What is Form 8949?
Form 8949 reports each sale or disposition of a capital asset — stocks, bonds, cryptocurrency, or other property. Each 1099-B transaction creates a corresponding 8949 entry categorized as A-F based on holding period (short-term vs. long-term) and basis reporting (covered vs. noncovered). Adjustment codes handle wash sales, market discount, and other modifications. Totals flow to Schedule D.
SupportedKey Lines
| Line | Description | Destination |
|---|---|---|
| Part I | Short-term transactions (categories A, B, C) | Schedule D Line 7 |
| Part II | Long-term transactions (categories D, E, F) | Schedule D Line 15 |
| Column (g) | Adjustments (wash sales Code W, etc.) | Modifies gain/loss |
How PaisaTax Handles It
- Slotted form — each 1099-B creates a mirrored 8949 slot automatically
- Categories assigned based on 1099-B Box 2 (short/long) and Box 12 (basis reported)
- Wash sale adjustments applied via Code W when flagged on 1099-B
- Aggregates to Schedule D Lines 7 (short-term) and 15 (long-term)
Common Situations
- Covered stock sales: Category A/D — basis reported to IRS, straightforward gain/loss calculation.
- Wash sale disallowed loss: Code W adjustment adds disallowed loss back to cost basis of replacement shares.
- Noncovered transactions: Category C/F — basis not reported to IRS, taxpayer must provide cost basis.