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Subject:  Re: federal income tax questions Date:  3/2/2021  9:58 PM
Author:  ptheland Number:  132135 of 132640

I have many many trades. Do i have to include the the worksheet 8949 from the brokerage for all trades with my income tax form?

Maybe. Maybe not.

Take a look at line 1a and 8a of schedule D. If you meet the qualifications for either one of those lines (all of the transactions reported on 1099-B have basis reported AND no adjustments are needed) you don't need to use Form 8949 for those transactions. The big catch for someone with lots of trades is wash sales. If you have wash sales, you can't use this shortcut.

The next best thing is in the instructions for Form 8949, page 3 under Exception 2. The gist is that you can attach a separate statement that includes the same information as Form 8949. Many times, the broker's supplementary additional information will provide what you need. In particular, Interactive Brokers provides a facsimile Form 8949 which makes a perfectly good supplementary statement. Or your broker may allow you to download your sale information into a spreadsheet. If that has everything you need to report, you can use that.

Using this exception, you can electronically file if your software allows you to attach a PDF of the information. Alternatively, you can attach the supplementary information to Form 8453 and mail that after electronically filing.

The ideal situation is to download the details from your broker into your software and just complete the 8949 that way - in all of its gory detail.

I'd encourage you to read the instructions to 8949 and schedule D for these situations.

8949 instructions:

Schedule D instructions:

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