Wash Sales on 1099-B with Box A and D checked

[Mimbreno]

What is the best and most efficient way to enter sales reported on 1099-B with boxes A and D checked if they include wash sales? Can I use the section for Form 8949 Reporting Exception Transactions on the Capital Asset Sales Worksheet for summarized entries with Box A or D checked  if I have wash sales? Is it best to attach a pdf of the brokerage statement? 

[Just-Lisa-Now- · Accepted solution]

You can.   Does A and D mean covered sales? 

I just reduce the basis by the wash and plunk them right in the summary boxes at the top. 

As long as your gross proceeds match and youve got the correct gain/loss at the end, you wont hear a peep from anyone.

[Mimbreno]

Thanks. Yes A and D refers to covered sales. It sure would be good if Proseries had better instructions on how to do this. There are 8 pages of transactions for covered sales. Should I attach them as a pdf?

[Just-Lisa-Now-]

Im a rebel, Ive never attached anything, and never had a client asked for any of it either.

[Skylane]

Welcome back! It’s been a while. Hope you’re well.

[abctax55]

Covered Sales never have to be attached, or sent.

Non-covered maybe, if you just enter the totals.  But I've never heard of failing to do so generating any push back from the IRS.

[ljr]

there is a box to input wash sales on the asset entry worksheet 

[Skylane]

Maybe next year they’ll include a box. Bob suggested using the worksheet  under the basis amount to list the basis and wash sale

[IRonMaN]

I enter the totals as a line item sale and use the wash sale box there.

As a side note, maybe the stories aren't true.  I heard that @Mimbreno had been kidnapped by aliens.  It's nice to see you @Mimbreno , but how did you escape? 😜

[Mimbreno]

 Am hiding out in the Gila Wilderness. I'm 78. I semi-retired and only continue to do tax returns for clients who won't let me fire them. They are mostly older and retired and slowly dying off. 

Thanks for remembering me. I do miss being an active participant but aside from continuing to do a little bit of accounting consultation and tax work I am caring for my 85 year old husband. The days aren't long enough anymore.

[sjrcpa]

It's nice to have you visit us.

[Accountant-Man]

In Pro Series Pro, enter sales on a 1099-B. Enter sales proceed and basis and wash sale amount. Enter dates or various (but not for sale date) and then you must check long or short, D or A.

I don't understand the question "How to enter these?"

[abctax55]

@Mimbreno 

"...for clients who won't let me fire them. They are mostly older and retired and slowly dying off. "

LOL - you just described my practice perfectly.   

Glad to see you posting.

[Mimbreno]

I just wish Intuit had a basic program that fit the needs of a retiring tax preparer a little better. The pay per return option is way too expensive per return so I end up paying for the Basic with the ability to do 50 returns but I only use 25. The result..... I don't make much net profit after paying for the program but at least I get to do my own taxes as well as a few others with a bit of confidence.

[IRonMaN]

Thanks for paying for the bigger package you don't need --------------- it's a small step to help keep the price lower for the rest of us 😜

[Mimbreno]

Hey, I even bought some Intuit stock a few years back that recently took a big dive. Any idea what caused that?

[IRonMaN]

"Any idea what caused that?"

Yes, - they aren't making enough money on the Basic 50 package.😉

[Skylane]

 @Mimbreno 
 Fallout from OBBB…. No tax on this and that… less taxpayers filing… turdo tax revenues are way down.

[suesayers]

I report them in the Form 8949 Reporting Exception Transaction box, netting them in the Cost Basis cell in a supporting statement. It is the wrong way to do it but it is very quick and the result is correct. So far the IRS does not seem to care.