how to file form 8949
a capital gain or loss is generated when a capital asset is sold and reported to the irs for tax purposes schedule d capital gains and losses of irs form 1040 is used to report most capital gain or loss transactions form 8949 must be completed in order to arrive at the net gain or loss that is entered on schedule d 3along with the filer s name and taxpayer identification number form 8949 has two parts that need to be completed part i deals with short term assets held one year or less part ii is used for long term transactions those assets held for more than one year each asset sold must be identified along with its purchase and sale date and its purchase and sale price 4the transactions reported on form 8949 can be found on form 1099 b proceeds from broker and barter exchange transactions which is provided by brokerages once a year to their account holders and to the irs form 1099 b reports the cost basis of the investor s buy and sell transactions 5in some cases form 1099 b will not report the cost basis of an asset if this is the case 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 2form 8949 can also be used to correct any inaccuracies in the data reported on form 1099 b if the capital losses or gains for the year are reported for all assets on 1099 b with the correct basis then form 8949 is not necessary 2keep in mind though that schedule d is still required and must still be filed 2