IRS Form 8949 walkthrough (Sales and Other Dispositions of Capital Assets)

[@olga_safronova-video]

Hi! Thank you for this valuable video. If I sold my apartment in another country should I fill out this 8949 form, or Schedule D for my 1040 will be enough? Thank you!

[@teachmepersonalfinance]

If you meet the criteria to exclude the capital gains from the sale of your primary residence (generally, you must have lived and owned it for 2 of the past 5 years, and you can exclude up to $250K of capital gains without reporting the sale on your tax return), then you don't need to report the transaction at all. If there's a portion that you cannot exclude, then you should complete this form. This form will then flow through to Schedule D (see below links for resources). IRS Schedule D, Capital Gains and Losses Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/ Video: kzbin.info/www/bejne/raGziZhur5ljors Playlist: kzbin.info/aero/PLYHzJrFFCrpx8fntib5MeAQ7xMEfvPVHZ

[@olga_safronova-video]

@@teachmepersonalfinance Thank you so much! Appreciate that. I've checked and I meet all the criteria. I transfered money from my county's bank account here in the US and I was thinking what if this funds will recognize as an income. I concern need I reflect this sum of money anythere on my Personal Tax Return?

[@bocean07]

I issued a private instrument to discharge a contractual agreement from my estate, can I use this As a schedule D for line 4 on a 1041?

[@WhereIsSchmitty]

What if I sold multiple crypto currencies? I understand I can total each one separately in form 8949 but what would I list as my sold and acquired dates ? There are various dates I bought and sold on, too many to list. Thank you

[@teachmepersonalfinance]

For any security that you purchased over multiple periods, the instructions state you can write 'VARIOUS' in the acquisition date, as long as you're able to calculate the tax basis (see video below for a walkthrough). For sales, you would have to list each transaction separately, so that you can report the amount of each sale. How to calculate the tax basis of your stock holdings (from IRS Publication 550): kzbin.info/www/bejne/o3OopKWZeqmob6c

[@glenandfriends9012]

How do you report losses on stocks whose value went to $0.00 when the company went belly up and never issued 1099-Bs? Apparently, cannot even manually modify Schedule D on HR BLOCK Deluxe + State it include the loss. Was on HR customer help line for 2 hours (disconnected) and again 45 mintues (got disconnected).

[@teachmepersonalfinance]

You would treat them as if you sold them for $0.00 on Form 8949. If it were a short-term loss, it would go on Part I of Form 8949 with Box C checked (wasn't reported to you on Form 1099-B). For a long-term loss, it would go on Part II, with Box F checked. Here's a link to an IRS page with more specific guidance. www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/losses-homes-stocks-other-property/losses-homes-stocks-other-property-1

[@susanolawale]

Can I use this form for all of my deposits to the bank account?

[@teachmepersonalfinance]

I don't see a reason why a taxpayer would use IRS Form 8949 to report bank deposits. Could you give me some more context about what you're trying to accomplish?

[@jamesmilton3490]

How do you describe a stock that has its CUSIP and its ticker symbol changed? Mine stock symbol was changed three times and CUSIP once.

[@teachmepersonalfinance]

I would probably go with the most recent one.

[@Jenny_Guerrier]

Hi! 🙂 I'm stuck on Line 2, box h. It says to substract negative amounts. Let's say I have a loss of -200 from one security and a loss of -500 from another. My first instinct would be to put -700 as the total loss in box h, Line 2. But the "substract negative amounts" instruction is throwing me off. When I follow the instruction, (-200) - (-500) = 300, which is a positive number and is of a lower numerical value than what I actually lost. Shouldn't it be - 200 - 500 = -700 for the total loss? Or is that what substracting negative amounts actually entail? In my mind, I'm actually adding them but keeping the negative sign, lol.

[@teachmepersonalfinance]

I don't believe the instructions say to subtract negative numbers. However, it's also easy to get lost in the calculations as described in the instructions. To use your example, you should *add* all numbers. Since you're adding the negative numbers (in parentheses), then you'll arrive at the correct answer. In your case, it would be (700), not +300.

[@Jenny_Guerrier]

@teachmepersonalfinance So, I did it correctly then. Thank you so much! 🙂 But seriously, they do say to subtract negative amounts, haha. Here's the instructions, literally copied and pasted 👇🏾 *2 Totals.* Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked)

[@Jenny_Guerrier]

Again, thanks for the help!

[@eviloctober]

So if you day trade and you buy and sold let's say... 200 different ticker symbols you need to have a 8949 for each ticker?

[@teachmepersonalfinance]

Not necessarily, but you may need to report each transaction (each form can hold around 14-15 of each type of transaction). You can also attach a statement with a list of all transactions, as long as the statement contains the same type of information as on the form itself.

[@h.jnguyen2939]

What if I have more than one brokerage account and I buy the same shares in a different account at a different time and price? And other shares bought/sold like that as well. So, do I have to detail all the transactions on form 8949? If so, is there any way to make it faster and easier? Can I upload Form 1099-B from the brokerage account to the tax software to automate it to schedule D? Thank you and I hope to have a good method to solve the challenges.

[@teachmepersonalfinance]

Without knowing the tax software that you're using, I'm not sure how you can make this faster. It does seem that most tax prep softwares do allow you to import transactions from Form 1099-B.

[@teachmepersonalfinance]

Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.com/irs-form-8949-instructions/ If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmepersonalfinance.com/free-fillable-tax-forms/

[@Dsuji245]

I read it.very clear. I just wondered whether I can do this. I got 1099-B with box a checked in short term gain. Charles Schwab calculate my base is 54,274. But when I bought the portfolio, I put 60,000 . Can I adjust the base Enter code B in (f) and (g) (5725?

[@teachmepersonalfinance]

@@Dsuji245 You can do this, but you should double-check your records to make sure that an IRS examiner would agree with you. I can't tell the exact nature of your transactions, but if you started the account with $60,000 and invested $54,274, then your basis would be $54,274, not $60,000. But if your brokerage firm actually got the details of your basis wrong, you should be able to verify this on your own by using your brokerage statements and transactions history to support your case.

[@Dsuji245]

@@teachmepersonalfinance Hi, thank you very much for your detailed answer. I am not going to do that. I have a question that really need a help. I just found out I have 1099- B from 2022. capital loss 9000. I didn't claim it. How can I carry over if I forgot to claim it last year? Or I have to file a 1040X to claim it? The accountant in my area all don't take new clients any more. I do my own tax , apparently I missed the loss that I should claim on 2022. Greatly appreciate your help!

[@teachmepersonalfinance]

@@Dsuji245 If you have a capital loss from 2022, but you did not claim in on your income tax return, then you should file IRS Form 1040-X to include that capital loss. If there is any remaining capital loss from your 2022 tax return, then you could use that to offset any gains from your 2023 tax return. What you should not do is simply claim the capital loss against this year's tax return.

[@Dsuji245]

Thanks a million! It is a great help. Very much appreciate your clear answer. I am filling 1040X now.

[@carlasimonson]

How do I fill out form when only 576 sf for Eminent domain

[@teachmepersonalfinance]

I'm not sure that I understand your question. Are you asking how to fill out the form if your house was purchased through eminent domain? Can you give me some more information?

[@jonasdescheemaeker1041]

hi, I started an expensive course. A friend said i can use 8949, to get the investment back. do i have to write my bank account n°, and if so where?

[@teachmepersonalfinance]

I'm not sure that you can use IRS Form 8949 to get your money back because you started an expensive course. Could you explain this situation in more detail?

[@jonasdescheemaeker1041]

hi, thanks for the response, yes, sure, but maybe we go private for this... where can i write you?

[@teachmepersonalfinance]

@@jonasdescheemaeker1041 You can find out more about how I work with clients here: www.teachmepersonalfinance.com/work-with-me/

[@thinkblue8089]

My form 8949 that I printed out from coinbase says to subtract column d from column e to get my gain or loss for column h. I think this is wrong.

[@teachmepersonalfinance]

Instead of focusing on the column, I would focus on the transaction itself. If the proceeds (usually reported in Column D) are greater than the cost or other basis (usually reported in Column E), then you'll have a gain. If it's less, then you'll have a loss. You also would need to add back (or subtract) any adjustments in Column G.

[@thinkblue8089]

@@teachmepersonalfinance Got it. I just don't know why they would give wrong directions on the form. Do fees that I paid for the transaction go in column G? How do I find the fees I paid?

[@MichaelStrickland-h9m]

could you explain on short sales what the difference is between "enter the date you delivered the stock or property to the broker or lender to close the short sale." and "enter the date you acquired the stock or property delivered to the broker or lender to close the short sale"

[@teachmepersonalfinance]

Sure. Enter the date you delivered the stock or property to the broker or lender to close the short sale: This means the date that you disposed of it. Enter the date you acquired the stock or property delivered to the broker or lender to close the short sale: This means the date you acquired it.

[@MichaelStrickland-h9m]

@@teachmepersonalfinance thank you for your time. is this not the same date though if you are acquiring the stock or option to close a short sale?

[@MichaelStrickland-h9m]

@@teachmepersonalfinance I mean if you are buying it back within the brokerage doesn't it occur automatically (the brokerage handles it) to close the short sale?

[@teachmepersonalfinance]

@@MichaelStrickland-h9m There's the date that you shorted the stock, and the date that you bought it back. They can be two different dates.

[@MichaelStrickland-h9m]

@@teachmepersonalfinanceAre you saying this ("Enter the date you delivered the stock or property to the broker or lender to close the short sale: ") is the date you shorted it and this ("Enter the date you acquired the stock or property delivered to the broker or lender to close the short sale: ") is the date you bought it back?

[@SanataniHindu81]

what if I have losses more than 3000 in a year. Should I show full losses in both forms or 8949 only or Schedule D Only, or I should show only upto 3k in both forms or 8949 only or Schedule D Only ??

[@teachmepersonalfinance]

You would carry your full numbers from Form 8949 onto Schedule D. From Schedule D, you'll calculate your current year deduction as well as any carryover to other tax years. You'll carryover the loss (or the allowable $3,000 loss) from Line 21 on Schedule D to Line 7 of your Form 1040. Below are some resources on Schedule D that might be beneficial: IRS Schedule D, Capital Gains and Losses Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/ Video: kzbin.info/www/bejne/raGziZhur5ljors Playlist: kzbin.info/aero/PLYHzJrFFCrpx8fntib5MeAQ7xMEfvPVHZ

[@ihabsraj]

Do you treat 1099-S same as 1099-B when choosing between Boxes A, B or C ?

[@teachmepersonalfinance]

In general, you would report this in a similar manner.

[@KarenPluth]

So what box does he check? I sold a piece of land for a profit and have no losses. I got a 1099s form. 8949 boxes d, e, and f only mention 1099b forms, which I don’t have. What box do I check? And do I have to even fill out 8949 or Schedule D? Thanks. This is driving me crazy. ​​⁠@@teachmepersonalfinance

[@tomasgonzalez3998]

I have a capital gain of $$10,000 from the sale of investment properties, and I have a loss of $20,000 from Stock options/futures contract. How can I offset the capital gain with the loss? Can it be over $3000?

[@teachmepersonalfinance]

Probably, but it might not be on IRS Form 8949. Depending on the circumstances, it might be on Schedule D (depending on whether you're deferring part or all of the gain into a QOF, for example). Let's imagine that you calculated the loss from your options or futures contract on IRS Form 6781. Generally, losses and gains calculated on Form 6781 are reported on Schedule D if they're not transferred to Form 8949. On Schedule D, you have the opportunity to net long-term and short-term gains vs. losses against each other. If you end up with a net loss (as it appears), then you would be able to deduct up to $3,000 per year against ordinary income. Any loss that is not allowed in the current year can be carried forward, where you can deduct it against future gains or ordinary income ($3,000 per year). IRS Form 6781, Gains and Losses From Section 1256 Contracts and Straddles: Article: www.teachmepersonalfinance.com/irs-form-6781-instructions/ Video: kzbin.info/www/bejne/f6rFmHywaah4mLs IRS Schedule D, Capital Gains and Losses Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/ Video: kzbin.info/www/bejne/raGziZhur5ljors Playlist: kzbin.info/aero/PLYHzJrFFCrpx8fntib5MeAQ7xMEfvPVHZ

[@Dsuji245]

I want to know (f) (g) and (h) . If I have an accountant to talk, I don't need to watch this video.

[@teachmepersonalfinance]

Great! Our article breaks down what you need to know for (f) (g) and (h). Check it out! www.teachmepersonalfinance.com/irs-form-8949-instructions/

[@Dsuji245]

Thank you very much.

[@uchihasasuke078]

Hello sir! Thanks for providing some valuable information. I'm filing my tax papers through sprintax. There I couldn't find the 8949 form. From webull I have received the 8949 form. So should I just fill up the 8949 and send with my other 1099, 1042S forms? Or Do I need to add the cryptocurrency information on 1099 and also in 8949?

[@teachmepersonalfinance]

I'm not sure that I understand your question, but I'll try to address it. You should enter all the transactions that were reported to you on Form 1099 or Form 1042-S on IRS Form 8949. Before sending off your tax return, you should double check to make sure that the Form 8949 is properly feeding this information to your Schedule D, then to your Form 1040 (or Form 1040-NR)?

[@uchihasasuke078]

​@@teachmepersonalfinanceI still have some confusion. 1. I'm a student here, I filled in a 1042-s form. Do I need to add this information on 8949 form as well? 2. Or do I have to add only those information on 8949 which are mentioned by the webull document (*there transaction should be reported on form 8949 part .....)? 3. For the dividend, should I only file 1099-div or I have to put these on 8949 as well? Sorry for my ignorance.

[@teachmepersonalfinance]

@@uchihasasuke078 Without being able to look at your documents, I'm afraid that I can't give you much advice. I think you should review these tax documents with a tax professional in your area to decide the best course of action.