8949: Sales and Other Dispositions of Capital Assets (2024)

Who files this form

Use Form 8949 to report sales and exchanges of capital assets that are not reported on another form or schedule. File it with Schedule D.

Individuals, corporations, partnerships, estates, and trusts use this form. Reportable items include:

• Sales or exchanges of capital assets, including transactions without a Form 1099-B or 1099-S.
• Nonbusiness bad debts and worthless securities.
• Elections to defer capital gain invested in a qualified opportunity fund (QOF), and dispositions of QOF interests.

Individuals also use Form 8949 for sales or exchanges of capital assets reported on Form 1099-K and certain involuntary conversions.

Some transactions can be reported directly on Schedule D without Form 8949. See the FAQ about this exception below.

What you'll need

Gather the documents and information that apply to your transactions:

• Forms 1099-B and 1099-S, or substitute statements. A broker statement may tell you whether basis was reported to the IRS and which box to check.
• Form 1099-K if it reports proceeds from a sale of personal property.
• Records showing the property description, acquisition date, sale date, proceeds, and cost or other basis.
• Basis records showing purchase price and commissions, plus changes such as improvements, depreciation, nondividend distributions, and stock splits.
• Schedule A to Form 8971 if you received one for inherited property. Use the most recently dated supplemental Schedule A if one was provided.
• Your Schedule D, where you will include the Form 8949 totals.

For digital assets, have the asset name or symbol, exact units sold or disposed of, and sale transaction ID number, if available.

If you lost or did not keep records needed to determine your basis in securities, contact your broker for help.

How to file

Complete Form 8949 before completing Schedule D lines 1b, 2, 3, 8b, 9, or 10. File Form 8949 with the Schedule D for your return.

1. Separate short-term transactions into Part I and long-term transactions into Part II.
2. Use a separate Part I or Part II for each applicable checkbox category. Check only one box on each part.
3. Report each transaction on a separate row unless a reporting exception applies. Enter the transaction details, any adjustment codes and amounts, and the gain or loss.
4. Add the totals and carry them to the Schedule D line specified on the form.

If you e-file: If you choose not to report each transaction on a separate row on the electronic return, attach Form 8949 to Form 8453, or the appropriate form in the Form 8453 series, and mail the forms to the IRS. You may substitute statements containing the same information in a similar format. A paper Form 8949 cannot be attached to Form 8453-FE.

This mailing requirement does not apply to transactions qualifying for Exception 1 or the special provision for certain corporations, partnerships, securities dealers, and other qualified entities. For those transactions, an attachment, statement, or Form 8453 is not required.

The supplied text does not provide a mailing address.

Common mistakes

• Checking more than one box on a part. Check only one box and use separate parts for different transaction categories.
• Replacing an incorrect basis that was reported to the IRS. For transactions with Box A or D checked, enter the reported basis in column (e), then correct it with an adjustment in column (g).
• Leaving out an adjustment code. If you enter an adjustment amount in column (g), enter the appropriate code in column (f).
• Using summary totals without required details. Under Exception 2, do not write “Available upon request” instead of providing transaction details on Form 8949 or attached statements.
• Using Exception 2 for a QOF deferral election. This exception is not available for that election. Report the details of each QOF investment as instructed.
• Putting QOF deferral forms in the wrong order. When attaching multiple Forms 8949, attach forms showing code Z in column (f) first.

Questions people ask

Can I report transactions directly on Schedule D instead?

Yes, under Exception 1, qualifying short-term totals go on line 1a and qualifying long-term totals go on line 8a. This exception excludes sales of collectibles and requires all of the following:

• Form 1099-B or a substitute statement shows basis was reported to the IRS, with no adjustments in boxes 1f or 1g.
• The Ordinary box in box 2 is not checked.
• No adjustment is needed to the reported basis, type of gain or loss, or gain or loss amount.
• You are not electing to defer income through a QOF investment or terminating a QOF deferral.

No Form 8949 or attached statement is needed for transactions you report this way.

How do I decide whether a transaction is short-term or long-term?

Generally, property held 1 year or less is short-term and belongs in Part I. Property held more than 1 year is long-term and belongs in Part II. Count from the day after you received the property through the day you disposed of it. Inherited property is generally treated as long-term regardless of how long you held it. Certain partnership interests have different rules.

Do I report a sale if I did not receive Form 1099-B or 1099-S?

Yes. Include sales and exchanges of capital assets even if you did not receive either form, unless they are reported elsewhere as directed in the instructions. For a sale of your main home, consult the Schedule D instructions.

Can spouses use separate Forms 8949 on a joint return?

Yes. You may list your transactions separately or combine them. Include the totals from all Forms 8949 for both spouses on your Schedule D.

Official sources

• https://www.irs.gov/pub/irs-prior/f8949--2024.pdf
• https://www.irs.gov/pub/irs-prior/i8949--2024.pdf