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Cost Basis Reporting FAQs

If I sold, exchanged, or otherwise disposed of a capital asset, what do I need to file with my tax return this year?

Generally, when you sell, exchange or otherwise dispose of a capital asset (most property you own and use for personal purposes, pleasure, or investment is a capital asset, including your house, furniture, car, stocks, and bonds), you report it on Form 1040, Schedule D. However, there are changes to the reporting requirements for returns filed for the 2012 tax year. 

Many transactions that previously would have been reported on Schedule D or D-1 must be reported on Form 8949 if they occurred in 2012. Complete Form 8949 before you complete line 1, 2, 3, 8, 9 or 10 of Schedule D. For 2012 transactions, Schedule D-1 is no longer in use; Form 8949 replaces it.  

The IRS has created a page for information about Form 8949 and Schedule D at www.irs.gov/form8949

What can I expect to receive from my broker that is different from previous years?

You will still receive a Form 1099-B; however, we added new boxes beginning with tax year 2011. The key changes to the form are:

  • Starting in tax year 2011, brokers must report the adjusted basis and whether any gain or loss on a sale is classified as short-term or long-term from the sale of "covered securities" on Form 1099-B.
  • "Covered securities" are generally shares of corporate stock acquired on or after January 1, 2011.
  • Shares of stock in mutual funds and stock acquired in connection with a dividend reinvestment plan are generally not covered unless acquired after January 1, 2012. 
  • Certain other types of securities (e.g., debt instruments and options) will be covered if acquired after January 1, 2014.

I need to file a Schedule D with my 1040 this year. What has changed since I previously filed a Schedule D?

Many transactions that, in previous years, were reported on Schedule D or D-1 must be reported on Form 8949 if they occurred in 2012. Complete Form 8949 before you complete line 1, 2, 3, 8, 9 or 10 of Schedule D. For 2012 transactions, Schedule D-1 is no longer in use; Form 8949 replaces it.  

You may need multiple Forms 8949 if you have multiple transactions to report. We have new information about Form 8949 and Schedule D at www.irs.gov/form8949.

I filed a Schedule D-1 with my Schedule D in previous years. What form replaces the D-1 for tax year 2011 or later?

Beginning in tax year 2011, Form 8949 replaces Schedule D-1. Details for individual transactions pertaining to short-term and long-term dispositions are reported on Form 8949, and then entered on the Schedule D. We have new information about Form 8949 and Schedule D at www.irs.gov/form8949.

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Page Last Reviewed or Updated: 06-Aug-2014