Hundreds of Stock Transactions

[DonnaA]

I have a client who has 10 brokerage accounts, some with hundreds of stock sales each year. In the past, I have summarized short and long-term amounts for each account on Schedule D and attached the gain/loss statements from the brokerage firms (40 pages last year) to the return. How can this return be e-filed? There is an error message when creating the file if the Date Sold is "Various" or blank. I guess he can "opt-out" when mandatory e-filing is instituted, but I would like to e-file his returns, if possible.

[Lion EA]

Can the brokers provide you with spreadsheets that you can import or copy/paste?

[Lloyd Hudson]

Have not had the occasion yet this year, but Last year I lumped short term transactions and long term transactions with dates " purchase 01/01/08, sold 12/31/08" put in the brokers numbers and attached spreadsheet to 8453 which got mailed to Austin. E-file went fine.

[jainen]

>>transactions with dates " purchase 01/01/08, sold 12/31/08"<<

Why not just use lines 2 and 9 in the normal way, so as not to draw attention with entries that don't match the 1099-B?

[Lloyd Hudson]

>>transactions with dates " purchase 01/01/08, sold 12/31/08"<<

Why not just use lines 2 and 9 in the normal way, so as not to draw attention with entries that don't match the 1099-B?

I used all inclusive dates to allow for e-filing and not entering the "hundreds" of individual transactions. Seemed to have worked so far. No inquiry from Service.

[jainen]

>>Seemed to have worked so far<<

I'm always uncomfortable with this sort of reasoning. Whatever their attitude in the past, it seems obvious to me that the IRS has upgraded their standards for Schedule D. A couple of years ago they specifically warned practitioners to use the D-1 (or equivalent) correctly, and now they are requiring more information on the 1099s. This comes while Congress itself has been highlighting capital gains as a major concern for tax reform.

So I ask again, "Why not just use lines 2 and 9 in the normal way, so as not to draw attention with entries that don't match the 1099-B?"

[PaulH]

So I ask again, "Why not just use lines 2 and 9 in the normal way, so as not to draw attention with entries that don't match the 1099-B?"

Is there a way in ATX to get the schedule D-1 Totals in lines 2 and 9 (without overrides) that I am missing? Or do we have to enter a summary total in lines 1 and 8?

Thanks,

Paul

[jklcpa]

>>Seemed to have worked so far<<

I'm always uncomfortable with this sort of reasoning. Whatever their attitude in the past, it seems obvious to me that the IRS has upgraded their standards for Schedule D. A couple of years ago they specifically warned practitioners to use the D-1 (or equivalent) correctly, and now they are requiring more information on the 1099s. This comes while Congress itself has been highlighting capital gains as a major concern for tax reform.

So I ask again, "Why not just use lines 2 and 9 in the normal way, so as not to draw attention with entries that don't match the 1099-B?"

The "normal" way to use lines 2 and 9 of Sch D would be for entries flowing from Sch D-1. Jainen, are you suggesting overrides on these lines? Also, the OP asked about e-filing this return. Is the IRS nowing accepting returns by e-file that include the D-1?

The returns that I have like this, I paper file with the broker summaries as attachments.

[jainen]

>> Is the IRS nowing accepting returns by e-file that include the D-1?<<

IRS instructions since at least last year are to attach the D-1 (or equivalent) to Form 8453. I presume that any professional grade software would have to conform to this requirement in order to get IRS approval.

[PaulH]

>> Is the IRS nowing accepting returns by e-file that include the D-1?<<

IRS instructions since at least last year are to attach the D-1 (or equivalent) to Form 8453. I presume that any professional grade software would have to conform to this requirement in order to get IRS approval.

I have a client-prepared paper D-1 that I want to attach to Form 8453 and mail (but efile the return). I don't see how in ATX to get the D-1 totals into lines 2 and 9, where they belong, without overriding the software. Unless someone has a better idea, I will just enter the short term and long term summary totals (with a notation to see the D-1), and they will flow to lines 1 and 8, instead of 2 and 9. So my question is, is there a better way?

Thanks,

Paul

[Margaret CPA in OH]

I haven't tried it but perhaps you could input/override the totals on a D-1 that would flow through to the D then mail in the D-1. I know it is still an override but, but...

[jainen]

>>someone has a better idea<<

I have a better idea. Follow the IRS instructions. Use the software the way it was intended. What's wrong with an override? I use Lacerte, and it has exactly the same procedure as ATX. Manually enter the numbers for lines 2 and 9. That is LESS work than ginning up lines 1 and 8 with a whole description of fictitious entries.

[PaulH]

>>someone has a better idea<<

I have a better idea. Follow the IRS instructions. Use the software the way it was intended. What's wrong with an override? I use Lacerte, and it has exactly the same procedure as ATX. Manually enter the numbers for lines 2 and 9. That is LESS work than ginning up lines 1 and 8 with a whole description of fictitious entries.

Thanks. That is a better idea. I hate to override efiled returns, because I'm not always sure that something in the efile is not being pulled from an earlier source (like the D-1, which is why Margaret's suggestion has some appeal). Seems to be working though - I overrode on Sched D and created the efile with no errors.

Paul