Updated October 2, 2026. Quick answer: Form 8949 lists each sale of a capital asset so the IRS can match it to the Form 1099-B your broker sent. Short-term sales go in Part I and long-term sales in Part II, with a box (A to L) chosen by whether basis was reported to the IRS. Proceeds go in column (d), basis in (e), any correction in (g) with a code in (f), and gain or loss in (h). The totals then flow to Schedule D.
IRS worksheets read line by line: Pub 523 Worksheet 2 and Pub 523 Worksheet 3.
Related reading on this site: IRS Publication 544.
More IRS forms and schedules for individual filers, read line by line: Form 8828 instructions and Form 6781 instructions.
Related reading on this site: IRS Publication 550.
Read box by box from the IRS form text: Form 1099-LS boxes 1 and 2.
Form lines read one part at a time: Form 4684 Section A, Form 4684 Section B Part II and Form 4684 Sections C and D.
S corporation return (Form 1120-S) for 2025, read line by line: Form 1120-S lines 7 to 12, Form 1120-S Schedule B questions 6 to 11 and Form 1120-S Schedule B questions 13 to 16.
Partnership return (Form 1065) for 2025, read line by line: Form 1065 lines 11 to 14, Form 1065 Schedule B questions 7 to 12 and Form 1065 Schedule B questions 25 to 33.
IRS worksheets read line by line: Capital Loss Carryover Worksheet.
IRS worksheets from the 2025 Form 1040 instructions, read line by line: Schedule D Tax Worksheet.
Sales of business property (Form 4797), passive activity losses (Form 8582) and depreciation (Form 4562) for 2025, read line by line: Form 4797 line 10, Form 4797 lines 19 to 24 and Form 8582 Part VIII.
Foreign tax credit (Form 1116) and alternative minimum tax (Form 6251) for 2025, read line by line: Form 1116 lines 15 to 19, Form 6251 lines 2d to 2h and Form 6251 Part III.
Schedule D and Schedule E (Form 1040) for 2025, read line by line: Schedule D lines 1b, 2 and 3, Schedule D lines 6 and 7 and Schedule D lines 8b, 9 and 10.
Form 8949 for 2025, read code by code: Form 8949 boxes A to L, Form 8949 code B, Form 8949 code D, Form 8949 code E, Form 8949 code H, Form 8949 code L, Form 8949 code M, Form 8949 code N, Form 8949 code O, Form 8949 code Q, Form 8949 code R, Form 8949 code S, Form 8949 code T, Form 8949 code W, Form 8949 code X, Form 8949 code Y and Form 8949 code Z.
Read box by box from the IRS form text: Form 1099-DA box 1g, Form 1099-DA boxes 1h and 1i and Form 1099-DA boxes 2 and 9.
More IRS forms and schedules, read line by line: Form 8886 instructions and Form 8275 instructions.
The recipient copy of Form 1099-NEC or 1099-MISC, read box by box: 1099-MISC box 8.
More IRS forms and schedules, read line by line: Form 7203 instructions.
The shareholder’s Schedule K-1 (Form 1120-S), boxes 13 to 19: Schedule K-1 box 16 and Schedule K-1 box 17 codes K to O.
The shareholder’s Schedule K-1 (Form 1120-S), read box by box: Schedule K-1 boxes 7 and 8 and Schedule K-1 box 10.
The partner’s Schedule K-1 (Form 1065), read box by box: Schedule K-1 box 11, Schedule K-1 box 16 and Schedule K-1 box 20 O and P.
More IRS forms and schedules, read line by line: Form 6252 instructions.
More IRS forms and schedules, read line by line: Form 1099-S instructions.
The IRS form or worksheet behind this, read line by line: Form 4797 instructions and Form 8824 instructions.
Price a sale against the 2026 capital gains rates: capital gains tax calculator.
What Form 8949 is for
The instructions state the purpose first: “Use Form 8949 to report sales and exchanges of capital assets.” Its job is a reconciliation: “Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statements) with the amounts you report on your return.”
The rule for the numbers on a 1099-B follows from that: “always report the proceeds (sales price) shown on the form (or statement) in column (d) of Form 8949.” Corrections do not overwrite the form figures: “If any correction or adjustment to these amounts is needed, make it in column (g).” The broker side of this is covered on the Form 1099-B proceeds and cost basis page.
Parts I and II and boxes A to L
“Report short-term gains and losses on Part I. Report long-term gains and losses on Part II.” Within each part, the box depends on how the transaction was reported to you. “Check only one box on each Part I.” If several boxes apply, the form says to use a separate copy of the page for each one.
| Box | Where it goes | What it describes (from the 2025 form) |
|---|---|---|
| A | Part I, short-term | Form 1099-B shows basis was reported to the IRS |
| B | Part I, short-term | Form 1099-B shows basis was not reported to the IRS |
| C | Part I, short-term | No Form 1099-B or 1099-DA, other than digital asset transactions |
| D | Part II, long-term | Form 1099-B shows basis was reported to the IRS |
| E | Part II, long-term | Form 1099-B shows basis was not reported to the IRS |
| F | Part II, long-term | No Form 1099-B or 1099-DA, other than digital asset transactions |
| G, H, I | Part I, short-term | The same three cases for Form 1099-DA and digital assets |
| J, K, L | Part II, long-term | The same three cases for Form 1099-DA and digital assets |
The box wording above is condensed from the printed form. For Part I, the instructions say box A or G covers transactions with “an amount shown for cost or other basis unless the statement indicates that amount wasn’t reported to the IRS.” Box B or H is for the ones “without an amount shown for cost or other basis or showing that cost or other basis wasn’t reported to the IRS.” Digital assets have their own boxes: “Do not use box C to report digital asset transactions. Use box I.”
Columns (a) to (h), left to right
Columns (b) and (c) use the trade date for listed securities. For the date acquired, the IRS says to “Enter the trade date for stocks and bonds you purchased on an exchange or over-the-counter market.” The date sold works the same way: “Use the trade date for stocks and bonds traded on an exchange or over-the-counter market.”
Column (h) is arithmetic: “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 instructions give a worked case: “Column (d) is $6,000, column (e) is $2,000, and column (g) is ($1,000). Enter $3,000 in column (h).”
Two formatting rules matter. “Enter negative amounts in parentheses.” And if more than one code applies on a row, “enter the net adjustment in column (g).”
Adjustment codes, including W and B
Most rows need no code. The IRS puts it this way: “For most transactions, you don’t need to complete columns (f) and (g) and can leave them blank.” The codes that come up most for stock sales are below.
| Code in column (f) | When it applies | What goes in column (g) |
|---|---|---|
| B | The basis in box 1e of Form 1099-B is incorrect | Correct basis in column (e) if not reported to the IRS; adjustment in column (g) if it was |
| E | Selling expenses or option premiums not reflected on the form | Expense as a negative number in column (g) |
| L | A nondeductible loss other than a wash sale loss | Loss as a positive number in column (g) |
| T | The gain or loss type in box 2 is incorrect | Report on the correct part, with -0- in column (g) if nothing else needs adjusting |
| W | A nondeductible loss from a wash sale | Disallowed loss as a positive number in column (g) |
| O | An adjustment not explained by another code | Appropriate adjustment amount in column (g) |
For code W, the instruction is direct: “Report the sale or exchange on Form 8949 and enter the amount of the nondeductible loss as a positive number in column (g).” The mechanics of the rule itself are on the wash sale rule page. When the loss is not a wash sale at all, the instructions say “If no part of the loss is a nondeductible loss from a wash sale transaction, enter -0- in column (g).”
Wrong basis on the 1099-B: code B
Code B has two paths. When the basis was reported to the IRS, “enter the basis shown on Form 1099-B or Form 1099-DA (or substitute statement) in column (e), even though that basis is incorrect. Correct the error by entering an adjustment in column (g).” When it was not reported, the correct basis goes straight into column (e) with -0- in column (g).
The instructions work an example: stock sold for $1,000 with a correct basis of $100 and a Form 1099-B showing $900 as reported basis. The adjustment is $800 in column (g) with code B, and the IRS says “Your gain is $900 ($100 + $800).” The source for the box 1e figure is explained on the box 1d and 1e page.
How the totals reach Schedule D
“Complete Form 8949 before you complete lines 1b, 2, 3, 8b, 9, or 10 of Schedule D.” Each part total carries to a specific line, and the instructions add a check: “The total of the amounts in column (h) of line 2 of all your Forms 8949 should equal the amount you get by combining columns (d), (e), and (g) on the corresponding line of Schedule D (Form 1040).”
Some sales can skip the form. “Form 8949 isn’t required for certain transactions.” Those are 1099-B sales with reported basis and no adjustments, which go as summary lines 1a and 8a of Schedule D. See the Schedule D page for the next step.
Which revision applies
The edition read for this page is the 2025 Form 8949 and its instructions, which are the revision the IRS served when this was read on 2026-10-02 and which apply to returns filed in 2026. A later revision can change line numbers or box wording, so check the revision on the form you are filling in. “For the latest information about developments related to Form 8949 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form8949.”
Common mistakes
- Entering a corrected basis in column (e) when the broker reported the basis to the IRS. In that case column (e) keeps the reported figure and the fix goes in column (g).
- Putting a wash sale loss in column (g) as a negative number. The code W adjustment is positive.
- Mixing boxes on one page. Each Part I or Part II page takes one box.
Related: Schedule D (Form 1040), the wash sale rule, Form 1099-B box 1g, and tax loss harvesting.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for taxable accounts
If you are in the U.S. and your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor fits your investing
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Instructions for Form 8949 (2025): https://www.irs.gov/pub/irs-pdf/i8949.pdf
- Form 8949 (2025): https://www.irs.gov/pub/irs-pdf/f8949.pdf
Read from the IRS documents linked above on October 2, 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.