DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Valued Pioneer
Posts: 3
Registered: ‎01-21-2018
Accepted Solution

Import from brokerage

I'm attempting to import a large (210 pages!) consolidated 1099 form from TD Ameritrade.  The import process is running but is taking a long time, which I expected.  What I don't know is how long this SHOULD take / if the process is stalled.

 

I know how to do this and have successfully imported a shorter form from a different account so I know the import process works.

 

Is there any way to predict how long this should take or tell if the process is still working?

Valued Pioneer
Posts: 3
Registered: ‎01-21-2018

Re: Import from brokerage

More information - I let the import process run while I was away from the computer for several hours and returned to find the following message:

 

"Smart Import failed because there was not enough space to hold all the entries. You will have to enter your data manually."

 

If there isn't a workaround for this, this will be a nightmare.  I don't know how many transactions I had last year but it's several hundred at a minimum, most of which are multi-leg options trades.  Manually entering this data will take days.  Any suggestions (other than giving up on the idea of doing my taxes myself and paying someone to do them for me)?

 

Thanks in advance.

Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: Import from brokerage

Hello docbasset,

 

Welcome to H&R Block Community.

 

According to the tax rules, stock sale transactions are reported on Schedule D and Form 8949. On the instructions for Form 8949, it says, "Exceptions to reporting each transaction on a separate row.  There are exceptions to the rule that you must report each of your transactions on a separate row of Part I or Part II."  In other words, instead of reporting each stock transaction from your 1099-B individually, you can enter them as a group sale. A group sale involves entering a combined entry of different sales that are reported on your 1099-B form. The tax rules continue to state that if going to do a group sale on these stock transactions, you can't make a group sale entry that contains both long-term and short-term transactions as a combined entry on the tax return.  Furthermore, the tax rules requires that the short-term and long-term transactions must be reported separately on the tax return. Therefore, there needs to be a separate group sale entry for any set of the stock transactions that are long-term (those purchased and held for more than one year before it was sold) and another separate group sale entry for those that are short-term (those purchased and held less than one year before it was sold). 

 

After selecting the "group sale" option in the tax program, you will see another screen where you enter the description of a group sale for a particular set of stock that was sold in 2017, the total sale proceeds, total cost basis, and the type of gain or loss in stating that this group sale is either long-term or short-term. Furthermore, in making this group sale entry, in the "Sale proceeds" box, enter the grand total for how much this entire set of a particular stock was sold in 2017, and in the "Cost basis" box, enter the grand total of how much this particular set of stock was purchased.  Do this group sale entry for any set of short-term and long-term stock transactions that are shown on your 1099-B.  Doing this method may take some time, but it should help expedite the data entry process of not having to enter each transaction off of the Form 1099-B individually.

 

Also, if you are trying to import these stock transactions in the H&R Block online product, try the import feature on a different computer or internet browser and see if that could help in importing the Form 1099-B data from your broker. If you are using the H&R Block desktop / downloadable software, try the import feature on a different computer.  If you have any questions in regards to the functionality of the import feature, you can contact customer support at 1-800-HRBLOCK.

 

If this continues to be an issue for you and you happened to be using the H&R Block online product, you can use the Tax Pro Review feature in having an online tax professional to review your return and provide assistance in getting certain forms and schedules to be completed on your return.  Otherwise, if you continue to have this issue while using the H&R Block desktop / downloadable software, then the you can seek a local H&R Block office in getting the return filed there.

 

If you have any other questions, I'll be glad to help you.

 

Lawrence,
Tax Research Specialist

Valued Pioneer
Posts: 3
Registered: ‎01-21-2018

Re: Import from brokerage

Lawrence,

 

Thank you very much, your answer might be exactly what I was looking for.  I do have a couple follow-up questions:

 

1)  I assume that I can group stock options transactions in the same way (long term vs. short term) as well as stock transactions.  Correct?

2)  I have multiple 1099 forms for different accounts / brokerage firms.  If I group the transactions, do I group all transactions across accounts / brokerages or would I have several group entries (long term holdings in account A, short term holdings in account A, long term holdings in account B, etc.)?

3)  Could I still enter some individual transactions (some of the accounts have a small enough number of transactions that the import function works just fine)?  I'd rather leave the imported data alone so as not to introduce the risk of a data entry error.

4)  If the answer to question 3 is "YES," does it really matter how things are entered in the program as long as the Schedule D / Form 8949 in my return match what was reported to the IRS by my brokerage firms?

 

Thanks again for taking the time to answer my initial question and thanks in advance for any additional information you can provide!

Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: Import from brokerage

Hello docbasset,

 

To answer your questions:

 

1) You should be able to group sale stock option transactions in the same way (long-term vs short-term) as you would for regular stock transactions in the tax program.

 

2) The way the tax program is designed is that you can only make group entries within one brokerage account at a time. In the H&R Block tax program, in the first screen of "1099-B Sale of Stocks, bonds...", it asks you to enter name of the brokerage or financial institution that gave you that Form 1099-B.   Then, in the next screen, it asks for all the sales made inside that brokerage account. So, there is no grouping of all the stock transactions across multiple brokerage accounts all at once. In other words, you can only enter group sales for long-term holdings for Financial Institution A and then enter a set of group sales for short-term holdings for Financial Institution A. Next, you enter group sales for long-term holdings for Financial Institution B and enter another set of group sales for short-term holdings for Financial Institution B, etc.

 

3) You should be able to still enter some individual transactions as its own individual entry in the tax program while making group sale entries for others.

 

4) As long your Form 8949 and Schedule D matches what was reported to the IRS by your brokerage firms, you can make the entries in any way that makes it clear that you have entered group sale transactions and individually separate transactions.

 

If you have any other questions, I'll be glad to help.

 

Lawrence,
Tax Research Specialist

Pioneer
Posts: 1
Registered: ‎02-17-2018

Re: Import from brokerage

I would like to group my sales but some of the groups contain wash sales. If I enter trades individually, there is a field in the program for wash sale amount, but as a group there is no such field. Do I have to enter any wash sales as individual trades instead of groups?

Highlighted
Valued Pioneer
Posts: 3
Registered: ‎05-03-2018

Re: Import from brokerage

If you have wash sales or any other adjustments to basis or important comments on the basis (e.g. this transaction was a return on capital, not a "sale") for a given transaction, then that transaction has to be excluded from the "group" total and reported on a separate line in the Form 8949 within the correct IRS Code category for Schedule D (i.e. Code A for short term transactions that have been reported to IRS, or Code D for Long Term transactions that have been reported to IRS, or Code E for Long Term that have not been reported to IRS  etc. )  

 

I imported 780 transactions for 2018 from my Betterment robo-advisor account into the TaxCut software running on my PC and it took nearly five minutes to complete.  Because they were not "grouped", I just had to find the lines where adjustments for wash sales were necessary and make the entry into the program.   When "grouped", one has to do the math to subtract the adjusted items from the total for the numbers reported for the group.  

 

A lot of his pain-in-the-tusch stuff is a function of the crazy IRS request for details on every transaction, not the TaxCut software, although the TaxCut business software does not support any form of data import for 1099-B data at all, so the manual "grouping" approach is all one can do.  

 

The thing that IRS computers will check is that the total "Proceeds" from all distributions (Sales of securities, and Return of Capital transactions) match what the total "Proceeds" number is (within rounding error) on your financial institution's 1099-B.