Lots of stock transactions (enter detail vs summary)

[kolee]

Hi all,

my client has lots of stocks transactions in 2016 (over 50 pages!!!, and he has full time job..). Do I need to enter every detail transactions line by line or can i input short-term and long-term summary figures? It'll take at least 2-3 hours to enter every detail stock transactions...and I just wanted to ask all of you before i even start...

Thank you all in advance...

[Roland Slugg]

50 pages? Yikes ... that's a lot!!

Your client probably qualifies to use Exception 1 and/or Exception 2 to the line-by-line reporting requirement. Those are described in the instructions for F-8949, on page 3.

[mactoolsix]

We have a few clients with 50 or more pages of individual stock transactions.
We always use "summary" entries for covered ST and LT. We then back out any wash sales and enter them on a separate line.

Then when there are over 30 or 40 non-covered, we enter a "summary" and include a pdf copy with the return.

Funny thing is that in the past 10 years I could count on one hand how many of these made a profit. Most loose thousands each year!

[Snaggletooth]

Short Answer

Enter totals only on 8949, run copy of the 50-page document and send the mess to IRS with an 8453 cover page.

I seriously doubt your client made that many transactions on his own. Probably has an account with a major brokerage company, and sometime in the past the broker asks: "We will do your investing for you and save you the trouble." Investor says "Duh, I guess so....."

[ATSMAN]

Enter totals only on 8949, run copy of the 50-page document and send the mess to IRS with an 8453 cover page.

I seriously doubt your client made that many transactions on his own. Probably has an account with a major brokerage company, and sometime in the past the broker asks: "We will do your investing for you and save you the trouble." Investor says "Duh, I guess so....."

Correct. However I was at a conference and the speaker said that the stack of papers sent with the 8453 is warehoused (not matched with the return page by page) so even if you don't send it just make sure taxpayer has it available for inspection if IRS audits.

I think IRS computers look at the summary totals for LT/ST, wash sales etc. and as long as the Gross Proceeds match it moves on.

[Rapid Robert]

the stack of papers sent with the 8453 .

For a number of years now, since MeF, it's been possible to just attach a PDF file for this common scenario with the efiled return. Having done it both ways, I'd never go back to the paper-based method. I'm sure IRS prefers PDF attachment also.

[Burke]

Correct. However I was at a conference and the speaker said that the stack of papers sent with the 8453 is warehoused (not matched with the return page by page) so even if you don't send it just make sure taxpayer has it available for inspection if IRS audits. I think IRS computers look at the summary totals for LT/ST, wash sales etc. and as long as the Gross Proceeds match it moves on.

I agree. I stopped sending them (although I have copies) a couple of years ago. Not a peep from the IRS. I don't know why in the world they would want to warehouse them anywhere.

[Lion]

CCH's Scan & Flow. Import an Excel spreadsheet. (You'd be surprised how fast a broker gets you a spreadsheet after you tell the client how much more your fee will be without it !!) Use the methods in the instructions. Attach a .pdf. Never mail. Watch out for wash sales.