Form 4797 for stock trades

Discussion in 'Taxes and Accounting' started by listedguru, Apr 21, 2021.

  1. I am curious how the traders here who report their trades on Form 4797 generate that form? Are you listing (and matching up) every buy and sell order and then putting them on form 4797? If so how do you accomplish this match up process?

    Thanks,

    -Guru
     
  2. BKR88

    BKR88

    At the end of the year your broker will total up all transactions for the year.
    Just report the totals, not each transaction.
    Under description, date of purchase & date of sale, record "various".
     
    gkishot likes this.
  3. I've seen others mention that they just report the totals. I have always listed each trade (matched up buy and sell) on from 4797 as I am a mark to market trader. Previously I had a company that would match up all the trades for me and generate a trade by trade form 4797. Unfortunately the company is no longer providing that service:(

    I don't want to draw the attention of the IRS at this point as I have always listed all my trades in the past. Not sure if they would question it if I did just summary from now on.

    I believe the IRS instructions for mark to market traders still indicate that you should list all trades individually on form 4797.
     
  4. BKR88

    BKR88

    You should use Form 8949, not 4797.
    4797 is for the Sale of Property.
    8949 is for Sale of Capital Assets.
    IRS already has the information from the broker so you're not hiding anything.

    ***Sample from internet. Easier to put totals but can put individual trades if not too many.
    8949.png
     
    Last edited: Apr 21, 2021
  5. Read under the section titled mark to market. It talks about reporting your trades on part II of form 4797 which is what I have done for years. My original question was how to match those trades up for reporting or are traders just summarizing on form 4797 now?

    https://www.irs.gov/taxtopics/tc429
     
  6. Girija

    Girija

    4797 is for a property sale in business context. Both forms are valid depending on how you file.