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Use Form 8949 to report sales and exchanges of capital assets. Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.
Information about Form 8949, Sales and other Dispositions of Capital Assets, including recent updates, related forms and instructions on how to file. Form 8949 is used to list all capital gain and loss transactions.
What Is IRS Form 8949? Form 8949: Sales and Other Dispositions of Capital Assets is an Internal Revenue Service (IRS) form used to report capital gains and losses from investments.
Taxpayers use Form 8949 to report sales and exchanges of capital assets. Form 8949 allows you and the IRS to reconcile amounts reported to you and the IRS on brokerage statements such as Forms 1099-B or 1099-S (substitute statements).
According to the IRS, individuals, partnerships, corporations, trusts, and estates can use Form 8949 to report the following: The sale or exchange of a capital asset not reported on another form. Gains from involuntary conversions of capital assets not used in your trade or field of business.
Complete Form 8949 before you complete line 1b, 2, 3, 8b, 9, or 10 of Schedule D. Purpose of Form Use Form 8949 to report sales and exchanges of capital assets. Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.
Up until 2011, you could total your transactions on Schedule D; these days, you may be required to list them separately using Form 8949. With a few key instructions, you can easily report your capital gains and losses in your next tax filing. Learn more about how to fill out Tax Form 8949 below.
In this post, you'll learn key deadlines, filing instructions, and a walkthrough for completing Form 8949—including gathering documentation, detailing transactions, determining cost basis, and deciphering codes.
Form 8949 isn't required for certain transactions. You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D. This option applies only to transactions (other than sales of collectibles) for which:
When selling a capital asset, the IRS requires you to fill out Form 8949. While you’ve probably sold plenty of capital assets, you may have never heard of Form 8949. That is likely because your accountant handles all of your tax filings or software fills in this form automatically for you.