Client has a 1099-B which is 293 pages .

[taxxman02]

Client gave me a 1099-B that is 293 pages, I know from past experience that the attachment will be way to big to email. How is the best way to handle this, use form 8949 and just put the totals in, then mail the the 1099-B, just put the totals in and don't mail the 1099-B, and wait to see if they request a copy, or just send in a paper return. All opinions are welcome as along as they aren't condescending. 

 Thank you in advance. 

[IRonMaN]

The 1099B says basis is or isn't reported to the IRS?

[GodFather · Accepted solution]

As IRonMaN asks...there should be an indication as to whether the basis was reported or not.  If it was reported, there is no need to send/attach the 1099B.  If there are sales that are not reported and you choose not to list each transaction separately but combine them...then you may need to attach a copy of those transactions.  

With that said, I've never done that and I've never been questioned.  Not suggesting that is the right approach, just letting you know my experience.  

[Just-Lisa-Now-]

Ive never mailed or attached any 1099B forms. 

As long as your gross proceeds match IRS records, you'll never hear a peep from anyone.

[BobKamman]

You only use the 8949 for "uncovered" transactions.  Or maybe wash sales, and there may be many for a day trader like yours.  I just adjust the cost basis for wash sales and include them with the "covered," and IRS never asks.  

[Just-Lisa-Now-]

I do the same as Bob.

[BobKamman]

@Just-Lisa-Now- And I charge a higher fee for clients with wash sales.  To figure out whether to add or subtract the amount, I have to stop and think.  I don't have time for that during tax season.  

[Accountant-Man]

I don't understand what you mean by "not knowing whether you add or subtract." My program does it for me.

Since the input goes proceeds then cost, the loss is calculated which shows on the 1099B, pretending it's $4,000 loss. Then I enter the wash amount of $100, so the net loss is $3,900.

Less Loss.

[GodFather]

I think he is referring to the fact that he is not inputting each transaction into the Capital Assets Sales Worksheet of Form 8949, he is simply inputting the information into the Reporting Exceptions Transaction Fields which does not have a section to reflect wash sales.  You need to calculate that.  

[BobKamman]

@GodFather Well, the whole point is that he had to stop and think.  When you fill out that "covered transactions" section of the 1099-B worksheet, it doesn't tell you the net gain or loss that might appear on the 1099-B itself.  (Some brokers don't do the math.)  What I have found is that if you click on the entry space for Cost Basis, it gives you a box to enter the 1099-B amount and then the total wash sale loss amount.  The losses are added to the Cost Basis.  You have to look at the Schedule D to see if this came out correctly.  Adding losses to reduce losses is counter-intuitive, but it works.  

[Skylane]

“What I have found is that if you click on the entry space for Cost Basis, it gives you a box to enter the 1099-B amount and then the total wash sale loss amount.  The losses are added to the Cost Basis.  You have to look at the Schedule D to see if this came out correctly.  Adding losses to reduce losses is counter-intuitive, but it works’

@BobKamman  excellent thanks

[Skylane]

I'm going to rethink this (after 30 years)   I checked Fidelity, UBS and MS all say the same....

A Morgan Stanley consolidated 1099-B typically reports the adjusted basis for covered securities, including adjustments for wash sales.

Fidelity generally reports the adjusted cost basis and adjusted gain/loss on their consolidated 1099-B for "covered" securities. The wash sale loss is typically added to the cost basis of the replacement shares (disallowed loss), meaning the gain/loss column in your 1099-B usually reflects this adjustment

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/cost_basis_legislation.pdf#:~:tex...

UBS...

Based on the new requirements, your 2011 Form 1099-B
will include the gross proceeds of sales and the adjusted
cost basis of equity shares that were purchased or
acquired and subsequently sold in 2011. It may also
include the gross proceeds of sales of non-covered
securities as well.
Wash sales
Firms are now required to calculate wash sale
adjustments for covered securities. 

https://onlineservices.ubs.com/staticfiles/pws/adobe/Cost_basis_Dec_2011.pdf

If someone in the IRS wants to criticize me, CAGMC....  One less thing to think about.