Form 8949 Interactive
Learn where your investment sale belongs on Form 8949. Answer a few simple questions to identify the correct section, checkbox, adjustment code, and Schedule D line.
How long did you hold the investment?
Choose the holding-period category shown on your brokerage statement or determined from your purchase and sale dates.
Did you receive Form 1099-B or a substitute brokerage statement?
This helps determine which Form 8949 checkbox category may apply.
Was cost basis reported to the IRS?
Your Form 1099-B or brokerage statement usually states whether basis was reported to the IRS.
Does the transaction require an adjustment?
Choose the situation that best matches your transaction.
Form 8949 columns to review
📄 Choose the Correct Section
Find out whether your transaction belongs in Part I for short-term transactions or Part II for long-term transactions.
☑️ Find the Right Checkbox
Identify whether Box A, B, C, D, E, or F applies based on whether basis was reported to the IRS.
🔤 Understand Adjustments
See when an adjustment code may be needed for wash sales, incorrect basis, exclusions, or other changes.
What the Interactive Guide Will Ask
✅ Was the investment held for one year or less, or more than one year?
✅ Did you receive Form 1099-B or another brokerage statement?
✅ Was the cost basis reported to the IRS?
✅ Does the transaction require an adjustment?
✅ Was there a wash sale or another basis correction?
Short-Term Transactions
Assets held for one year or less generally belong in Part I of Form 8949.
Possible checkboxes:
Box C — No Form 1099-B received
Box A — Basis reported to the IRS
Box B — Basis not reported to the IRS
Long-Term Transactions
Assets held for more than one year generally belong in Part II of Form 8949.
Possible checkboxes:
Box F — No Form 1099-B received
Box D — Basis reported to the IRS
Box E — Basis not reported to the IRS
Understanding the Form 8949 Columns
Columns A–C
Enter the property description, purchase date, and sale date.
Columns D–E
Enter the sale proceeds and cost basis.
Columns F–G
Enter an adjustment code and adjustment amount when needed.
Column H
Calculate the final gain or loss after adjustments.
Form 8949 Example
Transaction
No adjustment is required
Bought 100 shares on January 10, 2025
Sold them on August 15, 2025
Received Form 1099-B
Basis was reported to the IRS
Where It Goes
Schedule D destination: Line 1b
Holding period: Short term
Form section: Part I
Checkbox: Box A
Adjustment code: None
Form 8949 is completed before the related totals are transferred to Schedule D.
Frequently Asked Questions
What is Form 8949 used for?
Form 8949 is used to report sales and exchanges of capital assets and reconcile information reported on forms such as Form 1099-B with the amounts reported on your tax return.
What is the difference between Part I and Part II?
Part I is generally used for short-term transactions. Part II is generally used for long-term transactions.
How do I know whether basis was reported to the IRS?
Your Form 1099-B or brokerage statement usually indicates whether cost basis was reported to the IRS.
What goes in columns F and G?
Column F contains the applicable adjustment code. Column G contains the amount of the adjustment.
Does every investment sale need to appear separately on Form 8949?
Not always. Certain transactions may be summarized directly on Schedule D when the applicable requirements are met, but transactions requiring adjustments generally need Form 8949 treatment.
Continue With Your Investment Taxes
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