What is the wash sale rule?

If you sell a security at a loss and buy the same or substantially identical security within 30 days before or after the sale, the loss is disallowed. The disallowed loss is added to the cost basis of the replacement shares.

How are cryptocurrency transactions reported?

Each cryptocurrency sale, trade, or conversion is a taxable event reported on Form 8949. Report the date acquired, date sold, proceeds, and cost basis for each transaction. You may need to calculate basis using FIFO or specific identification.

What if I have hundreds of transactions?

You can attach a detailed statement with the same columns as Form 8949 in lieu of listing each transaction on the form. Many tax software programs generate this attachment automatically.

Do I report inherited stock differently?

Inherited assets receive a stepped-up basis equal to the fair market value at the date of death. Report the sale on Form 8949 using this stepped-up basis. The holding period is automatically long-term regardless of when the decedent acquired it.

Income

Form 8949: Sales and Other Dispositions of Capital Assets

Reports detailed information about each capital asset transaction before summarizing on Schedule D.

Download Form 8949 PDF About on IRS.gov Instructions PDF

Overview

Form 8949, Sales and Other Dispositions of Capital Assets, is used to report the details of each sale or disposition of capital assets during the tax year. Capital assets include stocks, bonds, mutual funds, cryptocurrency, real estate (other than business property), and personal property like collectibles and artwork.

The form works in conjunction with Schedule D (Capital Gains and Losses) to report your capital transactions to the IRS. While Schedule D summarizes your total capital gains and losses, Form 8949 provides the transaction-by-transaction detail. Each sale must be listed individually, including the description, dates, proceeds, cost basis, and any adjustments.

Transactions are separated into two parts: Part I for short-term capital gains and losses (assets held one year or less) and Part II for long-term capital gains and losses (assets held more than one year). This distinction matters because short-term gains are taxed at ordinary income rates while long-term gains receive preferential tax rates.

Who Files This Form?

You must file Form 8949 if you sold or otherwise disposed of capital assets during the tax year. This includes selling stocks, bonds, mutual funds, ETFs, cryptocurrency, or other investments; selling personal property for more than you paid; or disposing of property through a casualty, theft, or exchange.

You do not need Form 8949 for certain transactions that can be reported directly on Schedule D, such as capital gain distributions from mutual funds (reported on Form 1099-DIV) that do not require basis adjustment. If all your transactions are reported on a 1099-B and the basis was reported to the IRS with no adjustments needed, you may be able to report summary totals directly on Schedule D.

Key Fields

Column (a): Description of property

A description of the asset sold, such as '100 shares AAPL' or '1.5 BTC Bitcoin'.

Column (b): Date acquired

The date you originally purchased or acquired the asset. Write 'VARIOUS' if shares were acquired on different dates.

Column (c): Date sold or disposed

The date the sale or disposition took place.

Column (d): Proceeds

The total amount received from the sale, as reported on Form 1099-B.

Column (e): Cost or other basis

Your original purchase price, including commissions and fees. This may be adjusted for wash sales, stock splits, or return of capital.

Column (f): Adjustment code

A code indicating the type of basis adjustment needed (e.g., 'W' for wash sale, 'B' for incorrect basis on 1099-B).

Column (g): Adjustment amount

The dollar amount of the adjustment to gain or loss.

Column (h): Gain or loss

Proceeds minus basis, plus or minus any adjustments. Positive is a gain; negative is a loss.

Filing Deadlines

Due Date

April 15

With Extension

October 15

Late Filing Penalty

Filed with Form 1040; subject to the same failure-to-file and failure-to-pay penalties.

Step-by-Step Instructions

1
Gather all Form 1099-B statements from your brokerages.
2
Check the box at the top of Form 8949 to indicate whether basis was reported to the IRS (Box A/D), not reported (Box B/E), or the form was not received (Box C/F).
3
List each short-term transaction in Part I and each long-term transaction in Part II.
4
For each transaction, enter the description, dates, proceeds, and cost basis.
5
Apply any adjustments (wash sales, incorrect basis) using the code and amount columns.
6
Calculate the gain or loss for each transaction.
7
Total each column and transfer the totals to Schedule D (Lines 1b, 2, or 3 for short-term; Lines 8b, 9, or 10 for long-term).
8
If you have many transactions, you may attach a statement with the same information in lieu of listing each on Form 8949.

Common Mistakes to Avoid

Not reporting all transactions

The IRS receives copies of all 1099-B forms. Failing to report any transaction will generate an automatic underreporter notice. Report everything, including losses.

Not adjusting for wash sales

If you sold a security at a loss and repurchased it (or a substantially identical security) within 30 days, the loss is disallowed. Add the disallowed amount to the basis of the new shares.

Using the wrong category box (A through F)

Transactions where basis was reported to the IRS go in Box A (short-term) or D (long-term). Noncovered transactions go in Box B or E. Using the wrong box can cause IRS matching issues.

Not correcting incorrect basis from 1099-B

If your 1099-B shows an incorrect cost basis, report the broker's basis in column (e), then use code 'B' in column (f) and enter the adjustment in column (g).

Forgetting cryptocurrency transactions

Cryptocurrency sales, trades, and conversions are reportable capital transactions. Each must be reported on Form 8949 with the date, proceeds, and cost basis.

Frequently Asked Questions

Yes, each sale must be reported individually. However, if you have many transactions with basis reported to the IRS and no adjustments needed, you may report summary totals directly on Schedule D and attach the 1099-B statements.

Related Forms

1099-B

Proceeds from Broker and Barter Exchange Transactions

Schedule D

Capital Gains and Losses

TaxScout.ai extracts Form 8949 automatically

AI-powered extraction with 5-layer validation. No manual data entry.