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Form 8949 Code R: Rollover of Gain and Column (g) (2025)

Updated October 17, 2026. Quick answer: Code R goes in column (f) of Form 8949 when you elect to postpone gain under a rollover rule, such as the rollover of gain from qualified small business stock. You report the sale as if you were not making the election, then enter the postponed gain as a negative number in column (g).

What code R means

The column (f) table describes code R this way: “You are electing to postpone all or part of your gain under the rules explained in the Schedule D instructions for any rollover of gain (for example, rollover of gain from QSB stock)”. The instruction beside it is “Report the sale or exchange on Form 8949 as you would if you weren’t making the election. Then enter the amount of postponed gain as a negative number (in parentheses) in column (g).”

The Schedule D instructions give the QSB stock rollover as the worked case, so the rest of this page follows it.

The QSB stock rollover rule

The Schedule D instructions say “If you sold QSB stock (defined earlier) that you held for more than 6 months, you can elect to postpone gain if you buy other QSB stock during the 60-day period that began on the date of the sale.”

Publication 550 puts it in plainer terms: “This means that, if you buy certain replacement stock and make the choice described in this section, you postpone part or all of your gain.” It adds “This postpones your gain until the year you dispose of the replacement stock.” What counts as QSB stock is on the QSBS requirements page.

Gain you still recognize

A rollover can be partial. The Schedule D instructions say “You must recognize gain to the extent the sale proceeds are more than the cost of the replacement stock.” They continue “Reduce the basis of the replacement stock by any postponed gain.” Publication 550 adds “Your holding period for the replacement stock includes your holding period for the stock sold, except for the purpose of applying the 6-month holding period requirement for choosing to roll over the gain on its sale.”

What to enter in column (g)

The Schedule D instructions give the filing steps: “To make the election, report the sale in Part I or Part II (depending on how long you, or the passthrough entity, if applicable, owned the stock) of Form 8949 as you would if you weren’t making the election.” Then “Enter the amount of the postponed gain as a negative number in column (g). Put it in parentheses to show it is negative.” The instructions finish with “Complete all remaining columns.” Form 8949 boxes A to L explains how the box at the top is chosen.

The election has a deadline: “You must make the election no later than the due date (including extensions) for filing your tax return for the tax year in which the QSB stock was sold.” For a return already filed, “If your original return was filed on time, you can make the election on an amended return filed no later than 6 months after the due date of your return (excluding extensions).”

Where it goes next

Column (h) is figured one row at a time. The instructions say “Figure gain (or loss) on each row. First, subtract the cost or other basis in column (e) from the proceeds (sales price) in column (d). Then take into account any adjustments in column (g).” The form’s own column heading says the same: “Subtract column (e) from column (d) and combine the result with column (g).”

The rows then roll up to Schedule D. The instructions say “Include on your Schedule D the totals from all your Parts I and II.” and “Complete Form 8949 before you complete lines 1b, 2, 3, 8b, 9, or 10 of Schedule D.” The overview is on Form 8949 instructions.

Edition and line numbers

This page reads the 2025 Form 8949 and its 2025 instructions, along with the 2025 Instructions for Schedule D (Form 1040) and the 2025-returns edition of Publication 550, the current files irs.gov served on 2026-10-17. They are the forms for the tax year 2025 return, filed in 2026. Check the tax year printed on the form you are filling in and use the column letters and codes on that year’s form, because a different year’s form can word its columns and codes differently.

Common mistakes

  • Entering the postponed gain as a positive number. The instruction is to enter it “as a negative number (in parentheses) in column (g).”
  • Reducing the proceeds for the rollover. The instruction is to “Report the sale or exchange on Form 8949 as you would if you weren’t making the election.”
  • Missing the replacement window. The Schedule D instructions allow the election if you “buy other QSB stock during the 60-day period that began on the date of the sale.”

Related: QSBS qualification requirements, QSBS five year holding period, Schedule D, and Form 8949 instructions.

Sources

Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.

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