Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

1099B high number of transactions combined into a single line

parvitstax
Level 3

I have a client with 900+ pages of  transactions. Is it legal to summarize the short-term and long-terms trades on their own lines when the form has reported wash sales? In the end they are matching numbers and these are also covered transactions reported to IRS already.

Labels (1)
0 Cheers
4 Replies 4
dkh
Level 11

Is your client a Day Trader ?     

0 Cheers
parvitstax
Level 3

Their trend is more 1 company multiple trades a week. They do not trade every single day they just make multiple transactions on the days they are involved. Would that count as day trading? 

How would the answer change if they were and were not a day trader? Probably good to cover both.

0 Cheers
dkh
Level 11

I've never prepared return for a day trader but I do believe there are special rules that need to be followed.  

0 Cheers
SaraW
Level 1

I think I may be able to point you in the right direction...In the Form 8949 instructions, it lays out "exceptions" to having to report transactions individually.  After they discuss "Box F" in the instructions, you'll see "Exceptions to reporting each transaction on a separate row."  Hopefully your software allows to attach the summaries if you're using Exception 2...  Make sure you read BOTH exceptions to see which one you fall into for each lump of transactions.  Hope this helps!

0 Cheers