Question about Schedule D line 1a and 8a

[weaverdoan]

Hi everyone,

I have a question about Schedule D line 1a and 8a. I understand I can report on line 1a (short-term) or line 8a (long-term) the aggregate totals from “Covered” transactions on form 1099-B that show basis was reported to the IRS and the basis doesn't show any adjustments in box 1f or 1g.

The question I have is if I have more than one form 1099-B, can I aggregate the total from all forms 1099-B?

Thanks so much for your help.

[KenO]

I have many clients with multiple brokerage accounts and frequently report the aggregate totals of covered transactions on Sch D as long as there are no adjustments. 

[Abby Normal]

I almost never use those lines because I like to see the totals on the 8949 Details tab. In the case of multiple brokerages, I would enter totals by brokerage by code. I would not add them together because it's easier to look at later and double check, if they're entered separately.

But from a tax standpoint, you could add them up or do an Itemized List on Sch D, but at that point, you might as well enter them on 8949.

[weaverdoan]

Hi Abby Normal, 

Thank you for your response. I have a follow up question.

"I almost never use those lines because I like to see the totals on the 8949 Details tab. In the case of multiple brokerages, I would enter totals by brokerage by code"

If you enter total by brokerage on 8949, do you require to attached forms 1099-B to the return?

My understand is for the Covered transactions that qualify for direct reporting on Schedule D do not require to attach forms 1099-B

Thanks again for all you help

[Lee B]

Like Abby, I use the 8949 and group them by transaction type.

[weaverdoan]

Hi cbslee,

Do you attached forms 1099-B to the return?

Thanks,

 

[Lee B]

9 minutes ago, weaverdoan said:

Hi cbslee,

Do you attached forms 1099-B to the return?

Thanks,

 

No, I have never had to do that.

[Sara EA]

Usually there is no need to attach 1099Bs because everything is listed on the 8949s or directly on the D.  The only time I ever attach the 1099s is when there are loads of pages of noncovered transactions, wash sales, etc., that would take forever to type in individually.  Actually, lately I've just entered the totals for each type on the 8949s if there are pages and pages of transactions.   Bottom line is the same.

[jklcpa]

14 minutes ago, Sara EA said:

lately I've just entered the totals for each type on the 8949s if there are pages and pages of transactions.

This is what I do and have never attached the 1099. 

[Slippery Pencil]

19 hours ago, weaverdoan said:

Do you attached forms 1099-B to the return?

No, never.  Around 2003 I stopped attaching brokerage statements.  Prior to that I typed "see attached" w/ "various" for dates and totals in the proceeds and basis.  After 2003 I put broker's name for the security instead of "see attached" and stopped attaching statements.  When the 8949 came out around 2010, I started using code "M" and never attached a statement.  Thousands of tax preparers around the country never attach a statement. 

[weaverdoan]

Awesome! I wish I knew about this earlier

Thanks again for your help!

[Sara EA]

On second thought, one place where 8949s should be attached is crypto.  As of now, crypto trading platforms report nothing to IRS (this may change).  One of my clients has the software for his wallets and every year prints out pages of 8494s (28 pages last season).   I just enter the totals with "see attached" and send a PDF with the return.  Clients who don't have that software are being warned to get it.  One guy this year had over a dozen transactions (after I grouped them by crypto type), and we added $500 to his bill.  That will encourage the software purchase!

[weaverdoan]

Sorry for another follow question. What dates should I use for date acquired and sold on form 8949? If I leave the blank, ATX gives me errors of dates required. Can I use "Various" for both dates?

[Slippery Pencil]

If you use code "M" in column (f), leave the dates blank.  Otherwise, "various" should work.

[weaverdoan]

Thank you Slippery Pencil!

I will to use "various" as ATX software will give me an error if I use code "M" in column (f) and leave the dates blank.