What happens if I enter a summary of stock sales?
If you have a lot of stock sales listed on your Form 1099-B or consolidated 1099, you can enter the total sale proceeds, total cost basis, and whether or not the basis was reported to the IRS (Box 12 is checked).
If the basis was reported to the IRS, you don't have a wash sale, you don't have any adjustments, and the Ordinary checkbox in Box 2 is NOT checked, then you don't need to do anything else.
If the basis is not reported to the IRS, you didn't receive a Form 1099-B or consolidated 1099, you had a wash sale, or you need to make additional adjustments, you can still enter a summary of sales. But you'll need to send a summary statement to the IRS.
If you would need to prepare and send a summary statement to the IRS, it might be easier to enter each transaction as a single stock sale. Or if most of your transactions do not require a statement, you can enter them as a summary and enter the rest as single stock sales.
For example: Let's say you have 50 stock sales where 45 of them had the basis reported to the IRS (1099-B, Box 12 is checked) and those 45 sales didn't have any other adjustments. The remaining five sales did not have the basis reported to the IRS. In this case, you could enter the 45 sales as a summary and the remaining five sales as separate stock sales. This way you would not need to send a separate summary statement. Or you could enter the 50 sales as a single summary and send a separate summary statement for the 5 sales that didn't have the basis reported to the IRS.
If the basis was reported to the IRS, you don't have a wash sale, you don't have any adjustments, and the Ordinary checkbox in Box 2 is NOT checked, then you don't need to do anything else.
If the basis is not reported to the IRS, you didn't receive a Form 1099-B or consolidated 1099, you had a wash sale, or you need to make additional adjustments, you can still enter a summary of sales. But you'll need to send a summary statement to the IRS.
If you would need to prepare and send a summary statement to the IRS, it might be easier to enter each transaction as a single stock sale. Or if most of your transactions do not require a statement, you can enter them as a summary and enter the rest as single stock sales.
For example: Let's say you have 50 stock sales where 45 of them had the basis reported to the IRS (1099-B, Box 12 is checked) and those 45 sales didn't have any other adjustments. The remaining five sales did not have the basis reported to the IRS. In this case, you could enter the 45 sales as a summary and the remaining five sales as separate stock sales. This way you would not need to send a separate summary statement. Or you could enter the 50 sales as a single summary and send a separate summary statement for the 5 sales that didn't have the basis reported to the IRS.
