IRS Tax Forms · Tax Year 2025
Form 8949 Instructions: How to Report Capital Asset Sales
IRS Form 8949, Sales and Other Dispositions of Capital Assets, reports transaction-level details for capital asset sales and exchanges. It separates short-term from long-term transactions, reconciles proceeds and basis from information statements, records adjustments, and sends category totals to Schedule D. This guide covers the 2025 form filed during 2026.
Official sources
Official IRS Form 8949 Resources
This guide provides general federal tax information. Capital asset basis, holding period, loss treatment, and reporting can depend on the taxpayer's complete facts. Consult a qualified tax professional for advice about a specific return.
Quick reference
Form 8949 at a Glance
Question; Short answer
- What is Form 8949 used for?
- It reports and reconciles individual sales and exchanges of capital assets before category totals move to Schedule D.
- What transactions commonly appear?
- Sales of stocks, bonds, digital assets, investment property, and other capital assets not reported on another form or schedule.
- What is Part I?
- Short-term transactions, generally for property held 1 year or less.
- What is Part II?
- Long-term transactions, generally for property held more than 1 year.
- Is Form 8949 always required after a sale?
- No. Certain transactions with basis reported to the IRS and no adjustments may be summarized directly on Schedule D.
- What source documents are common?
- Forms 1099-B, 1099-DA and 1099-S, substitute statements, brokerage reports, digital-asset records, and the taxpayer's basis records.
- Where do the totals go?
- To Schedule D lines 1b, 2, 3, 8b, 9 or 10, depending on the checked box.
- What tax year is covered here?
- Tax year 2025, generally filed in 2026.
Form purpose
What Is Form 8949?
Form 8949 is the transaction-detail statement used to report sales and exchanges of capital assets. It helps reconcile what a taxpayer reports with proceeds and basis information provided to the taxpayer and the IRS on Form 1099-B, Form 1099-DA, Form 1099-S, or a substitute statement.
Each transaction is classified as short term or long term and placed in a category based on the source document and basis-reporting status. Columns identify the asset, acquisition and disposition dates, proceeds, basis, applicable adjustment codes, the adjustment amount, and the resulting gain or loss.
Individuals generally file Form 8949 with Schedule D of Form 1040 or Form 1040-SR. The IRS instructions also provide for Form 8949 with Schedule D for certain estates, trusts, partnerships, corporations, and other returns. This page focuses primarily on individual federal income tax reporting.
Filing requirements
Who Must File Form 8949?
A taxpayer generally needs Form 8949 when a capital asset sale or exchange must be reported and the transaction does not qualify for direct summary reporting on Schedule D or belong on another form. A transaction can be reportable even when no information statement was received.
Common situations include:
- A stock, bond, exchange-traded fund, mutual fund, digital asset, or other capital asset was sold or exchanged and transaction details are required.
- Form 1099-B or Form 1099-DA shows basis was not reported to the IRS.
- Reported proceeds, basis, holding period, or another item requires correction or adjustment.
- The transaction was not reported on Form 1099-B or Form 1099-DA.
- A wash-sale loss or another nondeductible loss needs an adjustment.
- A capital asset sale reported on Form 1099-K produced a taxable gain.
- The taxpayer sold a capital asset reported on Form 1099-S and the transaction must be included.
- A security became worthless or the taxpayer has a qualifying nonbusiness bad debt.
- A capital gain is being deferred or recognized under qualified opportunity fund rules.
Form 8949 is not limited to publicly traded stock. Real estate held as an investment, digital asset exchanges, nonbusiness bad debts, worthless securities, and other capital transactions can require it. Business property, installment sales, section 1256 contracts, like-kind exchanges, casualty transactions, and other specialized items may instead begin on Forms 4797, 6252, 6781, 8824, 4684, or another form.
Filing exceptions
When Is Form 8949 Not Required?
Certain transactions may be aggregated directly on Schedule D when basis was reported to the IRS and no adjustment is required. This is the IRS's Exception 1, and it prevents unnecessary transaction-by-transaction entry on Form 8949.
For an individual transaction to qualify, the applicable Form 1099-B, Form 1099-DA, or substitute statement must indicate that basis was reported to the IRS. The statement must not show specified adjustments, the transaction cannot be a collectible, the ordinary-income indicator cannot apply, and the taxpayer must not need to correct the basis, holding-period type, gain, or loss. Qualified opportunity fund deferral or inclusion rules also prevent use of this shortcut.
Qualifying short-term totals go directly to Schedule D line 1a. Qualifying long-term totals go directly to line 8a. If even one transaction needs an adjustment, that transaction belongs on Form 8949 even when other transactions qualify for direct Schedule D reporting.
Capital gain distributions, pass-through capital gains, capital loss carryovers, and transactions first reported on other specialized forms may appear on Schedule D without being listed on Form 8949. The source and tax treatment should be identified before deciding that a transaction is missing.
Compare the forms
Form 8949 vs Schedule D, Form 1099-B, and Form 1099-DA
These documents perform different jobs in the reporting process.
| Document | Who prepares or receives it | Main purpose | Where it leads |
|---|---|---|---|
| Form 1099-B | A broker or barter exchange issues it to the taxpayer and IRS | Reports proceeds and other information for covered transactions, including basis reporting when applicable | Supplies data used on Form 8949 or directly on Schedule D |
| Form 1099-DA | A digital-asset broker issues it under applicable reporting rules | Reports proceeds from broker digital-asset transactions and other boxes required for the statement | Supplies data used in the digital-asset categories on Form 8949 or directly on Schedule D when eligible |
| Form 1099-S | A reporting person issues it for certain real estate transactions | Reports gross proceeds from a real estate transaction | May supply proceeds for a transaction reported on Form 8949 |
| Form 8949 | The taxpayer prepares it | Lists transactions by category, reconciles information statements, and records adjustments | Sends category totals to Schedule D |
| Schedule D | The taxpayer prepares it | Combines Form 8949 totals with other capital items and calculates the overall capital gain or loss | Flows the net result into the applicable income tax return |
Receiving a Form 1099-B or Form 1099-DA does not by itself prove that Form 8949 is required. The deciding questions include whether basis was reported to the IRS, whether any adjustment is needed, whether the transaction is short term or long term, and whether it qualifies for direct Schedule D reporting.
Transaction categories
Which Part and Box Should You Use?
Use Part I for short-term transactions and Part II for long-term transactions. Then choose the box that matches the document type and basis-reporting status. In general, short term means the asset was held 1 year or less, while long term means it was held more than 1 year.
Count the holding period from the day after acquisition through the day of disposition. Inherited property is generally reported as long term regardless of how long the heir held it. Special rules can change the classification for short sales, certain partnership interests, and other transactions.
Form 8949 boxes for 2025
| Part | Box | Transaction category | Schedule D destination |
|---|---|---|---|
| Part I, short term | A | Form 1099-B or substitute statement shows basis was reported to the IRS | Line 1b |
| Part I, short term | B | Form 1099-B or substitute statement shows basis was not reported to the IRS | Line 2 |
| Part I, short term | C | No Form 1099-B or substitute statement was received for a non-digital transaction | Line 3 |
| Part I, short term | G | Form 1099-DA or substitute statement shows digital-asset basis was reported to the IRS | Line 1b |
| Part I, short term | H | Form 1099-DA or substitute statement shows digital-asset basis was not reported to the IRS | Line 2 |
| Part I, short term | I | No Form 1099-DA or substitute statement was received for a digital-asset transaction | Line 3 |
| Part II, long term | D | Form 1099-B or substitute statement shows basis was reported to the IRS | Line 8b |
| Part II, long term | E | Form 1099-B or substitute statement shows basis was not reported to the IRS | Line 9 |
| Part II, long term | F | No Form 1099-B or substitute statement was received for a non-digital transaction | Line 10 |
| Part II, long term | J | Form 1099-DA or substitute statement shows digital-asset basis was reported to the IRS | Line 8b |
| Part II, long term | K | Form 1099-DA or substitute statement shows digital-asset basis was not reported to the IRS | Line 9 |
| Part II, long term | L | No Form 1099-DA or substitute statement was received for a digital-asset transaction | Line 10 |
For 2025, boxes G, H and I are new short-term digital-asset categories, and boxes J, K and L are new long-term digital-asset categories. Do not report a 2025 digital-asset transaction under box C or F.
The “Applicable checkbox on Form 8949” field on Form 1099-B or Form 1099-DA may help identify the category. Form 1099-B box 12 and Form 1099-DA box 2 also help indicate whether basis was reported to the IRS. Verify the statement rather than inferring the category only because a basis amount is displayed.
Use a separate Part I or Part II for each category. Check only one category box on each part and complete additional copies as needed. A category box at the top of the form is different from an adjustment code entered in column (f). For example, category box H concerns short-term digital assets with basis not reported, while adjustment code H concerns the exclusion of gain on a qualifying main-home sale.
Before you start
What Do You Need to Complete Form 8949?
Gather records that establish both what was reported by third parties and what is correct for the return:
- Every Form 1099-B, Form 1099-DA, Form 1099-S, Form 1099-K, and substitute brokerage statement that relates to a sale
- Trade confirmations, annual realized-gain reports, and transaction histories
- Digital-asset exchange, wallet, transfer, lot-identification, fee, and transaction-ID records
- Acquisition dates, disposition dates, units or shares, proceeds, and holding periods
- Original purchase price and acquisition costs
- Records of reinvested dividends, return-of-capital distributions, stock splits, mergers, gifts, inheritances, and other basis changes
- Wash-sale information from all relevant accounts and statements
- Prior workpapers for property received by gift, inheritance, exchange, or another nonpurchase method
- Documents supporting exclusions, deferrals, nondeductible losses, or other adjustment codes
- Copies of any statements that will be attached in place of transaction-by-transaction entries
Reconcile the gross proceeds from every statement to the transactions included in the return. Do not replace the taxpayer's records with a brokerage total when basis, dates, fees, or classification are incomplete.
Form walkthrough
How to Fill Out Form 8949
Classify transactions first, report each required transaction in columns (a) through (h), total each category, and transfer the totals to the matching Schedule D line. Preparing by category reduces the risk of mixing short-term, long-term, basis-reported, basis-not-reported, and digital-asset transactions.
Step 1: Separate transactions into categories
Determine short-term or long-term treatment, identify whether the asset is digital, and read the statement to determine whether basis was reported to the IRS. Create a separate Part I or Part II for each applicable category box.
Step 2: Complete columns (a) through (h)
| Column | What to report | Practical review point |
|---|---|---|
| (a) Description of property | Identify the asset. For stock, include the number of shares. For a digital asset, include its name or symbol, exact units, and transaction ID when available. | Make the entry specific enough to match the source record. |
| (b) Date acquired | Enter the acquisition date. Use INHERITED for inherited property when applicable and VARIOUS only when the IRS rules allow combined lots acquired on different dates. | Confirm that short-term and long-term lots are not combined on one part. |
| (c) Date sold or disposed of | Enter the disposition date. Exchange-traded stocks and bonds generally use the trade date. | Match the tax year and source statement. |
| (d) Proceeds | If an information statement was received, enter the proceeds shown on it. If none was received, generally enter net proceeds under the instructions. | Reconcile to Forms 1099 and avoid netting unrelated purchases against sales. |
| (e) Cost or other basis | Enter basis under the rules for the selected category. When basis was reported to the IRS but is wrong, repeat the reported basis here and correct it through columns (f) and (g). | Confirm acquisition costs and later basis adjustments. |
| (f) Code | Enter the adjustment code or codes when required. Most transactions leave columns (f) and (g) blank. | Put multiple codes in alphabetical order with no spaces or commas. |
| (g) Amount of adjustment | Enter the adjustment explained by column (f). Use parentheses for a negative amount. | Verify that the sign produces the intended gain or loss. |
| (h) Gain or loss | Calculate proceeds minus basis plus the adjustment. Use parentheses for a loss. | Recalculate independently and compare with the workpaper. |
The calculation is:
Column (d) proceeds minus column (e) basis plus column (g) adjustment equals column (h) gain or loss.
Step 3: Total each category and transfer it to Schedule D
Add columns (d), (e), (g), and (h) for each completed part. Transfer the totals to the Schedule D line shown beside the checked category box. Include totals from every Form 8949 copy used for the return.
Can multiple transactions be reported on an attached statement?
Yes. Under Exception 2, a taxpayer may attach a statement that contains the same information as Form 8949 Parts I and II in a similar format. Enter each broker's combined totals on the appropriate Form 8949 row, identify the attached statement in column (a), enter code M in column (f), and complete the applicable total columns. A statement cannot merely say that details are available upon request.
If a return is electronically filed but required transaction details are not reported separately on the electronic return, the filer generally must mail Form 8949 or a similar statement with Form 8453. Transactions qualifying for direct Schedule D reporting under Exception 1 do not need this attachment. Follow the tax software, return type, Form 8949 instructions, and Form 8453 instructions for the actual filing method.
Adjustment reference
Form 8949 Adjustment Codes
Column (f) explains why the gain or loss needs an adjustment, and column (g) reports the adjustment amount. Most ordinary transactions need neither column. Use the official instructions for the exact calculation and required supporting statements.
| Code | What it generally identifies |
|---|---|
| B | Basis shown on Form 1099-B or Form 1099-DA is incorrect |
| C | Disposition of a collectible |
| D | Accrued market discount reported on an information statement |
| E | Selling expenses, option premiums, or digital-asset transaction costs not reflected in reported proceeds or basis |
| H | Excludable gain from a qualifying main-home sale that must be reported |
| L | Nondeductible loss other than a wash-sale loss reported with code W |
| M | Multiple transactions summarized on one row under an allowed reporting method |
| N | Information statement received as nominee for the actual owner |
| O | Another adjustment not covered by a more specific code |
| P | Certain foreign taxpayers' sale or exchange of an interest in a partnership engaged in a U.S. trade or business |
| Q | Exclusion of eligible gain from qualified small business stock |
| R | Postponement of gain under an eligible rollover rule |
| S | Section 1244 stock loss exceeding the amount eligible for ordinary-loss treatment |
| T | Incorrect short-term, long-term, or ordinary classification on Form 1099-B or Form 1099-DA |
| W | Nondeductible wash-sale loss |
| X | Exclusion of eligible gain from certain DC Zone or qualified community assets |
| Y | Recognition of gain previously deferred through a qualified opportunity fund investment |
| Z | Election to defer eligible gain invested in a qualified opportunity fund |
If more than one code applies, enter the letters alphabetically without spaces or commas, such as BOQ. Enter the net effect of all adjustments in column (g). Because several codes involve specialized elections, exclusions, or ordinary-income reclassification, review the official instructions and related forms before filing.
Worked example
Form 8949 Example
Assume a taxpayer sold stock held for 3 months. Form 1099-B reports $10,000 of proceeds and $7,000 of basis, and indicates that basis was reported to the IRS. The taxpayer's records establish that the correct basis is $8,000 because an additional eligible cost was omitted from the reported basis.
The transaction is short term, so it belongs in Part I. Because Form 1099-B says basis was reported to the IRS, box A applies. The row would be completed as follows:
| Entry | Amount or treatment |
|---|---|
| Part and box | Part I, box A |
| Column (a) | Stock description and number of shares |
| Columns (b) and (c) | Actual acquisition and sale dates |
| Column (d) | $10,000 proceeds |
| Column (e) | $7,000 basis reported to the IRS |
| Column (f) | Code B |
| Column (g) | ($1,000) adjustment |
| Column (h) | $2,000 gain |
The calculation is $10,000 minus $7,000 plus ($1,000), which equals a $2,000 gain. If this is the only box A transaction, the category totals move to Schedule D line 1b.
The reporting changes when basis was not reported to the IRS. For a box B, E, H, or K transaction, the taxpayer generally enters the correct basis in column (e) and enters zero in column (g) for the basis correction itself, unless another adjustment is required. That distinction is why the basis-reporting indicator matters.
Special situations
Special Form 8949 Reporting Situations
How does cost basis affect Form 8949?
Basis is generally the taxpayer's investment in the asset for tax purposes, adjusted for relevant events. For purchased property, it commonly starts with purchase price and eligible acquisition costs. Reinvested distributions, stock splits, return of capital, improvements, depreciation, gifts, inheritances, exchanges, and other events can change basis.
For a covered transaction, enter the basis that was reported to the IRS in column (e), even if it is wrong, and use code B with the appropriate adjustment. For a noncovered transaction whose basis was not reported to the IRS, enter the correct basis in column (e). Keep records that establish both the reported amount and the correction.
How is a wash sale reported?
Use code W when a loss is nondeductible under the wash-sale rules and report the disallowed loss as a positive adjustment in column (g). The adjustment reduces the loss currently recognized and may affect the basis of replacement property.
Broker reporting may not capture every transaction across different accounts, spouses, or brokers. Reconcile the taxpayer's complete activity rather than relying solely on one statement. If a reported wash-sale amount is incorrect, follow the Form 8949 instructions for the correction and any required explanation.
How are digital asset transactions reported for 2025?
Report 2025 digital-asset sales and exchanges in boxes G through L, not boxes C or F. Digital assets are treated as property for federal income tax purposes, so a sale, an exchange for another digital asset, or use of a digital asset to acquire property can produce gain or loss.
Determine the holding period, identify whether Form 1099-DA or a substitute statement was received, and determine whether basis was reported to the IRS. Include the digital asset's name or symbol, exact units, and transaction ID when available in column (a). The basis generally includes acquisition cost and eligible transaction fees. Reconcile transfers between wallets or platforms so that a movement of the same asset is not mistakenly treated as a taxable sale.
For example, if an asset acquired for $1,000 is exchanged more than 1 year later for another digital asset worth $3,000, the transaction generally produces a $2,000 long-term gain. The appropriate category is J, K, or L based on Form 1099-DA receipt and basis-reporting status.
What if Form 1099-K reports a personal-item sale?
A gain on the sale of a personal capital asset is taxable and generally belongs on Form 8949. A personal loss is not deductible. If Form 1099-K reports a personal-item sale at a loss, the 2025 instructions permit an offsetting presentation either through Schedule 1 or Form 8949. When Form 8949 is used, code L and a positive adjustment bring column (h) to zero.
How is inherited property reported?
Inherited property is generally treated as long term, regardless of how long the heir held it. Enter INHERITED in column (b), use the appropriate Part II category, and determine basis under the inheritance rules. An appraisal, estate valuation, Schedule A (Form 8971), or other records may be relevant.
What other situations need specialist review?
Main-home exclusions, qualified small business stock, opportunity funds, installment sales, worthless securities, nonbusiness bad debts, options, collectibles, short sales, partnership-interest sales, and sales of business property can involve additional forms or calculations. Form 8949 may be part of the reporting, but it is not the entire analysis.
Return reporting
How Form 8949 Flows to Schedule D
After each Form 8949 category is totaled, transfer it to Schedule D as follows:
| Form 8949 category | Schedule D line |
|---|---|
| Short-term boxes A and G | 1b |
| Short-term boxes B and H | 2 |
| Short-term boxes C and I | 3 |
| Long-term boxes D and J | 8b |
| Long-term boxes E and K | 9 |
| Long-term boxes F and L | 10 |
Schedule D then combines those amounts with eligible transactions reported directly on lines 1a and 8a, capital gain distributions, pass-through items, carryovers, and other capital items. It determines the overall short-term and long-term results and applies the capital-loss limitation and carryover calculations.
For individuals, deductible net capital losses are generally limited to capital gains plus $3,000, or $1,500 for married filing separately, for the year. Unused losses may carry forward under the Schedule D rules. Form 8949 reports the underlying transactions but does not itself apply the tax rate, annual loss limit, or carryover.
Review checklist
Common Form 8949 Mistakes
- Treating every Form 1099-B or Form 1099-DA transaction as automatically requiring Form 8949
- Using box C or F for a 2025 digital-asset transaction instead of boxes G through L
- Choosing a box because basis appears on a statement without confirming whether it was reported to the IRS
- Mixing short-term and long-term transactions or different category boxes on the same part
- Checking more than one category box on a single Part I or Part II
- Entering corrected basis directly in column (e) when incorrect basis was reported to the IRS instead of using code B and column (g)
- Reversing the sign of a column (g) adjustment
- Separating multiple codes with spaces or commas
- Omitting sales because no Form 1099 was received
- Reporting a nondeductible personal loss as though it were an investment loss
- Forgetting transaction details or the Form 8453 process when summary statements are not transmitted with an electronic return
- Failing to reconcile proceeds, basis, wash sales, digital-asset transfers, and duplicate or missing transactions
- Sending totals to the wrong Schedule D line
Before filing, recalculate column (h), tie every category total to Schedule D, and reconcile all statement proceeds to the return. Document every basis or adjustment difference.
Filing guidance
When and How to File Form 8949
Form 8949 is filed with the Schedule D for the applicable return. Individuals generally attach both to Form 1040 or Form 1040-SR and file them as part of the complete federal income tax return. It is not ordinarily filed as a separate standalone return.
For most calendar-year individuals, the deadline for a 2025 return was April 15, 2026. A valid extension generally allowed filing through October 15, 2026, but did not extend the original time to pay. Disaster relief, overseas status, military service, fiscal-year filing, or another rule can change the deadline. Confirm the date through the IRS individual filing guidance.
Electronic filing is generally available. When transaction statements replace detailed electronic entries, follow the Form 8949 and Form 8453 instructions to determine whether a paper transmittal is required. Firms using Acculink's individual tax return support should retain the source reconciliation and workpapers used for every category total.
If an error in a previously filed Form 8949 changes the return, an individual generally uses Form 1040-X and includes corrected Schedule D and Form 8949 information as needed. Explain the change and follow the instructions for the amended return and affected tax year.
Filing questions
Form 8949 Frequently Asked Questions
Is Form 8949 required if I received Form 1099-B?
Not always. If basis was reported to the IRS, no adjustment or special treatment is needed, and the transaction meets all Exception 1 conditions, it may be summarized directly on Schedule D line 1a or 8a. Other Form 1099-B transactions generally require Form 8949.
What is the difference between Form 8949 and Schedule D?
Form 8949 lists and adjusts individual capital asset transactions by category. Schedule D receives the category totals, combines them with other capital items, and calculates the taxpayer's overall capital gain or loss.
What are Form 8949 boxes A, B and C?
For short-term non-digital transactions, box A generally means Form 1099-B basis was reported to the IRS, box B means it was not reported, and box C means no Form 1099-B or substitute statement was received. Digital assets use boxes G, H and I instead for 2025.
What is code B on Form 8949?
Code B identifies an incorrect basis on Form 1099-B or Form 1099-DA. If the incorrect basis was reported to the IRS, repeat that basis in column (e) and correct it through column (g). If basis was not reported to the IRS, generally enter the correct basis in column (e).
What is code M on Form 8949?
Code M indicates that multiple transactions are summarized on one row under an allowed method, usually with an attached statement containing the same transaction details as Form 8949. It is not permission to omit the supporting details.
Can I report stock sales without Form 1099-B?
Yes. A reportable capital asset sale does not become nontaxable because no Form 1099-B was received. Use the taxpayer's records to report the transaction, generally in box C for short-term or box F for long-term non-digital transactions.
Does cryptocurrency go on Form 8949?
Digital asset sales and exchanges that produce capital gain or loss commonly do. For 2025, use boxes G, H or I for short-term transactions and J, K or L for long-term transactions, based on statement receipt and basis-reporting status.
Can I summarize all trades instead of listing them separately?
Sometimes. Transactions qualifying for Exception 1 can be aggregated directly on Schedule D. Exception 2 can allow Form 8949 totals supported by a statement in a similar format. Each method has conditions, so summary reporting is not automatic.
How many Forms 8949 can I file?
Use as many copies as needed. Each Part I or Part II copy has only one category box checked and includes only transactions in that category. Include every copy's totals on Schedule D.
How do I calculate gain or loss on Form 8949?
Subtract column (e), cost or other basis, from column (d), proceeds, then add the adjustment in column (g). The result goes in column (h). A negative result is shown in parentheses.
Where can I download Form 8949?
Download the official 2025 Form 8949 PDF and official 2025 instructions from the IRS. Use the revision for the tax year being prepared.
When is Form 8949 due?
It is due with the income tax return to which Schedule D is attached. For most calendar-year individuals filing a 2025 return, that date was April 15, 2026, or October 15, 2026 with a valid filing extension. An extension to file does not extend the time to pay.
Related references
Related IRS Forms and Sources
Form or source; Why it matters
Important information
Important Tax Information Disclaimer
This page is for general educational purposes and is based on official IRS materials for tax year 2025 available as of September 5, 2026. It is not tax, legal, or investment advice. Tax rules and filing requirements can change, and the correct treatment depends on the taxpayer's facts, records, holding periods, basis, return type, and other transactions. Review current IRS instructions and consult a qualified tax professional before filing.
