8949 Question

Home Fairmark Forum Taxation of Investments 8949 Question

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  • #7346
    Vlad
    Participant

    Would really appreciate advice on the problem I’m having. I have about a hundred of transactions with cost basis reported to IRS, but one of them has a 1G Wash Amount Adjusted, so I’m forced to attach a statement. I’m filing thru FreeTAxUsa, which doesn’t offer the option to upload transactions electronically. If I want to avoid mailing the transactions, can I just pull out that one adjusted transaction and list it separately on form 8949? I deducted this single transaction from the rest of the summary, so the total tax is still the same.

    Thanks so much for any advice.

    #7357
    kaneohe
    Participant

    Don’t know the real answer but I’d be inclined to do the same.

    #7362
    Vlad
    Participant

    Thanks for your reply kaneohe.

    I just called IRS hotline, waited an hour for their Schedule D expert. When I explained my question, she said they’re not allowed to discuss Wash sales. When I asked about all types of adjustments for 1099-B where Basis is reported, whether those with adjustments can be isolated on 8949 from the rest of the summary, thus avoiding having to mail it in. She insisted that all types of transactions, even if there are no adjustments, must be mailed. Perhaps she misunderstood me, I asked her about stock and option transactions, but she kept referring to “Disposition of capital assets”. It was my understanding that IRS changed this law a few years ago, where you no longer have to mail in a statement for which Basis is reported and there are no adjustment, but she insisted that’s not the case.

    #7365
    kaneohe
    Participant

    Apparently IRS wants the transactions electronically. I’m assuming cost basis was reported to IRS? Perhaps call your broker and ask if they report to IRS electronically or on paper. Might still be inclined to do as you thought and let IRS ask for them if they are that interested.

    #7370
    Vlad
    Participant

    I called IRS again, this time a different rep confirmed that what I’m doing is correct. I don’t need to send any attachments to them, electronically or by mail, as long as the transactions that have an adjustment are listed on 8949. So that’s how I will file taxes going forward, hopefully that won’t increase the chance of an audit.

    Interestingly, he said that IRS actually gets each transaction on 1099-B reported to them, not just the totals. Makes me wonder why we even need to include Wash sale adjustment for each transaction on 8949. IRS will already have the wash sale amount since my broker reported it on 1099-B.

    #7371
    kaneohe
    Participant

    Good persistence/patience w/IRS. Thanks for feedback. Will have a wash sale reported for 2020 so will use your newly confirmed wisdom.

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