Selling shares, property or digital assets means reporting each disposal individually before the totals reach the summary schedule.
The reporting itself is mechanical. What causes the work is establishing what you paid, because reported cost information is often incomplete for older holdings, transfers between institutions, inherited assets and anything acquired through an employer plan.
This covers who has to complete it, how holding period changes the treatment, what the categories on the form mean, how each column is filled, and the adjustments that come up most often.
What Is Form 8949?
IRS Form 8949 is used to report each individual sale or disposition of a capital asset, including stocks, bonds, mutual funds, real estate, cryptocurrency, and other investments. Every transaction is reported separately, and the totals then flow to Schedule D (Capital Gains and Losses) on your Form 1040.
Reported cost information is not always complete, particularly for older holdings, transfers between institutions, inherited assets and anything acquired through an employer plan. Where it is missing or wrong, the figure has to come from your own records, which is why purchase confirmations matter long after the purchase.
Ankit Sarawagi, CPA, CA, MBA · LinkedInWho Must File Form 8949?
You must file Form 8949 if you sold or exchanged capital assets during the year, including:
- Stocks, bonds, or mutual fund shares.
- Real property (unless reported on other forms).
- Cryptocurrency (each transaction is a separate taxable event).
- Options, futures contracts, or other financial instruments.
- Collectibles and other personal assets sold at a gain.
Short-Term vs. Long-Term
| Holding Period | Tax Treatment |
|---|---|
| Held 1 year or less (short-term) | Taxed at ordinary income rates |
| Held more than 1 year (long-term) | Taxed at preferential capital gains rates (0%, 15%, or 20%) |
Short-term transactions go on one copy of Form 8949; long-term transactions go on a separate copy (or the same form with separate sections).
The Three Check Boxes: A, B, and C
Each Form 8949 requires you to check ONE of three boxes, indicating how you received cost basis information:
- Box A: Transactions reported on Form 1099-B with cost basis reported to the IRS (most common for stocks bought after 2011).
- Box B: Transactions reported on Form 1099-B but WITHOUT cost basis reported to the IRS.
- Box C: Transactions NOT reported on Form 1099-B at all (older assets, certain real estate, crypto from some platforms, barter).
Pro Tip: You will have a separate Form 8949 for each check box. If you have all three types, you need three Form 8949s (two if short-term and long-term for each box).
Column-by-Column Breakdown
| Column | What to Enter |
|---|---|
| (a) Description | Security or asset name (e.g., 'Apple Inc. stock', '0.5 BTC') |
| (b) Date acquired | MM/DD/YYYY format |
| (c) Date sold or disposed | MM/DD/YYYY format |
| (d) Proceeds | Amount received from the sale (from your 1099-B or records) |
| (e) Cost or other basis | What you paid for the asset, including commissions |
| (f) Codes | Adjustment codes (e.g., W for wash sale, B for basis not reported) |
| (g) Adjustment amount | Amount of any gain/loss adjustment |
| (h) Gain or loss | Proceeds minus basis, adjusted |
Cryptocurrency and Form 8949
Each cryptocurrency transaction, every sale, trade, or exchange, is a separate taxable event that must appear as its own row on Form 8949. This includes:
- Selling crypto for dollars.
- Trading one cryptocurrency for another.
- Using cryptocurrency to buy goods or services.
- Receiving crypto as payment (then later selling it).
Many crypto platforms provide a transaction history report that you can use to complete Form 8949. Some provide a CSV that tax software can import directly.
Wash Sale Adjustments (Code W)
A wash sale occurs when 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 and is instead added to the basis of the replacement shares. You must enter adjustment code 'W' in column (f) and add back the disallowed loss in column (g).
How Form 8949 Flows to Schedule D
After completing Form 8949, you total each section (short-term Box A, B, C and long-term Box A, B, C) and carry those totals to the corresponding lines of Schedule D. Schedule D then calculates your net capital gain or loss, which flows to Form 1040.
Book a free consultation and we will take the return off your desk.
Frequently Asked Questions
Do I need Form 8949 if my broker already reported everything on a 1099-B?
Yes. Even if your broker reported all transactions on a 1099-B, you still must complete Form 8949. The 1099-B is the source document; Form 8949 is how you report it to the IRS.
Can I aggregate transactions instead of listing each one separately?
In limited cases, if all transactions fall in Box A or Box D (the long-term equivalent) and there are no adjustments, you may be able to report only the totals on Schedule D without itemizing every transaction on Form 8949. Check current IRS instructions, this exception has specific requirements.
What if I have hundreds of crypto transactions?
You can attach a separate statement listing all transactions in the same format as Form 8949, then enter the totals on Form 8949 with a notation that a detailed statement is attached.
What happens if I forget to report a transaction?
The IRS receives 1099-B data from brokers. If you omit a reported transaction, you may receive a CP2000 notice proposing additional tax based on the proceeds alone (ignoring your basis). Respond promptly with your complete Form 8949.
What should be reconciled before the schedule is prepared?
The broker statements against your own record of what was bought and sold, and in particular against what you paid. Reported cost information is not always complete, especially for older holdings, transfers between institutions, inherited assets and anything acquired through an employer plan. Where it is missing or wrong, the figure has to come from your records, which is why keeping purchase confirmations matters long after the purchase.
Written by
Ankit Sarawagi, CPA, CA, MBA
Ankit leads the finance team at Profitjets, where he has worked with 500+ businesses across the US on bookkeeping, tax and CFO-level strategy. He writes about the habits that keep small business books accurate all year. Connect on LinkedIn
Free consultation
Want the Filing Handled?
Book a free consultation and we will take the return off your desk.