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Also, as I said before and which was my intended subject, the new IRS wash sale accounting can't be based on an accounting of transaction confirmations or on monthly statements but must be based on the 1099-B .
That's because the new 1099-B doesn't adjust the basis of the wash position but leaves that to the Form 8949 . However, the 1099-B does adjust the basis of the later position to correct for the wash sale adjustment .
I might as well keep going on this Form 8949 subject.
If there are any wash sales listed on the 1099-B then just input the 1099-B into the IRS 8949 pdf that can be saved. The reason for this is that while the wash sale is noted on the 1099-B and then the adjustment performed on the Form 8949, a future correction of the wash sale is not noted on the 1099-B but simply the cost basis is adjusted without note.
(I did send the IRS a comment E-Mail and asked them to change the Form 8949 such that all cost basis adjustments would be performed on the form.)
A couple of techniques to make input into pdf 8949 easier would be copy and paste of dates and input of numbers without commas so that the keyboard number pad can be used.
Then the month-by-month accounting that is based on brokerage statements or on transaction confirmations is only used as a partial checking of the tax accounting.
Now if there are no wash sales on the 1099-B then the user might want a KBH Supp App that would output the month-by-month (or transaction-confirmation-by-transaction-confirmation) accounting in a form similar to 8949 so that the user could make their own forms. And okay, I can add that in a week or two. But if the user does make their own 8949 just note that it has to include the check-boxes.
If the user files with Form 4797 then this new Form 8949 doesn't apply.
Well, there have been so many changes to the Schedule D and Form 8949 that the previous posts on the subject are now out-of-date.
Here's my most recent experience:
Forms 1099 and 8949 .
I'm sure everyone is up to date on the new 1099 and 8949 forms. Well, the very first year of a form 8949 caught me by surprise and I missed the public comment period.
Now this year, I don't see same day wash sales that previously just resulted from selling a total holding with one limit order.
But this year, security transactions that have the basis reported and that don't have adjustments can just be totaled directly on the Schedule D and are not required to be reported on the form 8949. So that makes it double easy ?
Well, here are two notes based on my experience with tax year 2014 1099 composite forms:
An options assignment where the underlying security is called away at the option strike price, has the option premium that was received just added to the security proceeds. So that's easy as well except that there is no note, no code, and no adjustment amount. The whole operation is done for the investor on the 1099 but the investor doesn't know that its been done. But I assume that the (reported) transaction doesn't go on a form 8949 because there is no adjustment amount listed. (There was a "Net Proceeds" note.)
And then a non-dividend-distribution adjusts the basis of a security position. Also, easy, but there is no note, no code, and no adjustment amount. The operation is done for the investor on the 1099 but the investor doesn't know that its been done. And I assume that this (reported) transaction doesn't go on a form 8949 because there is no adjustment amount listed. (There was a footnote that said that a basis might have a return-of-capital adjustment.)
Now certain securities, such as ticker GLD, are not fully reported and therefor must go on a form 8949. And so there may be some investors who have hundreds or thousands of transactions like this.
But this year I used the supplemental application for making a Form 4797 output and I used the output just as a means of checking the Schedule D.
This is not really a income tax board except that a personal finance software can help with taxes.
But I am a REIT investor.
A REIT doesn't pay tax and does pay out at least 90% of earnings. A REIT might pay out more than 100% of earnings since there is a difference between earnings and funds-from-operations. The REIT might consider earnings to contain un-necessary charges since, for example, the REIT renovates property that is said to be depreciating. Of course depreciation is a non-cash charge.
Now a REIT dividend is not a qualified dividend but if the REIT gains in value while also paying a dividend then the investor will not mind.
REIT's might be currently risky with interest rates going up.
Well, this can be an activity post and so here is a link to KBH Investor Accounting: