Schedule D transactions

[mths]

Can sch D transactions be entered as one instead of putting all trade transactions? Example, beginning balance, ending balance, profit or loss. Various trading dates. TP is a day trader with MANY transactions. Previous years returns show that he has done this and claims that he has never been questioned about it.

[sea-tax]

I think you can attach a gain loss report to the sch d. I however do not I usually enter all the transactions in line by line but will group similar stocks and mutual fund shares. For example if I had 3 sales of msft all long term then I will enter them group on one line of sch d. Never had a problem .

[mths]

Sch D Transactions

That I understand if you have two of three of the same, either long or short term. The TP gets a year end statement and uses one line on Sch D, short term, Bal at begining is the bought and bal at the end of the year is the sold. Shows profit or loss. I have always listed all transactions regardless of how many..

[jainen]

instructions for Schedule D

>>Previous years returns show that he has done this and claims that he has never been questioned about it<<

The instructions for Schedule D have always required a complete listing, either on the form itself or by attaching a spreadsheet or broker statement with the same information in the same format. IRS recently emphasized this requirement, an indication that they are probably going to start enforcing it.

They want the listing so they can identify hidden gains, wash sales, and other irregularities. Generally a complete listing is easy for a day trader to print out because it is all done on his computer.

[BOB W]

Irs.....

.... has started to take a firmer stance on stock trade reporting. You should get a copy of schedule D instruction and read their stance.

I use Ultra Tax and they have an import function that allows any columner program, like excel, to be imported into schedule D. Fidelity has an export function that can go into Excel, along with some others. Check with your clients to see if they can access online their account and if there is an export function.

Many statements issued by brokers have missing cost basis that make the statement almost worthless. The import function allows all details to be entered. Then you can adjust any basis issues within the tax program on Schedule D once it is imported. Check with your tax program for this import function.

I also tell my clients that if they list all the trades in excel and email it to me I will import it and there will be no charge for that portion of Schedule D.

[S T]

Schedule D

While the Schedule D transactions if there are many, is cumbersome and time consuming for us to complete and prepare as Tax Preparers, I still prepare it line item, by line item.

I also charge the client for those entries, and when they ask why, I refer them back to their Stock Broker who has usually been "churning" the account for little dollars for the client. I also now have the client call the Stock Broker, and have the Stock Broker furnish me with the necessary information to complete the Schedule D rather than reading the year end forms and trying to track.

Most stock brokers have a separate report that they update for the short and long term gains or losses, rather than using the year end from the brokerage house. The total sales should match the year end report.

Extra fees as Jiggers would say!

Just something that I feel needs to be done, and I don't like a CP notice being received a few years later to justify the reporting on the Schedule D.

Sandy

[mths]

Sch D Transactions

Thank you all for your comments. It has been a great help. this is a new client and he may like what I have to tell him. It certainly is evident that I don't charge enough for this type of work and time involved.

[Jiggers]

Schedule D Detail

Aren't we supposed to be professionals? Why shortcut something? I do the Schedule D in detail. My software handles it. And it reconciles to all the 1099B's that clients receive. As commented earlier, I do charge for each entry on the Schedule D. Why not? When clients receive 1099MISC for their Schedule C or F, I attach a schedule detailing them so that the IRS can match them. My software attaches the schedules as part of their e-filing.

[Brad Imsdahl]

The Schedule D instructions have actually changed for 2006. TTB, page 1-12, “The new verbiage says: “Instead of reporting your transactions on Schedule D and D-1, you can report them on an attached statement containing all the same information as Schedule D and D-1 and in a similar format…”

The 2005 Schedule D instructions did not contain this optional reporting method.

[sea-tax]

So can someone please clarify. I group like kind stocks and mutual funds shares together and make the entry on the sch d. Is this ok?

For example if client lets say made three sales throughout the year of microsoft stock which are all longterm I would group them together and my entry would be

1/1/00 bought
1/1/06 sold
microsoft stock 500 shares
5000$ bought
10000$ sold

this would be a total of the three transactions and I would do the same for the shot term microsoft stocks sold.

Does anyone see a problem?

[outwest]

My attitude is..

I assume that if a 6th grader could understand it, the IRS would probably be okay.

Sooo...

could a 6th grader match your list with the what the IRS gets from the brokers easily?

Doug

[abby]

Various

Most software I've seen has some kind of code or method to enter 'Various' in the date field if there are multiple sales or purchases in the line. Using this does mean that you have to code Long Term or Short Term manually, but it does give a clearer indication that multiple transactions are being reported.

Otherwise I don't see a problem if the detail is attached as instructed.

[fliszt]

I also

list each transaction from 1099B to the Sched D. Some clients have 50+ transactions, but I type each one on the Sched D. I do not charge clients for the first 4 items. Then for items 5 - 8 I add $6.50each. If 9 or more I charge by time starting with number 9.
Also, I use to call brokers when their 1099Bs did not have cost info. Got into a little bit of trouble doing that a few years ago so now I have the client call and get the info back to me. And now I think it works better to exchange information between client and me versus broker and me where as the client could say that isn't right.
Larry

[DonPriebe]

Well ...

Most software I've seen has some kind of code or method to enter 'Various' in the date field if there are multiple sales or purchases in the line.

I think you're half right :-> "Various" is allowed as a purchase date, but not as a sale date.

[sea-tax]

I think you're half right :-> "Various" is allowed as a purchase date, but not as a sale date.

Well Lacerte allows a "various" in both the purchase and sale date. Not sure if that is enough authority to make it ok just something I found out today.

I guess if it is longterm or shorterm it what it is and different dates may not make a difference so long as it is on the appropriate part of the sch d long or short.