Schedule D

[Christian]

Well another successful season. Thankfully ATX resolved most of their issues. A client of mine had some sixty plus stock trades which took forever to enter. I am wondering if we could not simply photocopy the brokerage statement which provides all the relevant information entering only the totals on Form 8949 for the respective boxes and attach same to the return. I also assume you would need to do do the same on Schedule D but it might transfer automatically.

This would surely save a huge amount of time to say the least. Your thoughts ?

[cred65]

Yes. At the 2nd row from top 6th item to right you will see a tab "E-file". Click on it and 2nd item down you will see "Attach PDF", click on this and there is a menu of available resources. Form 8949 is first available. All you have to do is scan broker Non-Covered transactions detail as PDF and attach. Big time saver.

[Christian]

Thanks for replying but 2nd row from the top 6th item to the right on what form ?

[kcjenkins]

on the return, any form, actually.

[Randall]

I've noticed more brokerage 1099s having Box A or D available if not in whole, in part, giving subtotals that we can just input the total or subtotal for those categories. It at least reduces the number of entries for Box B and E. We should see more of this the farther out we go since brokerages have been required to track basis and report basis for the past few years.

[JohnH]

It is well worth taking the time to study page 3 of the attached Form 8949 instructions. I kept putting off preparing my returns which had brokerage statements with multiple sale transactions until after March 15 (with many of them on extension now). Fortunately I studied the instructions before actually undertaking any of them, and I found that NONE of my clients needed detailed line-by-line entries - not even those who had wash sales. The supporting info must be attached to the return, but actual entries required are very simple. Every major brokerage firm now reports this information in a format which can be entered in summary form.

http://www.irs.gov/pub/irs-prior/i8949--2013.pdf

For covered transactions for which cost basis has been reported to IRS, you only need to enter sales price and cost basis on 1a and 8a, completely bypassing the 8949. Then you just pull the sub-totals for the other categories of transactions which have cost basis reported to the client but not to IRS, indicate "Multiple" transactions, and check the boxes to push the info to the proper Form 8949.

The only transactions requiring line-by-line entry are those for which the brokerage statement lists no cost basis at all, and capital gain/loss transactions which are not on a brokerage statement.

[Christian]

This is pretty much what I had in mind. It seems to me you could enter the brokerage summary in each box which would carry to Schedule D while attaching photocopies of the brokerage statement. Should a Service employee have any questions they will have the relevant data in front of them.

[JohnH]

You can only take one type of transaction directly to schedule D - "Covered Transactions with Basis Reported to IRS". With those transactions, you can enter Selling Price and Cost Basis on lines 1a and/or 8a. No attachment is required for those transactions and no other entry is required.

Then you have transactions with basis reported to the client, but not reported to IRS. Those must be entered on the 8949 in sub-total form only, and the brokerage statement must be attached. The line entry in the 8949 should say "(broker name)-see attached schedule". There might be two 8949's needed, depending upon whether you have long-term and short-term transactions. The 8949's then feed onto the detail lines on the Schedule D.

Then you may have sale transactions on the brokerage statement with no basis reported to the client or to IRS. These transactions must be entered line-by-line after you get basis info from the client (good luck with that one).

Then you have capital gain/loss transactions which are not on a brokerage statement at all. (special good luck with that one).