Form 8949

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IRS Form 8949: Sales and Other Dispositions of Capital Assets

What is Form 8949?

Form 8949 is an IRS tax form used to report capital gains and losses from the sale or other disposition of capital assets. It reconciles the transactions reported to taxpayers and the IRS on Form 1099-B (brokerage proceeds) and provides the detail needed to compute net capital gain or loss for Schedule D.

Who must use it

  • Individuals, partnerships, corporations, trusts, and estates that have reportable capital asset transactions.
  • Transactions that must be reported include:
  • Sales or exchanges of capital assets not reported elsewhere.
  • Gains from involuntary conversions (except casualty or theft) of nonbusiness capital assets.
  • Nonbusiness bad debts and securities that become worthless.
  • Elections or dispositions related to Qualified Opportunity Funds.
  • Corporations may use Form 8949 in limited cases (for example, sales of stock of a specified 10%-owned foreign corporation that would otherwise generate a loss, with adjustments under section 245A).

How Form 8949 relates to Schedule D and Form 1099-B

  • Form 8949 lists each transaction with full details (description, purchase date and price, sale date and price, and any adjustments).
  • Totals from Form 8949 feed into Schedule D (Capital Gains and Losses), which summarizes short-term and long-term results for the tax return.
  • Brokerages provide Form 1099-B showing proceeds and often cost basis. Form 8949 reconciles any differences between the taxpayer’s records and the 1099-B.

When you must file Form 8949

  • Generally required whenever you have capital gains or losses to report.
  • If all transactions on your 1099-B show correct basis and are reported correctly to the IRS (no adjustments needed), you may not need to attach Form 8949, but you must still complete and file Schedule D.
  • If 1099-B does not report cost basis, or you must make adjustments or corrections, you must list those transactions on Form 8949.

Filling out Form 8949

  • Provide your name and taxpayer identification number.
  • Two parts:
  • Part I — Short-term transactions (assets held one year or less).
  • Part II — Long-term transactions (assets held more than one year).
  • For each sale/disposition include:
  • Description of asset
  • Date acquired
  • Date sold or disposed
  • Proceeds (sale price)
  • Cost or other basis
  • Code(s) and amount(s) of any adjustments
  • Gain or loss
  • Use additional pages as necessary; totals transfer to Schedule D.

Special situations

  • Missing cost basis: If 1099-B does not report cost basis, you must determine and report basis on Form 8949.
  • Corrections: Use Form 8949 to correct inaccuracies on a received 1099-B.
  • Cryptocurrency: Gains from selling or exchanging cryptocurrency are reportable capital transactions; Form 8949 may be required when a taxable gain or loss occurs.
  • Qualified Opportunity Funds: Taxpayers with eligible gains can elect deferral or report dispositions related to these funds on Form 8949.

Where to get the form

Form 8949 and its instructions are available on the IRS website.

Key takeaways

  • Form 8949 documents individual capital asset transactions and reconciles them with broker-reported 1099-B information.
  • It separates short-term and long-term transactions (different tax treatments).
  • Totals from Form 8949 are summarized on Schedule D, which is filed with your tax return.
  • Use Form 8949 when cost basis is missing, when making adjustments, or when correcting 1099-B entries; if all your 1099-Bs are correct and require no adjustments, you still file Schedule D but may not need to attach Form 8949.

Sources

U.S. Internal Revenue Service — Instructions for Form 8949; Form 1099-B information; Instructions for Schedule D.