Form 8949: Can I consolidate multiple trades of the same asset into one line?

So I had a ton of stock trades last year and my tax advisor told me something that would save me from printing a novel for my tax return. He said that instead of listing every single trade separately on Form 8949 (which would be like 100+ pages in my case), I could just consolidate all transactions for each unique stock/asset into one single line on the form. For example, instead of listing 25 separate trades of Apple stock, I could just have one line that shows the total proceeds, cost basis, and gain/loss for all Apple transactions combined. This sounds way more reasonable than submitting a small forest of paper to the IRS, but I want to double check this advice before I file. My advisor seemed confident and mentioned that if the IRS has questions, they'd contact me and I could provide the detailed transaction records at that time. Has anyone done this before? Is this legit or am I asking for trouble?

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20 comments

Amina Toure

•8M

Yes, consolidating trades of the same asset on Form 8949 is generally acceptable. The IRS actually prefers this approach to reduce paperwork! You'll need to maintain detailed records of each individual transaction in case of an audit, but for filing purposes, you can absolutely consolidate trades of identical assets. What you'll need to do is group all transactions of the same security with the same acquisition date and same tax treatment (short-term vs long-term). Add up the proceeds, cost basis, and adjustments for each group and report these totals on Form 8949. Make sure to check the box at the top of the form that indicates the transactions are being reported on a summary basis. If you're using tax software, most programs have an option to consolidate similar transactions automatically, which makes this process much easier.

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Amina Toure

•8M

You're right to point out that distinction. Technically, transactions should be grouped by both security name AND acquisition date. However, the IRS has shown some flexibility on this. For identical securities with different acquisition dates, you should separate them into short-term and long-term categories at minimum. Many tax pros do further consolidate all trades of the same security within each of those categories (all short-term Apple trades on one line, all long-term Apple trades on another line). The most important thing is maintaining detailed records of every individual transaction in case the IRS requests them. As long as you have that documentation and you're accurately reporting total proceeds and cost basis, you're typically on solid ground.

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CosmicCommander

•8M

I've been using taxr.ai (https://taxr.ai) for this exact situation last year. I had over 200 crypto transactions that would have been a nightmare to manually enter. Their system automatically consolidated my trades while keeping all the detailed records attached to my return. Saved me hours of work and the anxiety of wondering if I was doing it right. The tool actually explained which trades could be consolidated and which ones couldn't (like wash sales that need special treatment). It even flags situations where consolidation might trigger IRS scrutiny so you can decide if you want to be more detailed in those cases.

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CosmicCommander

•8M

It handles different holding periods by separating short-term and long-term gains automatically. In your Tesla example, it would create two consolidated entries - one for all short-term holdings and one for long-term (if applicable). This follows IRS guidance while still reducing the paperwork. For brokerage imports, that's actually one of its best features. It accepts files from almost every major brokerage and crypto exchange, even when the formatting is inconsistent. I had files from three different platforms and it normalized all the data. You can also manually adjust anything that doesn't import correctly.

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Javier Torres

•8M

Just wanted to update - I tried taxr.ai after seeing it mentioned here and it worked perfectly for my situation. I had around 150 stock trades from last year and it automatically consolidated everything correctly while preserving all the necessary distinctions between short and long term holdings. The best part was that it created a summary sheet for my actual tax filing but kept all the detailed individual transactions in a separate file I can provide if ever audited. My tax preparer was impressed with how organized everything was! Definitely using this again next year.

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Emma Davis

•8M

If you're having trouble getting clear info from the IRS about Form 8949 consolidation rules, try Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in under 15 minutes when I was completely stuck on this same issue. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was on hold with the IRS for HOURS before giving up and trying this. The agent I spoke with confirmed that consolidation is acceptable as long as you maintain detailed records and separate short vs long term gains. They even emailed me the specific IRS guidance document about it!

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Emma Davis

•8M

It works by using a combination of technology and timing. They have a system that continually redials and navigates the IRS phone tree until it gets through, then it calls you to connect. It basically does all the waiting for you. The reason it works is that they have data on the best times to call different IRS departments and optimize accordingly. There's no special "inside connection" - they're just using technology to solve the hold time problem. I was skeptical too but was desperate after waiting hours on multiple days. The relief of actually talking to someone who could answer my question was totally worth it.

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Isabella Ferreira

•8M

I have to eat my words here. After my skeptical comment, I decided to try Claimyr because I had another Form 8949 question about wash sales that was making me crazy. Got connected to an IRS tax specialist in about 20 minutes. The agent confirmed exactly what others here have said - consolidation is fine as long as you separate by short/long term and keep your detailed records available. She also explained how to properly note on the form that it's consolidated data (there's a specific code to use). For anyone wondering - the whole experience was surprisingly smooth. Never thought I'd say that about dealing with the IRS!

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Ravi Sharma

•8M

I've been a tax preparer for 10 years and want to add some nuance here. Yes, consolidation on Form 8949 is acceptable, but there are some important exceptions: 1) Wash sales MUST be reported separately and cannot be consolidated 2) Transactions with different tax rates (collectibles, section 1202 gains, etc.) need separate reporting 3) If you received substitute 1099-Bs with basis not reported to the IRS, those typically need separate reporting For typical stock trades though, consolidation is perfectly fine. Just make sure you check box C at the top of Form 8949 to indicate you're using summary information.

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Ravi Sharma

•8M

You should write "Various" in the acquisition date column when consolidating trades on Form 8949. This clearly indicates to the IRS that the line represents multiple transactions with different purchase dates. Never leave the field blank as that could trigger unnecessary scrutiny. Also, make sure you're still separating your short-term and long-term transactions appropriately on the correct pages of Form 8949. Each consolidated line should only include transactions that fall into the same holding period category.

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Andre Laurent

•2M

This is great advice from everyone here. I just want to add one more thing that caught me off guard last year - make sure your broker statements match what you're reporting on Form 8949 even when consolidating. I consolidated all my Microsoft trades into one line, but my broker's 1099-B showed each trade separately. When I filed, the IRS computer flagged the discrepancy because their automated system couldn't match my consolidated reporting to the individual 1099-Bs they received from my broker. It wasn't a big deal - just had to mail in a reconciliation statement explaining the consolidation - but it delayed my refund by about 6 weeks. So heads up that even though consolidation is allowed, it might trigger some additional correspondence with the IRS if your broker reports differ significantly from your filing format. Still totally worth doing consolidation though! Just be prepared for potential follow-up questions.

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Noah Irving

•2M

That's a really important point about the broker statement discrepancies! I hadn't thought about how the IRS automated matching system would handle consolidated vs. individual reporting. Six weeks is a long delay but glad it worked out in the end. Quick question - when you sent that reconciliation statement, did you just include a simple explanation letter or did you have to provide all the detailed individual transaction records too? I'm trying to figure out what level of documentation to keep ready just in case.

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