tst Posted March 9, 2014 Report Share Posted March 9, 2014 a while back I read that the IRS does not want tax pros lumping short term sales and long terms all together in one line. they want the detail. However I can't find the authority now that supports this. Any guidance? Still OK to lump transactions together as long as you use the 8453 and send in brokerage stmt with detail? thanks for your thoughts. I Quote Link to comment Share on other sites More sharing options...
SFA Posted March 9, 2014 Report Share Posted March 9, 2014 Sometimes we enter a "summary" total for each category shown on the 1099-B statement if there are over 10 transactions. Then send in the 8453 with a copy of the 1099-B report from the brokerage house. For the program to calculate correctly, we need to differentiate ST from LT. This year however, we are permitted to enter the summary totals directly onto Schedule D in the highlighted "blue" fields for 1099-B transactions reported to the IRS that report cost basis to the IRS. When doing this, the instructions say that we do not need to send F8453 to the IRS for that group. However, if you summarize the transactions that cost basis is not reported to the IRS, then you will need to enter your summary separately as ST and LT, then send the detail attached to F8453. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted March 9, 2014 Report Share Posted March 9, 2014 I lump by category. I use TaxAct....and when I enter the transaction separately....the program lumps them. Quote Link to comment Share on other sites More sharing options...
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