Generally, the IRS requires all sales and exchanges of capital assets, including stocks, bonds, etc., to be entered on separate lines on Form 8949, however, the Form 8949 Instructions provide two exceptions to this requirement. - Exception 1: When basis was reported to the IRS and no adjustments are needed, totals may be reported directly on Schedule D, Lines 1a or 8a.
- Exception 2: If you attach a statement that includes all required details in similar format, you can summarize multiple transactions per category.
Exception 1
If you qualify for exception 1, instead of entering each individual transaction, you may enter just the totals on Schedule D, line 1a (short term) or 8a (long term). If you choose to report these transactions on lines 1a and 8a, don't report them on Form 8949. You don't need to attach a statement to explain the entries on lines 1a and 8a and, if you e-file your return, you don't need to file Form 8453.
- Select Federal > Investment Income > Gain or Loss on the sale of investments > Capital gain or loss (Form 1099-B) and Add a new form.
- On the Transaction Details screen,
- In the Term and Typedrop list, select either:
- A - Short-term transaction in which basis was reported to the IRS (for short-term transactions)
- D - Long-term transaction in which basis was reported to the IRS (for long-term transactions)
- For the Description of Investment or Property enter either:
- Aggregate total for line 1a per IRS instructions (for short-term transactions)
- Aggregate total for line 8a per IRS instructions (for long-term transactions).
- Enter the Date Acquired as Various.
- Enter the last Date Sold or Disposed, or 12/31/2024 to represent a year-end summary.
- Enter the Sales Proceeds.
- Enter the Cost or Other Basis.
- Click Continue and Continue again.
- Verify the holding period (if prompted) and click Continue.
- When you print your return, you will see the aggregate gain or loss reflected on Schedule D.
NOTE This method cannot be used for the sale of collectibles, Qualified Small Business Stock (Section 1202), or for disallowed losses such as wash sales or QOF transactions. If there are any adjustments, you cannot use Exception 1, but you may be able to use Exception 2, detailed below.
Exception 2
If you qualify for exception 2, instead of entering each individual sales transaction, you may summarize trades from a brokerage statement using an attachment. Your attached statement should include:
- Description of property
- Date acquired
- Date sold
- Sales price
- Cost or other basis
- Adjustment code (if any)
- Gain or loss
Transactions must be grouped into one of six Reporting Categories:
- Short-term category:
- (A) Received a Form 1099-B showing basis was reported to the IRS
- (B) Received a Form 1099-B showing basis was NOT reported to the IRS
- (C) Did not receive a Form 1099-B
- Long-term category:
- (D) Received a Form 1099-B showing basis was reported to the IRS
- (E) Received a Form 1099-B showing basis was NOT reported to the IRS
- (F) Did not receive a Form 1099-B
The summary method is useful if you have numerous transactions to report as you can only enter 2000 separate Form 1099-B transactions in TaxAct.
TaxAct allows you to enter up to six providers (brokerages). You can then enter up to six reporting categories for each of those providers. If you have more than six brokerages, prioritize the ones with the most transactions.
Data Entry
IMPORTANT If transactions were already imported or entered manually, make sure to review those before entering summary totals to ensure that you are not duplicating entries.
Online
- From within your TaxAct return, click Federal > Investment Income > Gain or Loss on the sale of investments > Enter totals from a statement of transactions you will attach to your return (Form 8949).
- Click Add a New Provider.
- Enter the Name of Provider and click Continue.
- Select the Term and Type (categories A-F detailed above) and enter the Transaction Details, then click Continue.
- Repeat as needed for more providers or include additional reporting categories for the same provider.
- During the filing process, you will be prompted to attach your PDF. If you're unable to attach the PDF, you must mail Form 8453 along with the attachment. For paper returns, simply include the Form 8949 summaries with the mailed return.
Desktop
- From within your TaxAct return, click Federal > Investment Income > Gain or Loss on the sale of investments > Enter totals from a statement of transactions you will attach to your return (Form 8949).
- Click + Add beside New Copy of Federal Form 8949 Attachment.
- On the screen titled Let’s go through your 1099-B providers one at a time enter the Name of Provider (firm who supplied you with the attachment), then click Continue.
- On the screen, Enter the details of these totals one term and type at a time enter the Term and Type (categories A-F detailed above), Transaction details, and any other selections (if needed), then click Continue.
- Repeat as needed for more providers or include additional reporting categories for the same provider.
- During the filing process, you will be prompted to attach your PDF. If you're unable to attach the PDF, you must mail Form 8453 along with the attachment. For paper returns, simply include the Form 8949 summaries in your mailing.
Note: Form 1099-B received from your broker may report adjustment amounts to be entered on Form 8949, Column G. Enter this information using the total adjustment amount fields.
It is possible to attach multiple PDF files to represent summary totals for Form 8949 Sales and Other Dispositions of Capital Assets. In a situation where a single PDF file is large, it may even be necessary to attach multiple PDF files as there is a size limitation of 3 MB (online) or 2 MB (desktop).
Alternative Options
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