Specific Instructions

Table of Contents

    In Part I, report the sale, exchange, or distribution of capital assets held 1 year or less. In Part II, report the sale, exchange, or distribution of capital assets held more than 1 year.

    Lines 1a and 8a – Transactions not reported on Form 8949.   The corporation can report on line 1a (for short-term transactions) or line 8a (for long-term transactions) the aggregate totals from any transactions (except sales of collectibles) for which:
    • The corporation received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and does not show a nondeductible wash sale loss in box 5; and

    • The corporation does not need to make any adjustments to the basis or type of gain or loss (short term or long term) reported on Form 1099-B (or substitute statement), or to its gain or loss.

    See How To Complete Form 8949, Columns (f) and (g), in the Instructions for Form 8949 for details about possible adjustments to the corporation's gain or loss.

      If the corporation chooses to report these transactions on lines 1a and 8a, do not report them on Form 8949. Also, the corporation does not need to attach a statement to explain the entries on lines 1a and 8a.

      Figure gain or loss on each line. First, subtract the cost or other basis in column (e) from the proceeds (sales price) in column (d). Enter the gain or loss in column (h). Enter negative amounts in parentheses.

    Example 1 – basis reported to the IRS.

    The corporation received a Form 1099-B reporting the sale of stock held for 3 years, showing proceeds (in box 2a) of $6,000 and cost or other basis (in box 3) of $2,000. Box 6b is checked, meaning that basis was reported to the IRS. The corporation does not need to make any adjustments to the amounts reported on Form 1099-B or enter any codes. This was the corporation's only 2013 transaction. Instead of reporting this transaction on Form 8949, the corporation can enter $6,000 on Schedule D, line 8a, column (d), $2,000 in column (e), and $4,000 ($6,000 - $2,000) in column (h).

    Example 2 – basis not reported to IRS.

    The corporation received a Form 1099-B showing proceeds (in box 2a) of $6,000 and cost or other basis (in box 3) of $2,000. Box 6b is not checked, meaning that basis was not reported to the IRS. Do not report this transaction on line 1a or line 8a. Instead, report the transaction on Form 8949. Complete all necessary pages of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of Schedule D.

    Example 3 – adjustment.

    The corporation received a Form 1099-B showing proceeds (in box 2a) of $6,000 and cost or other basis (in box 3) of $2,000. Box 6b is checked, meaning that basis was reported to the IRS. However, the basis shown in box 3 is incorrect. Do not report this transaction on line 1a or line 8a. Instead, report the transaction on Form 8949. See the instructions for Form 8949, columns (f), (g), and (h). Complete all necessary pages of Form 8949 before completing lines 1b, 2, 3, 8b, 9, or 10 of Schedule D.

    Lines 1b, 2, 3, 8b, 9, and 10 – Transactions reported on Form 8949.   Complete Form 8949 before completing Schedule D, lines 1b, 2, 3, 8b, 9, and 10. Enter on Schedule D, lines 1b, 2, and 3, respectively, the short-term totals from all Forms 8949, Part I, line 2, with box A, B, or C, respectively, checked. Enter on Schedule D, lines 8b, 9, and 10, respectively, the long-term totals from all Forms 8949, Part II, line 2, with box D, E, or F, respectively, checked.

    Line 6.    Enter any unused capital loss carryover. Attach a statement showing how the carryover was computed.

    Line 14.   Enter the total capital gain distributions paid by a RIC or REIT during the year, regardless of how long the corporation owned stock in the RIC or REIT.

      Also enter any amount received from a RIC or REIT that qualifies as a distribution in complete liquidation under section 332(b) and is designated by the RIC or REIT as a capital gain distribution. See section 332(c).


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