The revised paragraph in the 2005 Schedule D Instructions have caused a significant amount of confusion. Regrettably, AccountingWEB may have added to that confusion with an article published briefly here on Wednesday, implying that the reporting requirements for Schedule D and D-1 have changed. They have not.
Investors and traders are required to provide all of the information related to transactions resulting in capital gains or losses including a description of property, date
The revised paragraph reads “You must enter the details of each transaction on a separate line. If you have more than five transactions to report on line 1 or line 8, report the additional transactions on Schedule D-1. Use as many Schedules D-1 as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1. Do not enter “see attached” or summary totals from an attachment in lieu of reporting the details of each transaction directly on Schedule D or D-1.”
Transaction summaries are NOT acceptable. Neither is writing “details available upon request” on Schedule D. Statements prepared by brokerages are acceptable in lieu of Schedule D ONLY when they contain ALL the required information in a similar format.
More information on Schedule D can be found online at www.irs.gov/formspubs/article/0,,id=109875,00.html the clarification is the third item on the list.