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 but can be aggregated.
Short-term transactions 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 will need to be entered individually. If any aggregate entries are made on Form 8949, a PDF copy of the brokerage statement(s) will need to be attached to the return.
In TaxSlayer ProWeb, there are two ways to aggregate transactions:
1. Aggregate directly on Schedule D
To aggregate transactions on Schedule D in TaxSlayer ProWeb, from the Federal Section of the tax 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. Aggregate in a single Form 1099-B entry on Form 8949
To aggregate transactions on Form 8949 in TaxSlayer ProWeb, from the Federal Section of the tax 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 1099-B, Box 12 Cost Basis Reported to the IRS.
- 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
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.
Pro tip: If you're scanning a large brokerage statement to PDF for e-file purposes, to keep its size low scan in black and white (rather than color or grayscale) and use a resolution no higher than 300 dpi.
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