New instruction for Schedule D

[Gene V]

What's New

Form 8949. For 2013, you can combine certain transactions and report the totals on line 1a or 8a of Schedule D without completing Form 8949. For additional information, see the instructions for Lines 1a and 8a.


If you choose to report these transactions on lines 1a and 8a, do not report them on Form 8949. You do not need attach a statement to explain the entries on lines 1a and 8a and, if you efile your return, you do not need to file Form 8453.

Read the instruction for more information

http://www.irs.gov/pub/irs-pdf/i1040sd.pdf

[ATSMAN]

Beautiful. Helps when the 1099-B is done right!

[JON]

But

Is it not true the only ones that you can combine are the ones that have both the gross proceeds and the COST on the 1099B. Which i think means if you acquired the stock through the brokerage firm in the last two years(12 and 11) and sold it in 2013 using the same brogerage firm you may combine the items on the appropriate line, otherwise list or use the 8453. I will continue to do the latter for all and send in the 8453 with attachments(to the wharehouse in Texas)... Someday all information will be sent to the IRS by the brokerage firm on the 1099Bs - and they will not need us to report??!!!

[taxxcpa]

I've already entered all of my stock transactions on an excel worksheet which I can import into Form 8949, since, last year, my broker did not show the cost of some stocks I'd transferred from my IRA to my margin account. I have only transferred cash from my IRA for this year's RMD so I won't have any problem next year. If I buy more stocks in my margin account, the broker will report those costs correctly

[FEDUKE404]

Caveat

It should be noted that, if you use lines 1a and/or 8a of Schedule D, no adjustments to the reported data are allowable via column g.

Or, stated differently, the cost basis reported by the brokerage firm MUST be used. For stocks that may have been held a couple of years, you could be on very thin ice. . . .

While the option is a step in the proper direction, I see the option as having limited value for many stock transactions.

FE

[JON]

8453

it is still in use. Probably not for long. I think those that are importing and doing it correctly are smart. I still like the 8453 sitting at my office, client's house and some wharehouse in Texas is fasater and soon, not in my preparer time, everything will be on the broker's statement and sent to the IRS so all that the preparers will have to do said is say see your information.

[appelman]

Just asking

Is that the best li'l wharehouse in Texas?

[ruthc]

DID i DO IT RIGHT?

Broker gave 1099B with both cost and proceeds and I don't need to do any adjusting. They noted the basis was not reported to the IRS. Just want to make sure that I am entering properly on Scd D....

I had originally clicked on line 9 on Sch D "LT totals from form 8949 with box E cked". All transactions are LT. Entered all transactions under part 2 "LT for box e transactions". Instead of entering all transactions under the 8949 form, I entered each transaction under the 1099B's form. I don't think I had to do that, but I wanted each transaction to show.

Now that I am thinking about the new way allowed without entering all transactions esp w/o adjmts, I don't think I have to adjust anything because the total is showing on line 8a which it should with the new rules. I could have entered just the total, but entered each transaction for each stock sold which shows on line 8a (all long term). I don't have to do the form 8949. Even though I went about it by clicking the wrong line to enter the transactons I think I am all set because the totals do show just on line 8a. Each transaction shows on a 1099B. I am assuming the tax program put the grand totals on line 8a even though I clicked on another line to enter each transaction. Hopefully, I didn't confuse the issue.

Think I am ok? All figures are correct and on the right line on Sch D.

[taxxcpa]

Is that the best li'l wharehouse in Texas?

That little wharehouse was located in LaGrange, TX--half way between the University of Texas and Texas A&M.

It was something like a remote campus.

[JON]

Basis and Basis not reported

Broker gives you gross porceeds with a lot of categories. Those with basis sent to the IRS goes once place and those sent without basis has a couple of choices. They should not be com,bined although I do not know if that is checked yet.

[David1980]

If the broker's statement includes the basis but also says something like "basis not reported to IRS" the 1a/8a lines don't apply. On the other hand, if the broker's statement contains all the same information and in a similar format you can attach the statement to the return and then enter just one line on the 8949 for each code type. There's even an adjustment code on the 8949 for this - code M.

"For example, report on Part I with box B checked all short-term gains and losses from transactions your broker reported to you on a statement showing basis was not reported to the IRS. Enter the name of the broker followed by the words “see attached statement” in column (a). Leave columns (b) and (c) blank. Enter “M” in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h). If you have statements from more than one broker, report the totals from each broker on a separate row."

You then have to send in the broker's statement somehow. If you have a PDF you can attach it to the return and send it electronically with the return. Otherwise mail it in with 8453.

This is Exception 1 in the 8949 instructions. http://www.irs.gov/instructions/i8949/ch02.html#d0e364