Tax Slayer entry:
Federal Section > Income > Capital Gain and Losses (Schedule D) > Capital Gains and Loss Items
- [TSQuestion] Beginning with Tax Year 2013 purchases, if all 1099-B transactions on a broker statement or on individual 1099-B’s are “covered” (basis reported to the IRS) and there are no adjustments, the amount can be entered directly on TWO Sch D and the broker statement does not need to be attached. If there are multiple such entries, link to a scratch pad to total them.
- For broker statements that provide a summary of all 1099-B transactions:
- enter the Broker name and the summary data with separate line entries for each of short/long term and covered/non-covered transactions.
- Select the “Reporting Multiple Transactions on a Single Row” adjustment with 0 as the adjustment amount. If an adjustment is needed, select the appropriate reason as well.
- Then, attach a copy of the broker statement showing the detailed transactions (scanned PDF attachment: Federal Section > Income > Capital Gain and Losses (Schedule D) > PDF Attachments or mailed using Form 8453).
- All capital gains results from Schedule D will appear on Form 1040 line 13 – Capital gain (or loss)
- If Federal income tax is withheld, create a 1099-MISC with the withholding amount entered.
- A Noncovered security is one in which the basis is not required to be reported to the IRS.
- Even if the Basis is shown on the statement and Non-covered security is indicated in Box 5, enter the data as a Non-covered security
- If the reported amount is “Gross”, be sure to show any broker fees as an adjustment.
- [TSQuestion] If state tax was withheld, the return will have to be paper filed for Colorado to recognize that withholding.
- Add the additional withholding to the calculated withholding on the state return (Federal Section > Payments & Estimates > Other State Withholdings TS page).