Discussion:List on Schedule D
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> List on Schedule D
| 31 January 2007 | |
| Anyone see a problem summarizes cost and sales prices for a brokerage statement (sorted by long-term and short-term). Would you attach an excel sheet to the efile? This is for my own return... | |
| 31 January 2007 | |
| The IRS wants each transaction listed separately in the format of Sched D or Sched D overflow.
That being acknowledged, I have several clients with hundreds of transactions who don't want to pay me enough to itemize them. I've been sending in summary figures for years and the IRS hasn't complained. When we submitted by mail I attached the brokerage report as a statement. Now that we e-file I don't attach anything. It may be a technical violation, but as I understand it the IRS just checks the 1099-B totals, and if the totals on the return match it doesn't rasie a flag. I'd be interested to hear how other prepares deal with this and whether the IRS has enforced the line by line reporting rule. By the way, I've spoken to the IRS several times about requiring brokerage houses to report sales in Sched D format. They say brokerages complain about the expense, but since they have the whole thing computerized and report it on year-end statements anyhow it would be relatively easy for them to produce a report in the IRS format. The brokerages also complain that they don't always have the basis info. My solution is that they should only be required to report the info they have -- which they already do, but in varied formats. DavidH | |
| 31 January 2007 | |
| Hi the IRS allows summarries on the sch D you are required to attach the detail to the form 8453 if you e file. bye | |
| January 31, 2007 | |
| Beginning for 2006, the IRS is requiring that Sch D schedules be sent to the IRS with Form 8453. ProSeries Pro included some text about this on the Sch D entry sheet. | |
| 31 January 2007 | |
| Wes & Deb have it right. In fact, attaching the details in the same form as Form D-1 was required for 2005 tax returns. Lacerte has special data entry field for the summary info. -- Larry Hess, CPA, Albuquerque, NM - Talk to me | |
| January 31, 2007 | |
| See Schedule D Instructions, page D-6, under Specific Instructions, Lines 1 and 8, for more info about sending in attached statements. | |
Death&Taxes (talk|edits) said: | 31 January 2007 |
| Originally in 2005 they wanted no summaries but backed off in early January. | |
| January 31, 2007 | |
| I'm torn between doing what I've always done, which is ignore them, summarize and efile as usual without the 8453....and BURYING THEM IN STUPID FREAKIN' PAPERWORK THAT THEY DON'T NEED OR WANT UNTIL THEY REALIZE THAT BY US SENDING ALL THE MAIL!!! | |
| 31 January 2007 | |
| Hi JR take a pill it's too early to rant about the IRS. :) bye | |
Chautauqua (talk|edits) said: | 31 January 2007 |
| Brokers cannot format in Sched D (long term, short term) because they often do not know when the stock was bought.
I have a client with more than 300 sales per year, and would not want the fee (and errors) if I were to enter them in detail. I attach a client-prepared Excel worksheet with the totals posted to Sched D, and file a paper return. Never had a problem. | |
| 31 January 2007 | |
| I'm with JR1. We regularly summarize Schedule D unless there are less than 10 transactions. We do not file any backup and we have never been contacted by the IRS. In fact I consider the Schedule D to be the least likely target or audit in the entire tax return. I don't think the IRS WANTS to know where some of the clients get their basis. | |
| 4 February 2007 | |
| Well, I'm going to keep doing what I've always done -- summarizing, not itemizing or sending anything -- till they complain.
Of course the brokerages could supply the info, if the IRS required it, just the same way they do now -- with an asterisk or notation for missing information, and without totals when an item is missing. They just need to format what they DO know as per sched D. I see lots of "realized gains and losses" statments that just leave out what they don't know. And also see a lot that in fact have all the required info, so why not give it to us formatted right? Sure would be better if brokerages would supply realized gains ans losses electronically or in a format that could be scanned into an Excel worksheet . . . DHTax | |
| 5 February 2007 | |
| Sorry, San Diego, I missed your question a few days ago. The answer is that you enter summary amounts in Screen 17 in Carryover/Misc Info. in the section labeled Schedule D-1 Attachment Totals. -- Larry Hess, CPA, Albuquerque, NM - Talk to me | |
