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reporting capital gain by broker totals

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March 19, 2022
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Do I have to list every investment shown on the Broker 1099-B form or can I show the net gain (loss) on schedule D and attach the brokers 1099-B listing the individual the investments sold?

Best answer by Cynthiad66

I have two Brokers and I have no adjustments to the proceeds and cost basis shown for the individual sales they report. Both are reporting Long Term Capital Gains.

In conclusion, I am reporting their combined totals on Schedule D, Part II, line 8a and not attaching either Brokers 1099B statement.

Make sense?

It makes sense. @ColeenD3 provided every scenario available regarding the reporting of summary information for form 1099-B. The The IRS should have received the same information that you have received from your brokers and can easily verify the accuracy of your reporting.

@Abigail7

ColeenD3

How to enter a summary in lieu of individual transactions:

Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, "Box A short-term covered" or "Box D long-term covered." You'll enter the summary info instead of each individual transaction.

Open or continue your return (if it's not already open) and search for stock sales
Select the Jump to link in the search results
Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2021?
- If you land on Your investment sales summary, select Add more sales
On the OK, what type of investments did you sell? screen, select Stocks, Bonds, Mutual Funds, then Continue
On the Let's import your tax info screen, select I'll type it myself
Step through the interview and select Sales section totals when prompted to choose how to enter your sales
You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue
You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen

See also: Totals for more information.

A

Abigail7Author

From what I have read I DO NOT have list the individual transactions reported on the 1099B form since that data has been sent to the IRS by the broker. This is like the 1099 s for interest and dividends where that is sent to IRS by the bank and I just report the total by bank. Instead, I must show the broker totals on schedule D

ColeenD3

You said, "From what I have read I DO NOT have list the individual transactions reported on the 1099B form". You are correct. You don't.

Exceptions to reporting each transaction on a separate row.

There are exceptions to the rule that you must report each of your transactions on a separate row of Part I or II. Any taxpayer who qualifies can use Exception 1 or Exception 2 below. Taxpayers who file Form 1120-S or Form 1065 and other qualified entities should see Special provision for certain corporations, partnerships, securities dealers, and other qualified entities, later.

Exception 1.

Form 8949 isn't required for certain transactions. You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D. This option applies only to transactions (other than 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;
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); and
You aren’t electing to defer income due to an investment in a QOF and aren’t terminating deferral from an investment in a QOF.

If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement. For more information, see the Schedule D instructions.

If you qualify to use Exception 1 and also qualify to use Exception 2, you can use both. Report the transactions that qualify for Exception 1 directly on either line 1a or 8a of Schedule D, whichever applies. Report the rest of your transactions as explained in Exception 2.

Exception 2.

Instead of reporting each of your transactions on a separate row of Part I or II, you can report them on an attached statement containing all the same information as Parts I and II and in a similar format (that is, description of property, dates of acquisition and disposition, proceeds, basis, adjustment and code(s), and gain (or loss). Use as many attached statements as you need. Enter the combined totals from all your attached statements on Parts I and II with the appropriate box checked.

For example, report on Part I with box B checked all short-term gains and losses from transactions your broker reported to you on a statement showing basis wasn't reported to the IRS. Enter the name of the broker followed by the words “see attached statement” in column (a). Leave columns (b) and (c) blank. Enter “M” in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h). If you have statements from more than one broker, report the totals from each broker on a separate row.

Don't enter “Available upon request” and summary totals in lieu of reporting the details of each transaction on Part I or II or attached statements.

1099-B summary