Drake Users - Sch D sales date input

[Zee]

The taxpayer is not required to file a Form 8949, but would like to include 1099-B detail as a PDF with his e-filed return. When entering the purchase date on the schedule D for the summary totals Drake SW allows the use of "Various", but a date is required for the sale date. There are numerous transactions. According to Drake support a date must be entered. So, it seems there is no other option than entering a plug date. I've used 1/31/14. Is there another way?

Thanks in advance for your help.

[Roland Slugg]

There are several ways to do what you wish:

1. All the sales of "covered" securities can be reported on just one or two lines on Schedule D ... one for ST and one for LT ... reporting only the total proceeds and the total basis on each of those lines and bypassing F-8949 for all those sales. Sales of "non-covered" securities would still need to be entered on F-8949.

2. Paper file and attach a separate schedule to the return that follows the same column order as F-8949, reporting only the totals for each category (ABCDEF) on F-8949. A copy of the broker's detail sales report should suffice.

3. It may also be possible to e-file such a return by submitting the above copies an attachments to that special form for e-filed returns ... not sure.

All the above can be found in the IRS instructions for Schedule D and F-8949.

[Zee]

non-covered securities for 8949?

There are several ways to do what you wish:

1. All the sales of "covered" securities can be reported on just one or two lines on Schedule D ... one for ST and one for LT ... reporting only the total proceeds and the total basis on each of those lines and bypassing F-8949 for all those sales. Sales of "non-covered" securities would still need to be entered on F-8949.

2. Paper file and attach a separate schedule to the return that follows the same column order as F-8949, reporting only the totals for each category (ABCDEF) on F-8949. A copy of the broker's detail sales report should suffice.

3. It may also be possible to e-file such a return by submitting the above copies an attachments to that special form for e-filed returns ... not sure.

All the above can be found in the IRS instructions for Schedule D and F-8949.

Roland - Thanks for your prompt reply. Each transaction on the 1099 includes the cost basis reported to the IRS and there were no non-deductible wash sales or adjustments to basis, gain or loss, etc. Please explain what is included in the "non-convered" securities you indicate still require entry on the F-8949?

[David1980]

For the sale date if you did have non-covered (basis not reported to the IRS) sales, the IRS has the instructions for reporting on an attached statement in the 8949 instructions. It's Exception 2.

http://www.irs.gov/instructions/i8949/ch02.html#d0e431

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.

Columns b and c (date acquired, date sold) should both be left blank. If Drake software doesn't have a way for you to leave them blank you could complain and point them at the 8949 form instructions.

Personally, I'd probably just put dates in and forget about it. Various for purchase, 12/31/14 for sale. You can't use various for the sale date - it's not valid in the efile schema for the date sold. Blank is though.

[Zee]

Thanks again for the quick replies. So, it appears "non-covered" are those items not including the basis on the 1099B. I believe both exceptions are satisfied with the TP, so it's probably not necessary to attach the 1099B's. I attached them anyway since it was easy enough to do. It seems Drake requires Gruntworx be used to input the data easily. I'm using Drake only for a couple of returns for family members and it was disappointing to learn less costly software such as Turbotax will import without added cost.

[Burke]

I have always just "plugged" in 12/31/XX as the sale date for various sales. (Or picked the last actual sale date off the 1099B). Never been an issue.

[geekgirldany]

That is what I do also never a problem.