# IRS Form 8949: Sales and Other Dispositions of Capital Assets

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## What Is IRS Form 8949?

Form 8949: Sales and Other Dispositions of Capital Assets is an Internal Revenue Service (IRS) form used to report capital gains and losses from investments. Individual taxpayers, partnerships, corporations, trusts, and estates use it.

Taxpayers are required to report short- and long-term [capital gains](https://www.investopedia.com/articles/tax/09/tax-effects-capital-gains.asp) and losses from investment sales. The information recorded on Form 8949 reconciles the amounts reported to taxpayers and the IRS on [Form 1099-B](https://www.investopedia.com/terms/f/form-1099-b.asp), which brokerages send to their account holders annually.

### Key Takeaways

*   IRS Form 8949 is used to report capital gains and losses from investments for tax filing.
*   The form includes Part I and Part II to separate short-term from long-term capital gains and losses, as they are subject to different tax rates.
*   Users of Form 8949 also need to complete a Schedule D and file a Form 1099-B, provided by brokerages to individual taxpayers.

## Who Can File Form 8949?

According to the IRS, individuals, partnerships, corporations, trusts, and estates can file Form 8949 to report:

*   The sale or exchange of a [capital asset](https://www.investopedia.com/terms/c/capitalasset.asp) not reported on another form or schedule
*   Gains from involuntary conversions (other than from casualty or theft) of capital assets not used in your trade or business.
*   Non-business bad debts
*   The worthlessness of a security
*   The election to defer capital gain invested in a [Qualified Opportunity Fund](https://www.investopedia.com/opportunity-fund-4688682)
*   The disposition of interests in Qualified Opportunity Funds

Taxpayers filing a [joint return](https://www.investopedia.com/terms/j/jointreturn.asp) must complete as many pages of the form as necessary to report their transactions. The totals from all completed pages of Form 8949 are transferred to Schedule D.

Corporations can also use Form 8949 to report the sale of stock from a specified 10%-owned foreign corporation, adjusted for the dividends-received deduction under section 245A, but only if the sale would otherwise generate a loss.

> **Important**
>
> Taxpayers with an eligible gain can invest it in a Qualified Opportunity Fund and elect to defer part or all of that gain.

## How to File Form 8949

A [capital gain](https://www.investopedia.com/terms/c/capitalgain.asp) or loss is generated when a capital asset is sold and reported to the IRS for tax purposes. [Schedule D: Capital Gains and Losses](https://www.investopedia.com/terms/s/scheduled.asp) of IRS Form 1040 is used to report most capital gain or loss transactions. Form 8949 must be completed to arrive at the net gain or loss that is entered on Schedule D.

Form 8949 requires the filer's name, taxpayer identification number, and two parts to complete. Part I is for short-term assets held one year or less. Part II is for long-term transactions (assets held for more than one year). Each asset sold must be identified including its purchase, sale date, and sale price.

The transactions reported on Form 8949 can be found on [Form 1099-B: Proceeds from Broker and Barter Exchange Transactions](https://www.investopedia.com/terms/f/form-1099-b.asp), provided annually by brokerages to their account holders and the IRS. Form 1099-B reports the [cost basis](https://www.investopedia.com/terms/c/costbasis.asp) of the investor’s buy and sell transactions.

In cases where Form 1099-B does not report the cost basis, the taxpayer must determine the base amount to calculate the gain or loss from a capital asset using a separate Form 8949.  A capital asset transaction for which no Form 1099-B is issued must be listed on another Form 8949.

Form 8949 can also be used to correct any inaccuracies in the data reported on Form 1099-B. If the capital gains or losses for the year are accurately reported for all assets on 1099-B with the correct basis, then Form 8949 is not necessary.

Keep in mind that Schedule D is still required and must still be filed.

## Where to Find Form 8949

All the pages of Form 8949: Sales and Other Dispositions of Capital Assets are available on the IRS website.

![Form 8949 IRS 2023](https://www.investopedia.com/thmb/xYsW-qJUGzYVnxQ2_zY0gvhlsoo=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/irsform8949-41fa0a88062d4b0daab22dac50c00f49.jpg)

*Form 8949 IRS 2023.*

## Can Schedule D Be Completed Without Form 8949?

No, a taxpayer with capital gains or losses to report must file Form 8949 and Schedule D. [Form 8949](https://www.investopedia.com/articles/personal-finance/083015/purpose-irs-form-8949.asp) details every transaction, including its cost basis, sale date and price, and the total gain or loss. The total short-term and long-term gains or losses are then summarized on Schedule D to determine the total amount of capital gains taxes owed.

## What Information Is Required on Form 8949?

Information required for each asset reported on Form 8949 includes the stock or other asset description, purchase price, purchase date, selling price, and selling date.  

## Is Form 8949 Required for Reporting Cryptocurrency Transactions?

Form 8949 may be required when you realize a gain on [cryptocurrency](https://www.investopedia.com/terms/c/cryptocurrency.asp) by buying and then selling crypto for profit in a taxable account or exchanging crypto for goods or services that realize a gain in value.  

## The Bottom Line

Form 8949: Sales and Other Dispositions of Capital Assets is an IRS form used by individuals and businesses to report capital gains and losses from investments. Form 8949 and Schedule D are required as part of your tax return whenever a capital asset, such as stock, is sold during the year.

Each asset listing on Form 8949 must include a description, purchase price, purchase date, selling price, and selling date. For stock investors, most of the information needed to complete Form 8949 is included on Form 1099-B, which brokerages send to their account holders annually.  

> **Article Sources**
>
> 1.  Internal Revenue Service. "[Topic No. 409, Capital Gains and Losses](https://www.irs.gov/taxtopics/tc409)."
>     
> 2.  Internal Revenue Service. "[Instructions for Form 8949 (2023)](https://www.irs.gov/instructions/i8949)."
>     
> 3.  Internal Revenue Service. "[Instructions for Schedule D (2023)](https://www.irs.gov/instructions/i1040sd)."
>     
> 4.  Internal Revenue Service. "[2023 Form 8949](https://www.irs.gov/pub/irs-pdf/f8949.pdf)."
>     
> 5.  Internal Revenue Service. "[About Form 1099-B, Proceeds from Broker and Barter Exchange Transactions](https://www.irs.gov/forms-pubs/about-form-1099-b)."
>     
> 6.  Internal Revenue Service. "[About Form 8949, Sales and other Dispositions of Capital Assets](https://www.irs.gov/forms-pubs/about-form-8949)."
>     
> 7.  Internal Revenue Service. "[Frequently Asked Questions on Virtual Currency Transactions](https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions)."