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Attach a summary to the Schedule D and Form 8949 in ProSeries

by Intuit•2• Updated 3 months ago

Before you start:

In most cases cryptocurrency or virtual currency is reported on the tax return in the same manner as property such as stock or other capital gains or losses. See Frequently Asked Questions on Virtual Currency and Digital Assets Transactions for the IRS guidelines. If you are reporting Digital Assets transactions in the 1040 return, be sure to mark the Yes box on the At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? question.

  • If the transactions were virtual currency or cryptocurrency, you can use this method if the basis was reported to the IRS for the transactions.
  • In order for ProSeries to generate the 8949 correctly, you may need to enter more than one summary depending on the type of transactions your client has. You would want to group the transactions by the 8949 Box Codes in the table:

What code do I enter in the 8949 Box field?

8949 Box CodeBasis Reported to IRS?Reported on Form 1099B?Holding Period
AYesYesShort Term
BNoYesShort Term
CNoNoShort Term
DYesYesLong Term
ENoYesLong Term
FNoNoLong Term
XNoYesUndetermined - the holding period will need to be manually entered

How do I enter the summary in ProSeries 2020 and newer?

  1. Open the Schedule D.
  2. Scroll down to the Miscellaneous Options section.
  3. On line A check Yes if you are mailing the paper statement to the IRS. Check No if you will be attaching the details in a PDF attachment.
  4. Select the QuickZoom to the Form 1099-B Worksheet.
  5. In the Quick Entry Table enter one line for each group of transactions grouped by the 8949 Box code.
    PCG_PS_StockSummary.png
  6. In the Adjustment Code(s) field enter code M. If you need to enter multiple codes see Entering multiple codes on Form 8949, Column F for entry instructions.
  7. Some of the more simple stock summaries may not need an attachment sent to the IRS. To see if you need to send in an attachment see the PDF Attachment section at the bottom of the 1099-B worksheet.

Including the summary with the e-filed return:

When you have completed the data entry correctly the IRS will be looking for an 8453 or a PDF attachment with the detailed stock breakdown. To add a PDF:

  1. Open the Schedule D.
  2. Scroll down to Miscellaneous Options.
  3. Change line A to No.
  4. From the E-File menu, choose Attach PDF files.
  5. Click on Add Attachment to browse for the PDF.
  6. Highlight the PDF and click Open.
  7. In the Type field change the type from Other to Form 8949.

If you would prefer to mail the statement to the IRS leave the Miscellaneous Options on Yes and mail the statement, along with a printed Form 8453 to the IRS.

For most stock transactions, there are only a few required entries on the Capital Gain (Loss) transaction Worksheet. Each grouping will need it's own Capital Gain (Loss) Transaction Worksheet.

  1. From the Schedule D select the QuickZoom to the Capital Gain (Loss) Transaction worksheet.
  2. Enter a description of the property sold. This is where you will use your grouping names from above.  Example: Total Long-term with basis reported on 1099-B.
  3. Click Create to create a new copy.
  4. In Part I line 1 check the boxes for the grouping type you are entering.
  5. In Part I ensure you check the box 2j for Statement with details attached. This is what generates code M for the 8949.
  6. In Part IV line 12 check Short-term or Long-term, whichever applies.
  7. If the transaction was not the taxpayers see Part VIII line 8 to change the transaction to Spouse or Joint.
  8. In Part X enter both Sales Price on line 4 and Cost or other basis on line 5.
  9. Review Part XI to see the numbers that will flow to the Schedule D and 8949 for the client.

In some situations where you may need to enter an adjustment to the summary, you can use the "Total adjustment to gain (loss)" field in Part X line 7.

If you need another Capital Gain (Loss) Transaction Worksheet there is a QuickZoom at the top of the Capital Gain (Loss) Transaction Worksheet to create another copy.

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