MOBEE Posted April 4, 2009 Report Share Posted April 4, 2009 I would like input on the entering of stock sales on schedule D. Must we enter each stock sale on the schedule D (sometimes 20 or more) or can we use the summary as provided by the brokerage statement as long as we are sure to separate the short term and long term sales on the schedule D... Thanks Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 4, 2009 Report Share Posted April 4, 2009 I am curious to see what others will say here. But, if it were me, I would enter each transaction separately if there was only twenty or just a little more. A few years back, the IRS stirred up a big stink when they were requiring that each transaction to be entered and then offered up the form to put on additional transactions. I don't have that many clients with large amounts of transactions so I am not real clear on the requirement. Terry D. Quote Link to comment Share on other sites More sharing options...
HV Ken Posted April 4, 2009 Report Share Posted April 4, 2009 I would like input on the entering of stock sales on schedule D. Must we enter each stock sale on the schedule D (sometimes 20 or more) or can we use the summary as provided by the brokerage statement as long as we are sure to separate the short term and long term sales on the schedule D... Thanks You are allowed to put the consolidated information on the Schedule D and then send a copy of the summary attached to a 8453. Quote Link to comment Share on other sites More sharing options...
JRS Posted April 4, 2009 Report Share Posted April 4, 2009 In my area, the IRS insists we follow the instructions for the schedule. I was "advised" the broker summary does not work!! From the instructions for Schedule D: You must enter the details of each transaction on a separate line of Schedule D. If you have more than five transactions to report on line 1 or line 8, you can report the additional transactions on Schedule D-1. Instead of reporting your transactions on Schedules D and D-1, you can report them on an attached statement containing all the same information as Schedules D and D-1 and in a similar format. Use as many Schedules D-1 or attached statements as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1 or the attached statements. Do not enter “available upon request” and summary totals in lieu of reporting the details of each transaction on Schedules D and D-1 or attached statements. Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 4, 2009 Report Share Posted April 4, 2009 My understanding is that the broker summary is acceptable IF it follows the same format as the schedule D. That's a key distinction, but it's right there in the instructions. This year, for the first time, I've seen a couple of broker summaries which do meet this test. Most don't, which I think is by design since they don't really want the client to know very much about their performance - an informed, knowledgeable client isn't particularly good for business. I don't see how IRS can reject a broker summary if it meets their own requirements. Has anyone on this forum ever filed a return attaching a compliant broker summary and had the return rejected? Quote Link to comment Share on other sites More sharing options...
Bob Hoffman Posted April 4, 2009 Report Share Posted April 4, 2009 My understanding is that the broker summary is acceptable IF it follows the same format as the schedule D. That's a key distinction, but it's right there in the instructions. This year, for the first time, I've seen a couple of broker summaries which do meet this test. Most don't, which I think is by design since they don't really want the client to know very much about their performance - an informed, knowledgeable client isn't particularly good for business. I don't see how IRS can reject a broker summary if it meets their own requirements. Has anyone on this forum ever filed a return using a compliant broker summary and had the return rejected? Not here. The 100-200 transaction Merrill Lynch detailed reports have worked for 3 years now. Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 4, 2009 Report Share Posted April 4, 2009 Not here. The 100-200 transaction Merrill Lynch detailed reports have worked for 3 years now. I agree with Bob and John, if report in the correct format, attach it. I have a guy with Edward Jones report that I attach and have not had a problem in 3 years as well. (Thank you Edward!) This morning, working on a guy with Wachovia, whose format is NOT like IRS accepts, PLUS, they list all (A LOT!) the transactions by fund, but DON'T TOTAL BY FUND. I am so fed up. Is it too much to ask that you hit the SUM button?!? Their fees for the year were $2160. For $2160, I could hit the SUM button. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 4, 2009 Report Share Posted April 4, 2009 20 IS very little and you should enter it. takes about 10 minutes and you bill for it at least $100 extra i use see attached when it gets around 100. i have even taken the broker stmt and whited out N/A when they do not have a cost for one of the stocks and add the basis and change the schedule totals. never had a problem. i posted a couple years back trying to get a handle on what to charge. the client had 3000 or so trades [over 100 pages on 1099-b Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 4, 2009 Report Share Posted April 4, 2009 20 IS very little and you should enter it. takes about 10 minutes and you bill for it at least $100 extra You are one heck of a typist. And it takes 2.1 nanoseconds, (less than that with the new-fangled automatic staplers), to attach the broker's statement that meets IRS requirements, and not bill your client for unnecessary work. Quote Link to comment Share on other sites More sharing options...
MN dhawk Posted April 4, 2009 Report Share Posted April 4, 2009 With only 20 I would key them in. It would take 5 minutes. The atx sch d detail sheet lets you key straight down the columns. This can be fast. The IRS does get the trades one at a time. In the future we will be able to cut and paste from downloaded broker statements. I believe Drake already allows importing of spreadsheets into schedule d. Quote Link to comment Share on other sites More sharing options...
Bart Posted April 4, 2009 Report Share Posted April 4, 2009 In the future we will be able to cut and paste from downloaded broker statements. We can already copy and paste. See the thread started by ljwalters on 3/18/09 called "Sch D stock sale list". Quote Link to comment Share on other sites More sharing options...
MOBEE Posted April 5, 2009 Author Report Share Posted April 5, 2009 My only issure with your responses is that I wanted to completely e-file the return and not have to mail in anything... so I seems that each transaction might need to be entered... thaks Quote Link to comment Share on other sites More sharing options...
taxperson Posted April 5, 2009 Report Share Posted April 5, 2009 My only issure with your responses is that I wanted to completely e-file the return and not have to mail in anything... so I seems that each transaction might need to be entered... thaks The way to make the e-file accept is to have just one entry each for short term and long term on the Detail and use the totals from the broker's statement/ Date purchased can be various but date sold has to be a real date. I usually pick one out of the air. Then I enter "See Form 8453 Attachment" as the description and check the box on the 8453. No problems. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted April 5, 2009 Report Share Posted April 5, 2009 You are one heck of a typist. And it takes 2.1 nanoseconds, (less than that with the new-fangled automatic staplers), to attach the broker's statement that meets IRS requirements, and not bill your client for unnecessary work. Always enter them all and bill accordingly. Not my problem if they are trading in large numbers. Some clients are also able to get their information into an Excel spreadsheet and then I can reformat it and copy right into ATX. Still I charge a little extra for the additional transactions, just not as much as line by line entry. And - Sorry I agree 5 to 10 min for 20 trans. Unprotect the form and you can enter some items faster by keying down the form rather than across and you see a dramatic speed increase in entry. And attach the statement. hmmm. 2.1 nanoseconds to staple/attach form, time to go to the copy machine or scanner, prepare an envelope and 8453 and mail to irs. How much time does that take. Hard to believe less than 10 minutes! Enter the transactions and Bill the client. Quote Link to comment Share on other sites More sharing options...
HV Ken Posted April 5, 2009 Report Share Posted April 5, 2009 Always enter them all and bill accordingly. Not my problem if they are trading in large numbers. I have one that is 41 pages. You couldn't pay me enough to type all those in. I am a big fan of the consolidated entry and 8453 approach. Quote Link to comment Share on other sites More sharing options...
MOBEE Posted April 6, 2009 Author Report Share Posted April 6, 2009 I have one that is 41 pages. You couldn't pay me enough to type all those in. I am a big fan of the consolidated entry and 8453 approach. So you are saying that you mail in the 8453 with the detail of the sales of stock... Right?? Quote Link to comment Share on other sites More sharing options...
taxperson Posted April 6, 2009 Report Share Posted April 6, 2009 So you are saying that you mail in the 8453 with the detail of the sales of stock... Right?? Yes. Quote Link to comment Share on other sites More sharing options...
taxtrio Posted April 6, 2009 Report Share Posted April 6, 2009 Recently got an email from a client using Curian Clearing Broker.... managed account. 1099B printed out at 96 pages! Total gross proceeds not really that much... just a couple thousand transactions. Most are partial shares (her share of the pool of stock-- ) can't input into ATX the the small change shown on each transaction. The worksheets were not compatible with IRS format. Had client go back on the website and client was able to send me an excel file .... from that I was able to manipulate the columns into the IRS format and copy and attach to the 8453.... Thank Goodness for the 8453.... Taxtrio Quote Link to comment Share on other sites More sharing options...
joelgilb Posted April 6, 2009 Report Share Posted April 6, 2009 Recently got an email from a client using Curian Clearing Broker.... managed account. 1099B printed out at 96 pages! Total gross proceeds not really that much... just a couple thousand transactions. Most are partial shares (her share of the pool of stock-- ) can't input into ATX the the small change shown on each transaction. The worksheets were not compatible with IRS format. Had client go back on the website and client was able to send me an excel file .... from that I was able to manipulate the columns into the IRS format and copy and attach to the 8453.... Thank Goodness for the 8453.... Taxtrio If you are able to get it into excel, you can cut and paste it into ATX with almost no effort Quote Link to comment Share on other sites More sharing options...
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