How do I enter stock transactions in an individual return in ATX™ as exception to reporting each transaction?
Report Directly on Schedule D, Lines 1a or 8a
You can report the aggregate totals for brokerage transactions directly on Schedule D, Lines 1a or 8a if the following criteria are met.
- You received a Form 1099-B (or substitute statements) that shows basis was reported to the IRS.
- There are no Line 1g adjustments on Form 1099-B.
- You don’t need to make any adjustments to basis or type of gain/loss.
- The transaction is not a sale of collectibles.
Form 8949 is not required if all the criteria are met. There is no need for a statement explaining the Line 1a and 8a entries and no need to file Form 8453 or attach brokerage statements to the return.
Report Summary Transactions (per Broker) on Form 8949
Form 8949 provides a method for reporting a summary of multiple transactions. This method would be used if the transactions do not qualify for Schedule D direct reporting or if you prefer to list more detail pertaining to transactions on Form 8949.
On Form 8949, enter a separate row for each broker summary with totals for each Schedule D row and box.For example: There should be a separate summary line for Part I, Box A; Part I, Box B; etc., per broker statement.
- In the Description of property field enter the name of the broker followed by “See Attached Statement”.
- Leave fields (b) and (c), Date Acquired and Date Sold or Disposed blank.
- Manually choose the Holding Period and Form 8949 Box for the summary line.
- Enter M for the Form 8949 Code(s) field in column (f).
- Enter the totals that apply in Cost or other basis field (d) and Cost or other basis field (e).
- Adjust the Amount of Adjustment field (g) and Gain or Loss in field (h) as appropriate.
The brokerage statements must either:
- Be transmitted with the return as a PDF, or
- Mailed to the IRS with Form 8453
E-filing transactions as a PDF
- Click to find out How do I attach PDF forms and other documents to returns in ATX™?.
- In some cases, the PDF will be too large to attach and transmit.
- Click to find out how tooptimize the Size limit of a PDF attachment in ATX.
- If optimizing the PDF does not reduce the file size sufficiently the brokerage statements should be mailed to IRS with Form 8453.
- If attaching as a PDF under E-file select Attach PDF, locate Form 8949 Exception to Reporting.
To e-mailForm 8453, do the following:
- Add Form 8453 to the return.
- On the 1040 EF Info form, click the Mailing Inst tab, select the Form 8949, Sales and Other Dispositions of Capital Assets, (or a statement with the same information). check box at the bottom of worksheet. This signals the IRS that the e-file contains summary transactions and that a paper list will be mailed.
- The worksheet shows the address where Form 8453, the broker’s statements, and other transaction lists should be mailed.
