Active Traders Who Use TurboTax Desktop Edition
Active traders who use Intuit TurboTax face some special challenges. Below is an explanation.
TurboTax Import Limits
TurboTax desktop edition cannot import more than ~ 2,100 broker transactions.
And many users report that the desktop edition of TurboTax will become sluggish and virtually unusable if you import more than 1,000 transactions.
If you have more than the above numbers, you need to work around the limitation by:
- entering or importing "summary transactions" into the program and
- attaching statements containing detailed transaction information.
Work-Around Part 1: Getting Your Total Gain or Loss Amounts into Form 1040 Schedule D
Enter Total Gain or Loss Data
If you have more transactions than can be imported, this Turbo Tax support page describes how you can you can "enter a summary for each sales category".
However, if the total sales volume for a category is $10,000,000 or more, you cannot enter the total. Consider working around this by entering only the total gain or loss amount. If gain, enter the gain as sales price with cost of zero. If loss, enter the loss as cost (as positive number) with sales price of zero.
Import Total Gain or Loss Data
Using our app, you can import the "summary of each sales category" into TurboTax — even if the total sales volume for each category is more than $10,000,000. Instructions for doing so are shown in the app.
Work-Around Part 2: Attaching Required Statements
Our app will generate for you the required PDF statements showing your transaction details. These statements are intended to be attached to your tax return. Instructions for downloading these statements are shown in the app.
- Inspect the Schedule D generated by TurboTax to make sure it has the same totals as the Schedule D generated by Form8949.com.
- Remove the Schedule D and Forms 8949 generated by TurboTax.
- Replace them with the Schedule D and Forms 8949 (and Form 8949 Statements, if applicable) generated by Form8949.com. These can be downloaded from the Download Results page in the app.
Electronic Filing - Electronic Attachment of Statements
Unfortunately, TurboTax Desktop Edition does not support PDF attachments to E-Filed returns.
Electronic Filing - Mail IRS Form 8453 and Statements
To comply with IRS requirements, you would need to print and mail the statements showing your transaction details using IRS Form 8453 as cover sheet.
Note: This can sometimes require literally reams of paper.