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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

Is there a limit to the number of Schedule D transactions for electronically filed returns?

Answer

The limit of Schedule D transactions for electronic filing is 5,000 short-term transactions and 5,000 long-term transactions. Large indirect state returns may be rejected due to the limit of allowed state records (25). For such returns, the federal return can be electronically filed if you suppress electronic filing for the attached indirect states and file the state returns on paper. Alternatively, an acceptable substitute to Form 8949, Sales and Other Dispositions of Capital Assets may be attached to Form 8453 in lieu of reporting each transaction separately in the statement dialog for the Schedule for detail field in Screen B&D in the Income folder. To do so, see Attaching a Form 8949 substitute to Form 8453, or attach the substitute form as a PDF file attachment.

If a return has been rejected due to the IRS limitation, consider the following alternative.

• Electronically file the federal return and suppress electronic filing for the state returns. To do so, open federal Screen ELF in the Electronic Filing folder, and mark the Suppress the creation of: State electronic file(s) when only filing the federal return / extension electronically field. You will then need to paper file any state returns.
• Instead of entering transactions in UltraTax CS, report all Schedule D transactions using a Schedule D-1 substitute attached to Form 8453, and enter a summary of the transactions on Schedule D.

Related topic: 1040-US ELF: Electronic filing FAQs

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