New Tax Form 8949. Where to put long list of transactions?

Discussion in 'Taxes and Accounting' started by jackpearson, Feb 18, 2012.

  1. Up until this year, if your transactions exceeded the number of lines on a Schedule D, you could print everything out as a Schedule D-1 & reference that on the Schedule D.

    Now with the new Form 8949 where you list all your transactions, where do you list out all your transactions that exceed the number of lines on the printed Form 8949? There's no equivalent to Schedule D-1 that I see.
  2. bc1


    Any irs form continuation schedule just needs your name and SSN at the top one each page along with identifying it as continued from form xxxx, line xx. A page number doesn't hurt for multiple pages if you are using an excel spreadsheet or something. If you are going to fill up the available lines, then I probably wouldn't wouldn't split any up and just say see attached schedule/continuation sheets. You can call it schedule 1 to line xx, form 8949. Then put the total in of course.
  3. Here are my notes for an interview on 8949 that I am doing later today at the NYC Traders Expo.

    What's new this tax season? Form 8949 for securities transactions.

    1099-Bs from securities brokers will look different and be very challenging for many traders to decipher. Traders have a big job on their hands to comply with onerous new rules from the IRS on cost-basis reporting. Traders need to fill out a very complex new tax form 8949, which then feeds into Schedule D capital gains and losses._

    In the past, only proceeds on securities were reported on 1099-Bs and the IRS had no idea if the trader had gains or losses. Lots of taxpayers made errors or cheated the IRS. Conversely with futures, the 1099 shows net reportable trading gain or loss for the year. The new 1099 for securities reports 2011 purchases of stock and holding periods, short-term versus long-term. But, the 1099 still omits purchases before 2011, all options, and plenty of other items, too. Forex isn't even scheduled to be included in subsequent years. The rules phase-in further in 2013 and 2014.

    In the past, traders just needed to reconcile total proceeds on stock and net futures gains and losses. Starting with 2011 tax returns, traders must reconcile every securities transaction, a far bigger job. 1099-Bs go from reporting part of the big picture, to reporting some cost-basis information, but the 1099-B still falls far short of the complete Schedule D. All that is missing must be explained on Form 8349 by the taxpayer. Many traders will resent this distrust from the IRS and being compelled to be an accountant.

    Unless traders use our TradeLog software, which just released a new version with 8949 - that our CPAs worked closely on - traders and their accountants will struggle with form 8949.

    PS. We covered this topic in our Webinar on Feb 2 and showed you how to fill out 8949 and the related challenges. Free recording on our site Webinar page. I don't post links to our site, since not a sponsor. We covered 8949 on our blog too.