Form 1099-B - Aggregating Multiple Stock Transactions

Form 1099-B - Aggregating Multiple Stock Transactions

Brokerage firms are required to report stock transactions on Form 1099-B. While the brokerage information may contain multiple transactions, they don't necessarily need to be individually entered but can be aggregated on the tax return.

You can aggregate short-term transactions and long-term transactions if they meet the following criteria:

  • Form 1099-B Boxes 1f and 1g are blank;
  • Form 1099-B Box 2 "Ordinary" check box isn't checked;
  • Form 1099-B Box 3 "QOF" check box isn't checked;
  • Form 1099-B Box 12 shows basis reported to the IRS;
  • The taxpayer isn't electing to defer income due to investing in a QOF, nor terminating deferral from a QOF investment;
  • There are no other adjustments needed to the basis or to the gain or loss;
  • The type of gain or loss (short-term, long-term, or ordinary) isn't being changed.

Transactions that can't be aggregated will need to be entered individually. A PDF copy of the brokerage statement(s) will need to be attached to the return if any aggregate entries are made.

Pro tip: If you're scanning a large brokerage statement to PDF for e-file purposes, to keep its size low scan in black and white (rather than color or grayscale) and use a resolution no higher than 300 dpi.

To aggregate transactions in Software, from the Federal Section of the tax return (Form 1040) select:

  • Income
  • Capital Gains and Losses
  • Capital Gains and Loss Items
  • + Add a Capital Gains Transaction - For a MFJ return, select if for the taxpayer, the spouse, or both.
  • Description of Property - Enter a description, e.g., 1099-B ST (for short-term).
  • Date Acquired - Select Alternate Option, then either Various - Short Term or Various - Long Term as appropriate.
  • Date Sold - Enter the last day of the tax year.
  • Sales Price - Enter the aggregate sales price.
    • Select cost basis type - Select 1099-B, Box 12 Cost Basis Reported to the IRS
  • Cost - Enter the aggregate cost basis.
  • Adjustments - Check the box next to M - Reporting Multiple Transactions on a Single Row.

When finished with the transaction, click Save & Enter Another if you have another capital gain or loss transaction to enter, otherwise click Continue.

To attach a PDF of the documentation showing the details of the transactions that have been aggregated, from the Federal Section of the tax return (Form 1040) select:

  • Income
  • Capital Gains and Losses
  • PDF Attachments - either drag and drop the file from a Windows File Explorer window to the upload area, or click the upload area and navigate to the PDF.
  • Attachment List - select this when finished attaching the PDF(s).