No Cost Basis Data Downloaded ?
When downloading directly from the broker to tax preparation software, sometimes only the sales proceeds data is provided, leaving manual entry of cost basis information for the taxpayer.

The universal TXF format should be used to guarantee successful import of trade data to tax preparation software. Most brokers provide the capability for downloading transactions of stocks and options into XLSX or CSV spreadsheet format.

Schedule D Tax Tool can then generate the TXF file used for import into tax preparation software.

Notes
You may wonder why some brokers only provide sales proceeds information for direct import to tax preparation software, but include all trade data for XLSX download. One possibility may be that the broker is simply being consistent with the data provided to the IRS. The 1099-B which the broker is required to send to the IRS does not include matched up trades, only the sales proceeds data.

Tax preparation software does not match up trades either. The only way for direct import to work properly, is for the broker to provide matched up trades to the tax preparation software.

Brokers are required now to provide cost basis data for certain covered securities, mostly stocks at this point. In subsequent years, the types of covered securities will expand to include options and other capital assets.
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