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PDtax
PDtax, CPA firm owner
Category: Financial Software
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Experience:  Have used almost every software package available.
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Im working on my 2012 tax return. Due to a technical issue

Customer Question

I'm working on my 2012 tax return. Due to a technical issue I can't download the 2012 1099-B directly on to my tax returns. Rather than manually enter the data, I'll attach the form to my tax return and file by mail. However, I still need to enter the following totals
on my tax return: short term & long term gain, losses and disallowed losses but I'm not sure how to do that (using turbo tax).
Thank you.
Submitted: 4 years ago.
Category: Financial Software
Expert:  PDtax replied 4 years ago.
Welcome to the site. I will be helping you today.

If you are filing by mail, and attaching the detail, you might consider the following shortcut:

Your summary should have four (or two) capital gains groupings, long term and short term gains and/or losses, or just two for the long term and short term net gain or loss. Use those four totals, and use them as the transactions to enter in TurboTax.

For example, let's say you have $4,000 LT gain, $700 LT loss, and $2,000 ST gain. Your attached sheets show the detail and report those totals (so they can be verified at IRS).

Report one LT transaction, title it "See statement - LCTG" (long term capital gains) and select LTCG treatment for the sale totals. Do the same for the LTCL (capital losses) and select LT loss treatment. Then for the STCG (short term capital gains) and short term gains treatment.

The detail will support the Schedule D, and you should be able to report without all the data entry.

Thanks for asking at Just Answer/PDtax.
Customer: replied 4 years ago.


I do have both long term and short term gains and losses. If I'm understanding you correct, following your short-cut will result in 4 1099-B transaction being reported: L-T total gains, L-T total losses, S-T total gains & S-T total losses. On both long term & short term basis I have disallowed losses. How do I account for those / enter them to the tax return. Do I just deduct the disallowed amounts from the total losses?


Thank you.

Expert:  PDtax replied 4 years ago.

yes, just report the sale totals and total basis as the bought and sold totals. Describe each of the four as See statement - LTCG, STCG, etc. Use various as the dates of sale and purchase. Override the date choice for the software to select the long or short term treatment as appropriate.

 

the disallowed losses get special treatment if they are wash sales.

 

If that's the case, and there are a number of them, I would produce another supporting schedule, in Excel to print out and attach to the return, starting with the LCTG as reported by your brokerage. Then correct it for the wash sale transactions that aren't counted, and the revised totals are the ones I would use in the TurboTax transactions. Do that for each grouping.

 

Thanks again from Just Answer.