report on line 3 of a Form 8949
with box A checked all long-term gains and
losses from transactions your broker re-
ported to you on a statement showing that
the basis of the property sold was reported
to the IRS. If you have statements from
more than one broker, report the totals from
each broker on a separate line.

[JG EA]

[b]...Form 8949, you can report them on an at-
tached statement containing all the same
information as Form 8949 and in a similar
format....

It is a nice provision but I end up typing them all in. This is the part that never seems to fit. "in a similar format". I can't imagine that the Edward Jones format would be acceptable for instance.

[Gene V]

It is a nice provision but I end up typing them all in. This is the part that never seems to fit. "in a similar format". I can't imagine that the Edward Jones format would be acceptable for instance.

I always type them in also, except mine, which I download in excel format, then transfer to my software, one year I had over 360 entries (I did a lot of day trading that year).

[Gary2]

It is a nice provision but I end up typing them all in. This is the part that never seems to fit. "in a similar format". I can't imagine that the Edward Jones format would be acceptable for instance.

More and more brokerages are issuing reports in the appropriate format. I can't say for Edward Jones specifically, but I have seen brokerage statements containing, on one line (or two or three adjacent lines): security, number of shares, purchase date, sale date, proceeds, and basis.

I've also seen some that don't - including large brokerages that ought to be doing better.

[S T]

099B Forms

Most all that I have received (small transactions and not many) indicate the "Basis Not Reported"
and I know that the Brokerage has the basis as that is where the initial transaction originated at.
So I am still entering line by line Can't hardly wait for the "large" multiple Transaction reports that are probably on "corrected Statements" to be issued in March 2012

Sandy

[FEDUKE404]

Fighting the x in the box

Most all that I have received (small transactions and not many) indicate the "Basis Not Reported" and I know that the Brokerage has the basis as that is where the initial transaction originated at. So I am still entering line by line Can't hardly wait for the "large" multiple Transaction reports that are probably on "corrected Statements" to be issued in March 2012

Sandy

Sandy -

Most of the statements I have seen so far DO have a basis (think old rules) but they do not REPORT the basis to the government except for (most) purchases made beginning in 2011.

On the surface the stock sale information from the firms looks quite similar to those of past years, i.e. cost basis/proceeds/date of purchase/date of sale and frequently (but not always) a calculated gain/loss. The major difference is to look for an indication that the cost basis was "reported" (I think it is box 6, "covered" etc ??) and act accordingly for the proper line(s) on Schedule D. How you enter the data determines which one of the A/B/C entries will show up on Schedule D.

Of course, what bugs the heck out of me (as I enter the data) is that on the Form 8949 there is no determination of actual gain/loss from each individual stock transaction......that only appears in summary form (maximum of six numbers) on Schedule D.

Perhaps the IRS will come to their senses next year??

FE

[S T]

It is a mix for now - I haven't received enough of the forms yet with any "volume" transactions - those have to be a challenge

"Basis" is on my 1099 Reports (all except for a couple" and the Code is either B or C and Non Covered with Basis Not Reported - Unknown

Some are 2011 Transactions and using Code B or C - and then there is another sheet showing the Actual Purchase

I have only had one with "A"

Fortunately, except for watching for the "coding" for the 8949/Sched D - it does not impact me/us to much

I would suspect there will be a lot of confusion on this for 2011 and mis-reporting. And also a lot been sent via the 8453 form. So much for "paper reduction"

Sandy

[DonPriebe]

You wish has been granted!

... Perhaps the IRS will come to their senses next year?? ...

They have already changed the 2012 1099-B to add an explicit box for "Basis reported to IRS" http://www.irs.gov/pub/irs-pdf/f1099b.pdf

[Gary2]

They have already changed the 2012 1099-B to add an explicit box for "Basis reported to IRS" http://www.irs.gov/pub/irs-pdf/f1099b.pdf

For practical purposes, the current box 6 "non-covered security" box is usually an indication of whether or not the basis is reported to the IRS (whether or not it's reported to the taxpayer). Otherwise, read the footnote descriptions. Every brokerage is different, but once you know which flag or footnote letter applies to the paperwork you're looking at that instant, it's easy enough to breeze through them.

I've found that the hardest case is when the client brings their statement on their iPad instead of paper; I can't check off the items as I work.