Sales & Other Dispositions of Capital Assets – IRS Form 8949
The IRS has a new Form 8949, Sales and Other Dispositions of Capital Assets that taxpayers must use to report most capital gains and losses. Any properties you own for investment purposes and most properties you own for personal purposes (ie your house) are for the most part considered capital assets. Use Form 8949 to report the sale or exchange of a capital asset you are not reporting elsewhere such as Form 6252 or 8824. Procedure wise you’ll need to fill out Form 8949 before you fill out line 1, 2, 3, 8, 9 or 10 of Form 1040 (Schedule D)
Use as many Forms 8949 as necessary to report all transactions, but make sure that each Form 8949 includes only the type of transactions described in the text for the box checked. Basically at the top of each Form 8949 you file, you’ll need to check box A, B or C, based on what is indicated in box 3 of the Form 1099-B or substitute statement.
Check box A if your broker reported the transaction to you and the basis of the securities sold also was reported to the IRS
Check box B if the transaction was reported to you but box 3 of the Form 1099-B is blank or your statement says the basis was not reported to the IRS.
Check box C for all other transactions.
There has been some confusion surrounding the fact that in order to adjust a gain or loss, you may have to enter a code in column (b) and an adjustment in column (g). For clarification I suggest reading the 2011 Instructions for Schedule D and Form 8949.