There are five rows on each 1040 Schedule D to report short term capital gains and losses. Do I have to use ten of the forms to report near 50 transactions? or is there any other form (or composed by myself) to report more transactions on one page?
Thank you,
-Kevin
Schedule D states "Use Schedule D-1 to list additional transactions for line 1 and 8." Alternately, a check box permits you to choose, "check if attaching statement(s) with stock transaction details instead of entering each one separately."
Tax software will create the D-1 as it sees you enter that many transactions.
JOE
"Kevin" wrote
Yup. There's a schedule page called "D-1". It's an overflow page which attaches to Schedule D. If you use software, it should form automatically.
There is a continuation form Schedule D1 with space for about 50 short term (on page 1), and 50 long term (on page 2).
If you have more transactions, I'm guessing that it is also OK to spit out an Excel spreadsheet (or HTML table) with the same column headings as Schedule D/D1 -- say your 150 short term gains, and then your 60 long term gains.
Also, I had over 80 short term gains and losses from currency trades and summarized them on one line as such "80 trades at forex.com", cost basis "0", sale price "-700.00". forex.com does not have records of the cost basis of my trades; they only have the net gain/loss. Anyway, I don't think this is the correct approach, but the net gain/ loss is correct.
They don't but you do (or should). It's your responsibility, not your broker's, to track the cost basis of your trades.
You're right, it's not the correct approach. The correct approach is to list each sale individually (i.e. if you have multiple purchases that were sold in a single sale, you only have to have one line).
-- Rich Carreiro snipped-for-privacy@rlcarr.com
Of course there could be wash sales incorrectly being reported.
And if you need to use a 2210 AI the figures may be wrong.
The IRS allows lumping several opening transactions into a single closing transaction. And if several closing transactions occur the same day you can generally lump that as one transaction.
But what you are doing is not what the IRS asks you to do.
If they're futures trades, the cost basis for each trade is 0 (well, the commission to enter it).
Seth
I've had a lot of reconciliation to the gross proceeds problems with this kind of heavy activity.
The IRS seems to be getting the open short sales as gross proceeds in one year and the covering position in another adding to the confusion.
They also don't seem to be using the attachments consistently so followup letters are coming.
Noel Nichols Chenango business Services
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