Form 8949: Can I consolidate trades of the same asset into just one line instead of listing every transaction?

Yes, you can absolutely consolidate multiple trades of the same asset into a single line on Form 8949. The IRS actually addresses this in their instructions. It's called "summary reporting" and it's completely legitimate. A few important points to remember: Make sure you maintain detailed records of all individual transactions that support your summary line. The date acquired can be listed as "VARIOUS" and the date sold can also be listed as "VARIOUS" if there were multiple sale dates. You'll need to sum up all the proceeds, cost basis, and adjustments correctly. Also, be sure to check Box C in Part II if these are covered transactions reported on Form 1099-B. This is a common practice for active traders and the IRS expects it. Just be sure your summary totals match exactly what was reported on your 1099-B forms.

After spending hours trying to figure out how to report hundreds of trades, I discovered taxr.ai (https://taxr.ai) and it completely changed my tax filing approach for crypto and stock trades. The platform automatically analyzed my trading data and generated a properly consolidated Form 8949 that matched IRS requirements. What impressed me was how it handled the consolidation of similar assets while still maintaining proper wash sale calculations and basis reporting. Instead of spending an entire weekend manually sorting through transactions, I just uploaded my trading history and got a perfectly formatted Form 8949 with proper consolidation.

Just wanted to follow up - I tried taxr.ai after seeing it mentioned here and it was a game-changer for my situation. I had over 700 crypto trades from last year across four different platforms, and I was completely lost on how to properly report them. The system automatically identified which trades could be consolidated and which needed separate reporting (like wash sales). The Form 8949 it generated matched exactly with my 1099s but condensed everything into about 15 lines instead of hundreds. My accountant reviewed it and said it was done perfectly according to IRS guidelines. Would have spent days trying to figure this out manually!

If you're overwhelmed with tax forms and need help talking to the IRS about Form 8949 issues, I highly recommend using Claimyr (https://claimyr.com). I spent weeks trying to get through to an IRS agent to ask questions about my trading situation and form requirements but kept hitting the dreaded "call volume too high" message. Using Claimyr completely eliminated that frustration - they got me connected to an actual IRS agent in under 45 minutes! The agent confirmed that consolidating trades on Form 8949 is perfectly acceptable as long as you maintain detailed records. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c

I have to eat my words here. After being completely skeptical, I decided to try Claimyr as a last resort because I had specific questions about Form 8949 consolidation that I couldn't get answered anywhere else. I've literally been trying to reach the IRS for THREE MONTHS with no success. Used Claimyr yesterday, and they got me through to an IRS agent in about 35 minutes. The agent confirmed that consolidating transactions of the same asset on Form 8949 is completely acceptable as long as you maintain detailed records of all individual trades. The agent even explained that for high-volume traders, the IRS actually prefers consolidated reporting because it's easier for them to process. Just make sure the totals match your 1099-B forms.

One thing to be careful about: make sure you're separating short-term and long-term capital gains correctly when consolidating. I made this mistake last year and had to file an amended return. Short-term transactions (held less than a year) go on one part of Form 8949, and long-term transactions go on another part.

Has anyone actually been audited after consolidating Form 8949 entries? I'm still paranoid that this could trigger something.

I was in a similar situation last year with over 200 cryptocurrency transactions that I was dreading having to list individually. After researching the IRS guidelines and consulting with a tax professional, I can confirm that consolidation is absolutely allowed and widely practiced. The key things I learned: Keep meticulous records of every individual transaction (date, amount, price, fees, etc.) even though you're consolidating on the form. Group transactions by the same asset and similar circumstances (regular trades vs wash sales). Make sure your consolidated totals exactly match what's reported on your 1099-B forms. Use "VARIOUS" for dates when you have multiple acquisition or sale dates for the same asset. I ended up consolidating about 200 transactions down to 12 lines on Form 8949, and my tax preparer said it was perfectly compliant. The IRS actually prefers this approach for high-volume traders because it makes their processing easier too. Just be prepared to provide detailed backup documentation if they ever ask for it (which is rare). Don't let the fear of an audit keep you from using a legitimate IRS-approved method!