Brokerage firms are required to report stock transactions on Form 1099-B. While the brokerage information may contain multiple transactions, they don't necessarily need to be individually entered in the tax return.
There are two ways to report aggregated transactions:
- Aggregate directly on Schedule D.
- Combine multiple transactions in a single entry on Form 8949.
1. Aggregate directly on Schedule D
On Schedule D, short-term and long-term transactions are aggregated separately, and a transaction can be included in an aggregation if it meets the following criteria:
- Form 1099-B Boxes 1f (accrued market discount) and 1g (wash sale loss disallowed) are blank;
- Form 1099-B Box 2 "Ordinary" check box isn't checked;
- Form 1099-B Box 3 "QOF" check box isn't checked;
- Form 1099-B Box 12 shows basis reported to the IRS;
- The taxpayer isn't electing to defer income due to investing in a QOF, nor terminating deferral from a QOF investment;
- There are no other adjustments needed to the basis or to the gain or loss;
- The type of gain or loss (short-term, long-term, or ordinary) isn't being changed.
Transactions that can't be aggregated are entered on Form 8949.
To aggregate transactions directly on Schedule D in the individual income tax return in TaxSlayer ProWeb, from the Federal Section of the return (Form 1040) select:
- Income
- Schedule D/Form 8949
- 1099-B Transactions with No Adjustments - You'll see entry lines for short-term and long-term transactions for the taxpayer, and in a return being filed MFJ you'll also see entry lines for the spouse and for jointly held assets. For transactions that are being aggregated, enter the aggregate sales price and the aggregate cost basis on the appropriate line(s).
The amounts entered will flow to Schedule D Line 1a (short-term) or Line 8a (long-term).
2. Combine in a single entry on Form 8949
On Form 8949, you can combine multiple similar entries into one line. For example, you can combine multiple short-term wash sale transactions into one entry, or combine multiple long-term transactions that have no adjustments into one entry.
Caveat: If the taxpayer has brokerage statements from more than one broker, a combined entry should consist of transactions from one broker only.
To enter a combined transaction on Form 8949 in the individual income tax return in TaxSlayer ProWeb, from the Federal Section of the return (Form 1040) select:
- Income
- Capital Gains and Losses
- Capital Gains and Loss Items - If you've already made one or more entries, click + Add a Capital Gains Transaction.
- For a MFJ return, select if for the taxpayer, the spouse, or both.
- Description of Property - Enter a description, e.g., 1099-B ST (for short-term).
- Date Acquired - Select Alternate Option, then either Various - Short Term or Various - Long Term as appropriate.
- Date Sold - Enter the last day of the tax year.
- Sales Price - Enter the aggregate sales price.
- Select cost basis type - Select the appropriate typel
- Cost - Enter the aggregate cost basis.
- Adjustments - Check the box next to Reporting Multiple Transactions on a Single Row.
When finished with the transaction, click either Continue (if you're finished entering capital gain/loss transactions) or Save & Enter Another (if you have another capital gain/loss transaction to enter).
Attach PDF Documentation
Pro tip: If you're scanning a brokerage statement to PDF for e-file purposes, to keep its size low scan in black and white or grayscale (not color), use a low resolution (no higher than 300 dpi), and omit unnecessary pages that don't include transaction info.
To attach a PDF of the documentation showing the details of the transactions that have been aggregated, from the Federal Section of the tax return (Form 1040) select:
- Income
- Capital Gains and Losses
- PDF Attachments - Either drag and drop the file from a Windows File Explorer window to the upload area, or click the upload area and navigate to the PDF. When finished, click Attachment List to return to the Schedule D menu.
Note: This is a guide to aggregating Form 1099-B transactions in TaxSlayer ProWeb. It is not intended as tax advice.
Additional Information:
IRS: Instructions for Schedule D
IRS: Instructions for Form 8949
IRS: Instructions for Form 1099-B Proceeds From Broker and Barter Exchange Transactions