Import Transactions, PDI Indicator or PDF Attachment (1099B, 8949, ScheduleD) (2024)

7 Months Ago

1040 Individual

In a return with a large number of brokerage transactions (1099-B), are there alternatives to entering each transaction manually on the 8949 screen?

Import Transactions

If you have numerous transactions to enter on screen 8949, you can request a trades import job from GruntWorx or complete your own spreadsheet and import the data into the return directly.

If you scan and upload a taxpayer's documents to GruntWorx, you can select a Trades add-on. In addition to an Organize PDF, you'll get an Excel file that you can import into Drake Tax that will complete Form 8949 entries.See the Related Links at the bottom of this page for more information.

You can manually create an Excel spreadsheet and import it into Drake Tax.See the Related Links below and/or watch the videos8949 Import Optionsand8949 Import Toolfor more details about the process.

Summarize Entries

Generally, the IRS requires all sales and exchanges of capital assets, including stocks, bonds, etc., and real estate (if not reported on Form 4684, 4797, 6252, 6781, or 8824) to be entered on separate lines on Form 8949. There are two exceptionsto this requirement detailed below.

Exception 1

Per theForm 8949 Instructions:

"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."

In Drake Tax:

• Use theD2screen to summarize the transactions as either long or short term. Enter the totals for proceeds and cost or other basis for short term in line1aor long term in8a.

Per IRS guidelines, no attachment is required: "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."

Exception 2

Per theForm 8949 Instructions:

"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... Enter the combined totals from all your attached statements on Parts I and II with the appropriate box checked..."

In Drake Tax:

• Enter the following details on the8949screen:
  • Enter a description ending in "See attached statement."
  • Do not enter a date acquired or date sold or disposed of in line1bor1c.
  • Choose thetype of gain or lossas either long or short term (optional - defaults to short term if not entered).
  • Complete lines1d-1g, as applicable.
  • SelectM in the drop list for Adjustment #1 under the column Form 8949 adjustment code.
• The IRS requires an attachment for this entry to be filed with the return (PDF attachment) or submitted by paper with Form 8453 after e-filing the return.
  • To attach a PDF to the e-filed return, first compile and scan all the supporting documents and create a PDF file.
    • Suggested file names can be found at the bottom of screen8949.
    • Drake Documents can also be used for this process.
    • SeeRelated Linksbelow for details on creating and attaching a PDF.
  • Form 8453 can be filed to submit documentation for an e-filed return by paper.
    • To do this, mark theForm 8949box under theForm 8453 Paper Document Indicatorssection of theEFscreen.
    • Review the supporting statements and the 8453 in View and make any needed corrections.
    • e-File the return.
    • Print the 8453, attach the Forms 8949 to it and mail to the IRS within 3 business days after receiving acknowledgement that the IRS has accepted the electronically filed tax return.
    • The 8453 does not need to be signed.
    • SeeRelated Linksfor details.

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