Level 6

1099B high number of transactions combined into a single line

Forum|Forum|5 years ago
April 1, 2021
2 replies
12 views

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.

hihg

This topic has been closed for replies.

dkh

Level 15

Is your client a Day Trader ?

P

parvitstaxAuthor

Level 6

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.

dkh

Level 15

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

S

SaraW

Level 3

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!

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