Form 1099-B - Aggregating Multiple Stock Transactions
Brokerage firms are required to report stock transactions on Form 1099-B. While the brokerage information may contain multiple transactions, they don't necessarily need to be individually entered but can be aggregated on the tax return.
You can aggregate short-term transactions and long-term transactions if they meet the following criteria:
- Form 1099-B Boxes 1f and 1g are blank;
- Form 1099-B Box 2 "Ordinary" check box isn't checked;
- Form 1099-B Box 3 "QOF" check box isn't checked;
- Form 1099-B Box 12 shows basis reported to the IRS;
- The taxpayer isn't electing to defer income due to investing in a QOF, nor terminating deferral from a QOF investment;
- There are no other adjustments needed to the basis or to the gain or loss;
- The type of gain or loss (short-term, long-term, or ordinary) isn't being changed.
Transactions that can't be aggregated will need to be entered individually. A PDF copy of the brokerage statement(s) will need to be attached to the return if any aggregate entries are made.
To aggregate transactions in Software, from the Federal Section of the tax return (Form 1040) select:
- Income
- Capital Gains and Losses
- Capital Gains and Loss Items
- + Add a Capital Gains Transaction - For a MFJ return, select if for the taxpayer, the spouse, or both.
- Description of Property - Enter a description, e.g., 1099-B ST (for short-term).
- Date Acquired - Select Alternate Option, then either Various - Short Term or Various - Long Term as appropriate.
- Date Sold - Enter the last day of the tax year.
- Sales Price - Enter the aggregate sales price.
- Select cost basis type - Select 1099-B, Box 12 Cost Basis Reported to the IRS
- Cost - Enter the aggregate cost basis.
- Adjustments - Check the box next to M - Reporting Multiple Transactions on a Single Row.
When finished with the transaction, click Save & Enter Another if you have another capital gain or loss transaction to enter, otherwise click Continue.
To attach a PDF of the documentation showing the details of the transactions that have been aggregated, from the Federal Section of the tax return (Form 1040) select:
- Income
- Capital Gains and Losses
- PDF Attachments - either drag and drop the file from a Windows File Explorer window to the upload area, or click the upload area and navigate to the PDF.
- Attachment List - select this when finished attaching the PDF(s).
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