HELP -- How to Enter Stock Sales Summary Amounts When There Are Wash Sales

[cpamiami]

If there's hundreds of stock sales and only 10 wash sales, you can't enter code "W", type in the wash sale amount without choosing a date ("Various" is not allowed) and entering code "M" and attaching the statement. If you leave off the dates, enter code "M", you can't enter the wash sale total. If you choose code "O" (in lieu of "M") you can enter the wash sale amount in the other adjustments column. So which is the preferred method? Entering the wash sale total in the adjustment and choosing code "O", and have the wrong code referenced on Form 8949? Entering a single arbitrary sales date for all securities, entering in the wash sale amount and entering codes "M" and "W"? Do I need to remove all the wash sales, report these one line at a time, then summarize the remainder and add an attachment? This problem impacts every single preparer and I can't believe ProSeries Support can't give me a straight answer on this question. I do not want to have to answer multiple, automated underreporter letters from the IRS after tax season because I'm doing it wrong! Thank you.

[Frustrated-in-IL]

I have a case number on this issue from the beginning of February.  Now nearly a month later, I still have not received a return call from ProSeries.  After numerous calls to customer service without any acknowledgement that there even is a problem, I gave up.

You are right, this is affecting anyone with multiple sales and a preparer who does not want to enter in some cases hundreds of transactions individually.  The entries for a trust have remained the same as last year, with just the entering of an "S" or an "L" needed.  Yet on the individual return side, the only thing that has changed is some genius decided entering info needed would now go on ANOTHER worksheet and then for no reason decided to disable the "S" or "L" entry feature from working as it did last year.

I have just been entering "12/31/2020" as a date for all my transactions.  Yes, it is not correct.  But with the detail attached as a pdf, all the exact dates are there so I can't imagine IRS will have an issue with it.  Plus, after it wasn't fixed in several updates after my initial call, and others clearly having the same issue as evidenced by the posts on this forum, the returns I was holding for the fix began overrunning the office so I needed to finish them.  Just make sure you do enter the "S" or "L" accurately so the aggregate transactions go to the proper part of Form 8949.

As for support, it is useless.  Non-existent.  Worthless.  Pick the word which best fits.  I prefer all three words.  Honestly, has anyone had an issue addressed by the person who eventually answered the call?  That person then has to type the problem to some unknown/unseen/unheard person who does not understand what the hell you are asking about.  Can anyone think of a more inefficient manner in which to operate "customer service"?  Any slim chance you have of getting your question answered depends solely on the person you spoke with communicating clearly and concisely what your issue is by typing away to the mystery person somewhere else.  Since the first tier person can't help even when staring at the problem since you allowed them to see your computer screen, is it too much to ask that the person that your problem has been pawned off to can also screen share and see the issue directly?  Bottom line, don't expect a straight answer or any worthwhile assistance at all from customer service.

[jofijohnjoseph]

Just enter the total proceeds and cost basis for each type of sale (Covered Short Term, Covered Long Term, Noncovered Short Term, Noncovered Long Term, enter a final sales date of 12/31/20, manually adjust the holding period to reflect S or L, and you can enter the cumulative wash sales for each type of sale.  Every 1099 form will have this information in summary format.

The IRS doesn't care if you put down 12/31/20 as a fake sales date as long as you correctly capture the short term or long term nature of the sale.

[cpamiami]

Thanks for your great response. I couldn't agree more. So surprising how Intuit is basically saying "take your best guess" because we don't know. Shocking!

[cpamiami]

Thank you so much for taking the time to answer. Although I love your approach, I would be much happier if just writing "12/31/XX" was declared "what you should do" by someone of substantial authority that we could hang our hat on. I don't want to have some IRS robot search to try to match the dates and get some automated letter later stating that all the wash sales are missing. Absent any affirmative response from Intuit, I think I'm inclined to agree and will most likely proceed in this way moving forward.