8949 - List each individual transaction?

[Hoosier]

This has probably been covered on this board in the past but I didn't find it when I searched so... For Form 8949, it appears that the IRS instructions say to list each individual transaction as opposed to summarizing. I get mixed information from other preparers - some say they list each transaction individually and some tell me they summarize by Box A, Box B, etc from the 1099-B. If IRS accepts summarized reporting why would preparers continue to list each individual transaction?

[Lion]

You have to list individual transactions that are wash sales or for which you need to adjust the basis and probably for a few other reasons. Read the instructions, especially Exception 1 and Exception 2, to help you decide what you can and cannot do for each client's Schedule D/Form 8849. You probably can import your client's data to save time, also. But, read the instructions.

[kathyc2]

If brokerage provides basis to IRS, I consolidate all per broker, broken down between short and long term. If broker is not providing basis to IRS, I'll list out unless there are a lot of these in which case I enter one line on 8849 and attach pdf of brokerage statement.

[JBP]

I use the same method as kathyc2.

[TAX4US]

I have done what kathyc2 has done. But for some reason the pdf did not get attached or IRS did not get the pdf prompting a CP-2000 and the headaches that went along. So I guess if a few transactions I'll list them. A bunch I'll roll the dice with the PDF. The taxes would have already been paid. It's just the dang paperwork.

[ATSMAN]

I use the same method as kathyc2. It is my understanding as long as the gross proceeds match the IRS figures it gets through. One time the gross proceeds did not match exactly with the gross proceeds client provided from his trading platform report and there was a CP2000. Next year we did the 8849 to match the 1099-B and no problem.

[JohnH]

If there are numerous pages of brokerage statements, you can also paper file the return with an 8948. Just explain on the 8948 that the number of pages required to support the 8949 entries were excessive. You can usually avoid listing each transaction individually by attaching the broker summary sheet, even when there are wash sales, and even if the broker has not provided basis to IRS, provided the broker has provided basis on the statement.

[Rapid Robert]

If there are numerous pages of brokerage statements, you can also paper file the return with an 8948.

That seems like a bad idea, when you can still efile and just use Form 8453 for paper attachments, just like in the old days before the IRS vastly improved the way these transactions are reported, including broker basis reporting and Form 8949.

If broker reports basis to IRS and there are no adjustments, the totals can be reported directly on Schedule D with no supporting detail provided. I use this quite often. If there are adjustments, (typically wash sales), or non-covered sales (broker basis not reported to IRS), then either report each transaction on 8949, or be sure to use adjustment code M and attach a PDF (or if your software doesn't support that, use Form 8453 to mail in the supporting detail). I confess, if the total wash sale adjustments are less than ten or twenty bucks and basis is reported, I just ignore the adjustment and report directly on Schedule D.

[Anarchrist]

I summarize by category to match the 1099. Never break out wash sales separately. Never attach pdf. Never attach brokerage stmt or other breakdown w/ paper filed returns. Never heard back on any of them.

[spanel]

I summarize by category to match the 1099. Never break out wash sales separately. Never attach pdf. Never attach brokerage stmt or other breakdown w/ paper filed returns. Never heard back on any of them.

Same here.

Chris

[Burke]

I summarize by category to match the 1099. Never break out wash sales separately. Never attach pdf. Never attach brokerage stmt or other breakdown w/ paper filed returns. Never heard back on any of them.

Also true for me. One line for each category, gross proceeds less cost basis including wash sales adjustments, if any. No pdf, brokerage statement, or paper-file. Never had an issue.

[JohnH]

I stand corrected. I have attached brokerage statements with wash sales many times, and didn't know until today that I should not be doing that. Most of them had small adjustments, which is probably the reason I've never been dinged on it. But I'm not going to make the mistake of saying "it's always worked so I'll just keep doing it that way." From now on I'll enter the individual transactions when there's a wash sale (although I might make an exception along the lines Rapid Robert described). Thanks for the correction - learning something new only makes us better.

[ttbtaxes]

I separately list the wash transactions, sale by sale, and then use a separate line to report the remaining covered sales. I'll either list each non-covered sale or photocopy and attach to an Form 8453 if they're too voluminous.

[TAX4US]

I saw an IRS transcript the other day where every one of those sales were listed. Go figure.

[Lion]

A wash sale gets its own line. Otherwise I'd have hundreds of pages of 8949s for my clients!