General Instructions

File Form 8949 with the Schedule D for the return you are filing. This includes Schedule D of Forms 1040, 1041, 1065, 1065-B, 8865, 1120, 1120S, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, and certain Forms 990-T.

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 Form 1099-B or 1099-S (or substitute statement) with the amounts you report on your return. If you received Form 1099-B or 1099-S (or substitute statement), always report the proceeds (sales price) shown on that form (or statement) in column (d) of Form 8949. If Form 1099-B (or substitute statement) shows that the cost or other basis was reported to the IRS, always report the basis shown on that form (or statement) in column (e). If any correction or adjustment to these amounts is needed, make it in column (g). See How To Complete Form 8949, Columns (f) and (g), later, for details about these adjustments.

If all Forms 1099-B you received (and all substitute statements) show basis was reported to the IRS and if no correction or adjustment is needed, you may not need to file Form 8949. See Exception 3 under the instructions for line 1.

Individuals.   Individuals use Form 8949 to report:
  • The sale or exchange of a capital asset not reported on another form or schedule,

  • Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit, and

  • Nonbusiness bad debts.

  If you are filing a joint return, complete as many copies of Form 8949 as you need to report all of your and your spouse's transactions. You and your spouse may list your transactions on separate forms or you may combine them. However, you must include on your Schedule D the totals from all Forms 8949 for both you and your spouse.

Corporations and partnerships.   Corporations and partnerships use Form 8949 to report:
  • The sale or exchange of a capital asset not reported on another form or schedule,

  • Nonbusiness bad debts, and

  • Undistributed long-term capital gains from Form 2439.

  Corporations also use Form 8949 to report their share of gain or (loss) from a partnership, estate, or trust.

  For corporations and partnerships meeting certain criteria, an exception to some of the normal requirements for completing Form 8949 has been provided. See Exception 2 under the instructions for line 1.

Estates and trusts.   Estates and trusts use Form 8949 to report the sale or exchange of a capital asset not reported on another form or schedule.

Schedule D.   Use Schedule D for the following purposes.
  • To figure the overall gain or loss from transactions reported on Form 8949.

  • To report a gain from Form 6252 or Part I of Form 4797.

  • To report a gain or loss from Form 4684, 6781, or 8824.

  • To report capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14).

  • To report a capital loss carryover from the previous tax year to the current tax year.

  • To report your share of a gain or (loss) from a partnership, S corporation, estate, or trust. (However, corporations report this type of gain or (loss) on Form 8949.)

  • To report transactions reported to you on a Form 1099-B (or substitute statement) showing basis was reported to the IRS and for which you have no adjustments, as explained under Exception 3, later.

  Individuals, estates, and trusts also use Schedule D to report undistributed long-term capital gains from Form 2439.

Additional information.   See the instructions for the Schedule D you are filing for detailed information about the following.
  • Other forms you may have to file.

  • The definition of capital asset.

  • Reporting capital gain distributions, undistributed capital gains, the sale of a main home, the sale of capital assets held for personal use, or the sale of a partnership interest.

  • Capital losses, nondeductible losses, and losses from wash sales.

  • Traders in securities.

  • Short sales.

  • Gain or loss from options.

  • Installment sales.

  • Demutualization of life insurance companies.

  • Exclusion or rollover of gain from the sale of qualified small business stock.

  • Any other rollover of gain, such as gain from the sale of publicly traded securities.

  • Exclusion of gain from the sale of DC Zone assets or qualified community assets.

  • Certain other items that get special treatment.

  • Special reporting rules for corporations, partnerships, estates, and trusts in certain situations.

  For more information about reporting on Forms 6252, 4797, 4684, 6781, and 8824, see the instructions for those forms. See Pub. 544 and Pub. 550 for more details.

Basis and Recordkeeping

Basis is the amount of your investment in property for tax purposes. The basis of property you buy is usually its cost. You need to know your basis to figure any gain or loss on the sale or other disposition of the property. You must keep accurate records that show the basis and, if applicable, adjusted basis of your property. Your records should show the purchase price, including commissions; increases to basis, such as the cost of improvements; and decreases to basis, such as depreciation, nondividend distributions on stock, and stock splits.

For more information on basis, see the instructions for column (e), later, and these publications.

  • Pub. 550, Investment Income and Expenses (Including Capital Gains and Losses).

  • Pub. 551, Basis of Assets.

If you lost or did not keep records to determine your basis in securities, contact your broker for help. If you receive a Form 1099-B (or substitute statement), your broker may have reported your basis for these securities in box 3.

The IRS partners with companies that offer Form 8949 software that can import trades from many brokerage firms and accounting software that can help you keep track of your adjusted basis in securities. To find out more, go to www.irs.gov/efile.

Short Term or Long Term

Separate your capital gains and losses according to how long you held or owned the property.

The holding period for short-term capital gains and losses is 1 year or less. Report these transactions on Part I of Form 8949 (or line 1a of Schedule D if you can use Exception 3 under the instructions for Form 8949, line 1).

The holding period for long-term capital gains and losses is more than 1 year. Report these transactions on Part II of Form 8949 (or line 8a of Schedule D if you can use Exception 3 under the instructions for Form 8949, line 1).

To figure the holding period, begin counting on the day after you received the property and include the day you disposed of it. If you receive a Form 1099-B (or substitute statement), box 1c may help you determine whether the gain or loss is short-term or long-term.

Generally, if you disposed of property that you acquired by inheritance, report the disposition as a long-term gain or loss regardless of how long you held the property.

A nonbusiness bad debt must be treated as a short-term capital loss. See Pub. 550 for what qualifies as a nonbusiness bad debt and how to enter it on Part I of Form 8949.

Corporation's Gains and Losses from Partnerships, Estates, or Trusts

Report a corporation's share of capital gains and losses from investments in partnerships, estates, or trusts on the appropriate Part of Form 8949. Report a net short-term capital gain or (loss) on Part I (with box C checked) and a net long-term capital gain or (loss) on Part II (with box F checked). In column (a), enter “From Schedule K-1 (Form 1065),” “From Schedule K-1 (Form 1065-B),” or “From Schedule K-1 (Form 1041),” whichever applies; enter the gain or (loss) in column (h); and leave all other columns blank.

If more than one Schedule K-1 is received, report each on a separate row. Include additional identifying information, such as “Partnership X.

Rounding Off to Whole Dollars

You can round off cents to whole dollars on Form 8949. If you do round to whole dollars, round all amounts. To round, drop cent amounts under 50 cents and increase cent amounts over 49 cents to the next dollar. For example, $1.49 becomes $1 and $1.50 becomes $2.


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