Discussion:Schedule D and Statements

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Schedule D and Statements


Zig (talk|edits) said:

15 January 2006
Hi everybody

I need to file a schedule D, do I have to attach copies of my statements to my return or do I just have to use the information on them to fill out my schedule D. In which particular cases does the IRS require statements. Thank you.

Scot1 (talk|edits) said:

15 January 2006
See the instructions to Schedule D - IRS requires that all capital transactions be reported (in detail) on Schedules D and D-1. They don't want capital transactions reported in summary form - such as combining several transactions one one line and writing "see attached statement" or "details on file".

WesR (talk|edits) said:

16 January 2006
hi the irs has come out and stated they will accept "see attached statements" under the trader/investor rules, you just wont be able to e-file a paperless return

Captcook (talk|edits) said:

16 January 2006
Let's define "statements" here. A taxpayer is not required to attach statements he/she receives from a broker, which may actually be the question. The IRS has recently allowed the phrase "see attached statements" as opposed to "available upon request." If a taxpayer has numerous capital transactions throughout the year that will not fit on one page of the SchD, then an attached statement with this detail is OK. WesR is right about electronic filing, unless your tax preparer has approved software to do so, an attached statement cannot be sent electronically.

Kelly (talk|edits) said:

17 January 2006
For years, for clients with MANY transactions (ie wrap accts, large portfolios, etc) we have used the summary detail and identified the sales as LT or ST and by broker name, total sale amount, total cost from broker statements. Have always efiled. Has anyone else had a problem with this? Thks Kelly

Anuenue (talk|edits) said:

15 January 2006
I would only file a statement if the Sch D is for something very unusual. You do need to keep your documentation with your copy of the return in case any questions arise.

anuenue

Solomon (talk|edits) said:

15 January 2006
Schedule D instructions changed this year. No more attaching statements. Must list all transactions no matter how many D-1's are needed. Only way to avoid this is if the broker provides you with a statement comparable to a D-1. Then all items do not have to be listed and can use as description "see attached statement."

Kleine7 (talk|edits) said:

16 January 2006
I have always used an Excel SS set up in the same format and column headings as the Schedule D and I have not had one question from the IRS. The Excel SS is broken down by Short Term and Long Term Gains/Losses just like on Schedule D. I take the totals off the Excel SS insert "see attached schedule" and subit with the 1040. I have a day trader with normally over 150 transactions each year that I submitted for the past 8 years in this manner. The IRS has never changelleged this at all.

WesR (talk|edits) said:

16 January 2006
sch d instructions for 2005 have changed to note all transactions have to be reported but the irs has just come out stating the trader/investors instructions note you can "see attached statements" and not have to input every single transaction. but you cannot file a paperless return because the irs wants the statements.

DZCPA (talk|edits) said:

16 January 2006
Are you going to attach statements to an E file return as a PDF file?

WesR (talk|edits) said:

16 January 2006
we use the form 8853 to send in the attachments

WesR (talk|edits) said:

16 January 2006
sorry typo form 8453

Solomon (talk|edits) said:

16 January 2006
WesR - would appreciate where you read about attaching a statement rather than entering all transactions. Thanks. Can't seem to find it on IRS site.

Cheritax (talk|edits) said:

17 January 2006
Here is the link:

http://www.irs.gov/formspubs/article/0,,id=109875,00.html then scroll down to "Notice — Clarification of the 2005 Instructions for Schedule D (Form 1040)"

Solomon (talk|edits) said:

17 January 2006
Thanks Cheritax.

Dneuschwander (talk|edits) said:

19 January 2006
Suggest that you refer to this blog for reporting matters associated with either Sch D or Form 4797: http://greentrader.typepad.com/greentrader_weblog/

Mikelim (talk|edits) said:

12 February 2007
Lacerte has a feature (Data Conductor), where you can import transactions from Excel to the Schedule D. Unfortunately, you have to put it in a specific format that is not all that easy to understand.

I have my assistant summarize large Schedule D.'s into excel, and then we use the data conductor to import them.

If you search the Lacerte forums, someone has posted a very handy template that will allow you to convert the data into the proper form pretty easily.

To join in on this discussion, you must first log in.
Personal tools