Consolidated 1099-B: Really Have To Enter Each Line Transaction?

[beastykato]

So, I did a lot of trading this year and got my forms in from multiple companies.  Some of them have 80 pages of transactions for each individual stock I purchased. 

I've currently got my taxes up in two applications, TurboTax and TaxAct.  I've always done TaxAct simply because it was cheaper, but I called both places to see how to proceed and got two different answers.

TurboTax says:  As long as all my costs are reported in Box A or D and it shows "cost basis reported to IRS" I don't have to enter each line transaction.  I can just put in the summary information and submit my taxes and all will be well. 

TaxAct says:  It doesn't matter how it's reported on my forms.  I have to enter all 80 pages of transactions and submit them with my tax return.  I saw a check box on form 8949, that I can send in my 1099 forms to the IRS by mail, but the agent said I still have to input everything into the stock assistant manually (this makes absolutely no sense to me, if I'm entering them in manually why mail anything?)

Any tax professionals or seasoned do-it-yourselfers that can provide clarification on who is giving me the right info?  I'm definitely leaning toward paying TurboTax the extra money because I like their answer better.

EDIT:  Just because someone might bring it up.  I don't believe TaxAct supports upload from my two main brokerages Loyal3 and Robinhood. 

[FerrumB5]

For 2015 tax year, when I sold a lot of funds, I had to enter 250+ separate positions in TaxAct. Not fun. There's a faster way to do it - don't open a new file for each one, rather enter them line by line. Can't remember now how to get to this options, but it exists

[Roots&Wings]

I had to read about this too. IRS instructions for Schedule D about when you can avoid individually listing each transaction on Form 8949:

Lines 1a and 8a—Transactions Not Reported on Form 8949
You can report on line 1a (for short-term transactions) or line 8a (for long-term transactions) the aggregate totals from any transactions (except sales of collectibles) for which:

- You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g,

- The Ordinary box in box 2 isn’t checked, and

- You don't need to make any adjustments to the basis or type of gain or loss reported on Form 1099-B (or substitute statement), or to your gain or loss.

[With This Herring]

If anyone should need to enter extensive detailed transaction information (for example, lots of wash sales), most tax programs allow you to import or copy-paste in transaction information that is in CSV or spreadsheet format.  As described below, Robinhood definitely provides an Excel file upon request.  I would be surprised if Loyal3 did not have a similar function.

When we couldn't wring a spreadsheet out of a client with hundreds of sales and there were adjustments to sales, OldFirm would have us enter in the forms 8949 summary information for each type of transaction from each broker's 1099-B, then electronically attach PDFs of those 1099-B forms to the return when it was filed.  For descriptions, we used something like "See 1099-B Merrill Lynch Acct #1234."  This was the April 2015 filing season, though, so I don't know if this method is still acceptable.  It looks like the IRS has trimmed down the 8949 reporting requirements significantly, which is REALLY nice.

Paying a tax-prep place to do extensive data entry for you is going to cost.  I would not recommend H&R Block.

Most brokerages have a function that will let you download your sales in either CSV or spreadsheet format (and CSV can be turned into a spreadsheet by opening it up with a spreadsheet program such as Excel).  If you don't see this feature, contact your brokerage.  It looks like TaxAct uses a spreadsheet-style input for stock sales, and they do appear to have an import function (see list of relevant answers).  It will probably take some time to get a simple import/paste system working, but write down your steps for future reference and I'd bet you could have this done very quickly in future years.

Thanks for the tips I'll definitely look into it!  That would make life a whole lot simpler.  I don't recall how robinhood delivered my forms to me last year, but I'm sure someone here is familiar with them.  I wouldn't doubt that they do indeed send it in a spreadsheet format.  I just hope the import goes smoothly.  Sometimes from one program to another the formatting can get destroyed!

As for H&R block, yeah I didn't want to use them, I've seen how expensive they can be from friends and family using them in the past.   If this import function doesn't work for me and I'm sitting here for 2 hours importing individual stock transactions I might just break down lol.

It looks like their default is to send you PDF tax forms, but you can get your trading history in Excel if you email them:
https://support.robinhood.com/hc/en-us/articles/210216743-Tax-Center

In some occasions, the cost basis generated on your 1099 might be incorrect. This can happen for a variety of reasons, such as a corporate action, reverse stock split, or wash sale. If this happens to you, reach out to us at support@robinhood.com to request an Excel file of your entire trading history from which you can calculate your correct cost basis.

*snip*

[beastykato]

Thanks,  I definitely remember asking that question and will definitely email them as suggested, should I need to manually enter that information.  I've got all the Robinhood information uploaded as they partner with TurboTax.  So, their import was very simple.  I'll have to contact all the other brokerages though for spreadsheets.

My main dispute here is that TurboTax is telling me I don't have to bother with this at all?  Just put in my summary information and be done.   That's the main answer I'm trying to get.

[With This Herring]

My main dispute here is that TurboTax is telling me I don't have to bother with this at all?  Just put in my summary information and be done.   That's the main answer I'm trying to get.

Did you miss Step-In-Time's answer?  IRS instructions are certainly an authoritative source.  :)

I had to read about this too. IRS instructions for Schedule D about when you can avoid individually listing each transaction on Form 8949:

Lines 1a and 8a—Transactions Not Reported on Form 8949
You can report on line 1a (for short-term transactions) or line 8a (for long-term transactions) the aggregate totals from any transactions (except sales of collectibles) for which:

- You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g,

- The Ordinary box in box 2 isn’t checked, and

- You don't need to make any adjustments to the basis or type of gain or loss reported on Form 1099-B (or substitute statement), or to your gain or loss.

So, I interpret this as (and, really, refer to the official IRS writing instead of relying on me!)...
Any "weird" sales that aren't just 1099-B reported selling price less 1099-B reported cost equals net profit/loss will need to be reported separately.  This includes any transaction where you disagree with the 1099-B numbers or basis wasn't reported or you have an accrued market discount, a wash sale, or an ordinary income sale - any one of these items means you need to report that transaction's details on a form 8949.

In theory, you could pick out all the weird sales to enter separately, then enter the rest in summary on the Schedule D.  However, as it will be probably be practical to just import everything from your two brokers, it might be much easier to just enter everything as detailed.

I can't comment on what TurboTax and TaxAct told you except to say that it is always possible that either an agent made a mistake, was giving you advice after seeing/not seeing "weird" sales on your return, or something was misunderstood by either side of the discussion.

[kyzymurgist]

Found this thread while searching for a solution to the same problem in TaxAct.  I didn't find any good answers online but finally figured out how to do this in Taxact.  In Federal Quick Q&A Topics, select this topic....Investment Income>Gain or loss on sale of investments>Enter totals from a statement of transactions you will attach to your return.  Then just enter the totals from your 1099-B for each category type. Should be just two line items for A (short term) and D long term) entered into the Form 8949 Attachment - Summary.  I haven't figured out yet how to attach the 1099-B PDF but assume it will be revealed before it allows me to electronically file.  Good luck.

[seattlecyclone]

Schedule D allows you to enter totals for any transactions where basis was reported to the IRS and you don't have any corrections to report. Whether your particular tax software has implemented this feature is a different question entirely.

[FB2020]

I used TaxAct for a few years and I thought it stated that I just need to put in the summary totals for each section (A, B, C) and can attach a PDF (or mail) the sheet listing individual trades.
I have done that for the past 2 years, since I had a lot of trades. My CPA also suggested the same, he doesn't think its important to list all trades. All they care about is the totals, and you can send the sheet by mail (or attach it with the return as PDF).

[FB2020]

Found this thread while searching for a solution to the same problem in TaxAct.  I didn't find any good answers online but finally figured out how to do this in Taxact.  In Federal Quick Q&A Topics, select this topic....Investment Income>Gain or loss on sale of investments>Enter totals from a statement of transactions you will attach to your return.  Then just enter the totals from your 1099-B for each category type. Should be just two line items for A (short term) and D long term) entered into the Form 8949 Attachment - Summary.  I haven't figured out yet how to attach the 1099-B PDF but assume it will be revealed before it allows me to electronically file.  Good luck.

Yes I have done this in TaxAct in the past (attached the PDF). It had the feature (I used this for 2014 tax year)

[With This Herring]

Schedule D allows you to enter totals for any transactions where basis was reported to the IRS and you don't have any corrections to report. Whether your particular tax software has implemented this feature is a different question entirely.

Do you or anyone else around here use UltraTax?  I just started with it this Season, and overall I like it much better than ProFX for individual returns.  However, I can't find any way to enter summary A & D no adjustments items for Schedule D as you mention.  It has been so frustrating.  We've just been entering "Summary [Brokerage]" in the 8949s and electronically attaching PDFs, but that is a pain.  It's a little late now, but if anyone can tell me how to do this for the extended returns, I would much appreciate it.