Ordinarily, the proceeds on your Sch. D should match your 1099B. Last year I shorted a stock which I did not cover before year-end. Thanks to advice from this board, I entered this as an "open short" on my Sch. D, which then reconciled with my 1099B. I did cover my short this year however, so I will be reporting the short trade on my 2000 taxes. Since the sales proceeds were reported on my 1999 1099B, my Sch. D sales amounts will total MORE than my 2000 1099B.

Do I need to attach a note explaining this, or it that only necessary when the Sch. D amount is less than the 1099B amount?

Thanks, just planning ahead.