U.S. Individual Income Tax Return Forms

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2025

Instructions for Form 8949
Sales and Other Dispositions of Capital Assets
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
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.

What’s New

New codes J, K, and L for long-term digital asset transactions. Use code J, K, or L to report long-term digital asset
transactions. Do not use code F to report long-term digital asset
transactions. Codes J, K, and L will apply to Part II of Form 8949.
Election to pay tax on farmland sale or exchange in installments. If you sold or exchanged farmland to a qualified farmer
after July 4, 2025, you can elect to pay the net income tax liability
on the sale or exchange in four equal installments. For more
information, see the instructions for Schedule 2 (Form 1040) and
Schedule 3 (Form 1040). Also see Form 1062 and its
instructions.

General Instructions
File Form 8949 with the Schedule D for the return you are filing.
This includes Schedule D of Forms 1040, 1040-SR, 1041, 1065,
8865, 1120, 1120-S, 1120-C, 1120-F, 1120-FSC, 1120-H,
1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL,
1120-REIT, 1120-RIC, 1120-SF, and certain Forms 990-T.

Individuals. Individuals use Form 8949 to report the following.
• The sale or exchange of a capital asset reported on a Form
1099-K, Form 1099-B, or Form 1099-DA.
• Gain or loss on the sale or exchange by a nonresident alien
individual of an interest in a partnership that is engaged in a U.S.
trade or business.
• The sale or exchange of a capital asset not reported on
another form or schedule.
• Gains from involuntary conversions (other than from casualty
or theft) of capital assets not used in your trade or business.
• Nonbusiness bad debts.
• Worthlessness of a security.
• The election to defer capital gain invested in a qualified
opportunity fund (QOF).
• The disposition of interests in QOFs.
• To elect out of the installment method.
If you are filing a joint return, complete as many copies of
Form 8949 as you need to report all of your and your spouse's
transactions. You and your spouse may list your transactions on
separate forms or you may combine them. However, you must
include on your Schedule D the totals from all Forms 8949 for
both you and your spouse.

Use Form 8949 to report sales and exchanges of capital assets.
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. If you receive Form 1099-B,
Form 1099-DA, or Form 1099-S (or substitute statements),
always report the proceeds (sales price) shown on the form (or
statement) in column (d) of Form 8949. If Form 1099-B or Form
1099-DA (or substitute statement) shows that the cost or other
basis was reported to the IRS, always report the basis shown on
that form (or statement) in column (e). If any correction or
adjustment to these amounts is needed, make it in column (g).
See How To Complete Form 8949, Columns (f) and (g), later, for
details about these adjustments.

Corporations and partnerships. Corporations and
partnerships use Form 8949 to report the following.
• The sale or exchange of a capital asset not reported on
another form or schedule.
• Gain or loss on the sale or exchange by a foreign corporation
of an interest in a partnership that is engaged in a U.S. trade or
business.
• Sale of stock of a specified 10%-owned foreign corporation,
adjusted for the dividends-received deduction under section
245A, but only if the sale would otherwise generate a loss.
• Nonbusiness bad debts.
• Undistributed long-term capital gains from Form 2439.
• Worthlessness of a security.
• The election to defer capital gain invested in a QOF.
• The disposition of interests in QOFs.
Corporations also use Form 8949 to report their share of gain
(or loss) from a partnership, estate, or trust.
For corporations and partnerships meeting certain criteria, an
exception to some of the normal requirements for completing
Form 8949 has been provided. See Special provision for certain
corporations, partnerships, securities dealers, and other
qualified entities under the instructions for line 1, later.

If all Forms 1099-B or Forms 1099-DA (or all substitute
statements) you received show basis was reported to the IRS
and no correction or adjustment is needed, you may not need to
file Form 8949. See Exception 1 under the instructions for line 1,
later.

Estates and trusts. Estates and trusts use Form 8949 to report
the following.
• Gain or loss on the sale or exchange by a foreign trust or
estate of an interest in a partnership that is engaged in a U.S.
trade or business.

Complete Form 8949 before you complete lines 1b, 2, 3, 8b, 9, or
10 of Schedule D.

Purpose of Form

Oct 15, 2025

Instructions for Form 8949 (2025) Catalog Number 59421Z
Department of the Treasury Internal Revenue Service www.irs.gov

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New codes G, H, and I for short-term digital asset transactions. Use code G, H, or I to report short-term digital asset
transactions. Do not use code C to report short-term digital asset
transactions. Codes G, H, and I will apply to Part I of Form 8949.

If you received Schedule A (Form 8971) for property and Part
II, column (f), of Schedule A (Form 8971) indicates that the
property increased the estate tax liability, you will be required to
report a basis consistent with the final estate tax value of the
property reported in Part II, column (h), of the schedule. See
Schedule A (Form 8971)—Consistent basis reporting under
Column (e)—Cost or Other Basis, later, for more information on
consistent basis reporting and the amount you will report on
Form 8949.

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Schedule D. Use Schedule D for the following purposes.
• To figure the overall gain (or loss) from transactions reported
on Form 8949.
• To report a gain from Form 6252 or Part I of Form 4797.
• To report a gain (or loss) from Form 4684, 6781, or 8824.
• To report capital gain distributions not reported directly on
Form 1040 or 1040-SR, line 7a (or effectively connected capital
gain distributions not reported directly on Form 1040-NR,
line 7a).
• To report a capital loss carryover from the previous tax year to
the current tax year.
• To report your share of a gain (or loss) from a partnership, S
corporation, estate, or trust. (However, corporations report this
type of gain (or loss) on Form 8949.)
• To report certain transactions you don't have to report on Form
8949, such as transactions reported to you on a Form 1099-B or
Form 1099-DA (or substitute statement) showing basis was
reported to the IRS and for which you have no adjustments, as
explained under Exception 1, later.
Individuals, estates, and trusts also use Schedule D to report
undistributed long-term capital gains from Form 2439.
Additional information. See the instructions for the
Schedule D you are filing for detailed information about other
topics, including the following.
• Other forms you may have to file.
• The definition of capital asset.
• Certain digital assets, such as Bitcoin. Also, see the
Instructions for Form 1040 and IRS.gov/VirtualCurrencyFAQs.
• Reporting capital gain distributions, undistributed capital
gains, the sale of a main home, the sale of capital assets held for
personal use, or the sale of a partnership interest.
• Capital losses, nondeductible losses, and losses from wash
sales.
• Traders in securities.
• Short sales.
• Gain or loss from options.
• Installment sales.
• Demutualization of life insurance companies.
• Exclusion or rollover of gain from the sale of qualified small
business (QSB) stock.
• Any other rollover of gain.
• Exclusion of gain from the sale or exchange of DC Zone
assets or qualified community assets.
• Deferral of gain invested in a QOF.
• Certain other items that get special treatment.
• Special reporting rules for corporations, partnerships, estates,
and trusts in certain situations.
For more information about reporting on Forms 6252, 4797,
4684, 6781, and 8824, see the instructions for those forms. See
Pub. 544 and Pub. 550 for more details.

Basis and Recordkeeping

Basis is the amount of your investment in property for tax
purposes. The basis of property you buy is usually its cost. You
need to know your basis to figure any gain (or loss) on the sale
or other disposition of the property. You must keep accurate
records that show the basis and, if applicable, adjusted basis of
your property. Your records should show the purchase price,
including commissions; increases to basis, such as the cost of
improvements; and decreases to basis, such as depreciation,
nondividend distributions on stock, and stock splits.
2

The basis of a digital asset is the cost to acquire the digital
asset, including transaction fees, commissions, transfer taxes,
and other acquisition costs.
For more information on basis, see Column (e)—Cost or
Other Basis, later, and the following publications.
• Pub. 550, Investment Income and Expenses.
• Pub. 551, Basis of Assets.
If you lost or didn't keep records to determine your basis in
securities, contact your broker for help. If you receive a Form
1099-B or Form 1099-DA (or substitute statement), your broker
may have reported your basis for these securities in box 1e on
Form 1099-B or box 1g on Form 1099-DA.
The IRS partners with companies that offer Form 8949
software that can import trades from many brokerage
firms and accounting software that can help you keep
track of your adjusted basis in securities. To find out more, go to
IRS.gov/Efile.

Short-Term or Long-Term

Separate your capital gains and losses according to how long
you held or owned the property.
The holding period for short-term capital gains and losses is
generally 1 year or less. Taxpayers that hold certain partnership
interests in connection with the performance of services may be
subject to different holding period rules. See the Schedule D
instructions for more information. Report these transactions on
Part I of Form 8949 (or line 1a of Schedule D if you can use
Exception 1 under the instructions for line 1, later).
The holding period for long-term capital gains and losses is
generally more than 1 year. Taxpayers that hold certain
partnership interests in connection with the performance of
services may be subject to different holding period rules. See the
Schedule D instructions for more information. Report these
transactions on Part II of Form 8949 (or line 8a of Schedule D if
you can use Exception 1 under the instructions for line 1, later).
To figure the holding period, begin counting on the day after
you received the property and include the day you disposed of it.
Generally, if you disposed of property that you acquired by
inheritance, report the disposition as a long-term gain (or loss)
regardless of how long you held the property.
A nonbusiness bad debt must be treated as a short-term
capital loss. See Pub. 550 for what qualifies as a nonbusiness
bad debt and how to enter it on Part I of Form 8949.
Form 1099-B or Form 1099-DA. If you received a Form
1099-B or Form 1099-DA (or substitute statement) for a
transaction, box 2 on Form 1099-B or box 6 on Form 1099-DA
may help you determine whether your gain (or loss) is short term,
long term, or subject to special rules. If box 2 on Form 1099-B or
box 6 on Form 1099-DA is blank and code X is in the "Applicable
checkbox on Form 8949" box near the top of Form 1099-B or
Form 1099-DA, your broker doesn't know whether your gain (or
loss) is short term or long term. Use your own records to
determine whether your gain (or loss) is short term or long term.

Corporation's Gains and Losses From
Partnerships, Estates, or Trusts

Report a corporation's share of capital gains and losses from
investments in partnerships, estates, or trusts on the appropriate
part of Form 8949. Report a net short-term capital gain (or loss)
on Part I with box C or box I checked and a net long-term capital
gain (or loss) on Part II with box F or box L checked. In column
(a), enter “From Schedule K-1 (Form 1065)” or “From
Schedule K-1 (Form 1041),” whichever applies; enter the gain (or
loss) in column (h); and leave all other columns blank.
Instructions for Form 8949 (2025)

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• The sale or exchange of a capital asset not reported on
another form or schedule.
• Nonbusiness bad debts.
• Worthlessness of a security.
• The election to defer capital gain invested in a QOF.
• The disposition of interests in QOFs.
• To elect out of the installment method.

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If more than one Schedule K-1 is received, report each on a
separate row. Include additional identifying information, such as
“Partnership X.”

partial disposition of a MACRS asset, see Disposition of
Depreciable Property Not Used in Trade or Business in the Form
4797 instructions.

Section 1061 Reporting

If you received a Form 1099-K reporting proceeds from the
sale of personal property that resulted in gain, that transaction is
taxable and must be entered on Form 8949. Loss on the sale of
personal property is not deductible, and generally should not be
reported on Form 8949. However, if you receive a Form 1099-K
reporting proceeds from the sale of personal property that
resulted in a loss, you should report the loss with an offsetting
entry. You can do this either on Form 1040, in the entry space at
the top of Schedule 1, or on Form 8949, by entering an
adjustment when reporting the proceeds and basis of the
property, as follows. Enter “L” in column (f) as the code explaining
the loss is nondeductible. Then enter the amount of the
nondeductible loss as a positive number in column (g). Enter the
proceeds in column (d), enter the cost basis in column (e), enter
“L” in column (f), and enter in column (g) the amount of the
adjustment that will result in $0 as the gain or loss in column (h).

Section 1061 recharacterizes certain long-term capital gains of a
partner that holds one or more applicable partnership interests
as short-term capital gains. An applicable partnership interest is
an interest in a partnership that is transferred to or held by a
taxpayer, directly or indirectly, in connection with the
performance of substantial services by the taxpayer or any other
related person, in an applicable trade or business. See Section
1061 Reporting Guidance FAQs for reporting of section 1061
recharacterization amounts on the Form 8949.
A digital asset is any digital representation of value that is
recorded on a cryptographically secured distributed ledger (or
any similar technology), without regard to whether each
individual transaction involving that digital asset is actually
recorded on that ledger. A digital asset is treated as property,
and general tax principles that apply to property transactions
apply to transactions using digital assets, including how to figure
your holding period for short-term and long-term capital gains
and losses explained earlier under Short-Term or Long-Term.
Digital assets include property that has been referred to as
“convertible virtual currency,” “cryptocurrency,” and “non-fungible
tokens.” If a particular asset has the characteristics of a digital
asset, it will be treated as a digital asset for federal income tax
purposes. For more information on the tax treatment of digital
assets, see Notice 2014-21, 2014-16 I.R.B. 938, available at
IRS.gov/irb/2014-16 IRB#NOT-2014-21, as modified by Notice
2023-34, 2023-19 I.R.B. 837, available at IRS.gov/irb/2023-19
IRB#NOT-2023-34. For more information on digital asset
transactions, see IRS.gov/VirtualCurrencyFAQs.
Digital asset transactions should not be reported using box C
or F. Instead, digital asset transactions should be reported using
box G, H, or I for short-term transactions. Box J, K, or L should
be used to report long-term transactions.
For more information on the tax treatment of property
transactions and on short-term and long-term capital gains and
losses, see Pub. 544.

Rounding Off to Whole Dollars

You can round off cents to whole dollars on Form 8949. If you do
round to whole dollars, round all amounts. To round, drop cent
amounts under 50 cents and increase cent amounts over 49
cents to the next dollar. For example, $1.49 becomes $1 and
$1.50 becomes $2.

Specific Instructions
Report short-term gains and losses on Part I. Report long-term
gains and losses on Part II.

Line 1

Enter all sales and exchanges of capital assets, including stocks,
bonds, digital assets, and real estate (if not reported on line 1a or
8a of Schedule D or on Form 4684, 4797, 6252, 6781, or 8824).
Include these transactions even if you didn't receive a Form
1099-B, Form 1099-DA, or Form 1099-S (or substitute
statement) for the transaction. However, if the property you sold
was your main home, see Sale of Your Home in the Instructions
for Schedule D (Form 1040).
Enter all losses from the disposition of a portion of a MACRS
asset not used in a trade or business but held for investment or
for use in a not-for-profit activity. If you have a gain from the
Instructions for Form 8949 (2025)

Enter the details of each transaction on a separate row
(unless one of the Exceptions to reporting each transaction on a
separate row, described later, applies to you).
Part I. Use a separate Part I for each type of short-term
transaction described in the text for one of the boxes (A, B, C, G,
H, or I) at the top of Part I. Include on each Part I only
transactions described in the text for the box you check (A, B, C,
G, H, or I). Check only one box on each Part I. For example, if
you check box A or box G, include on that Part I only short-term
transactions reported to you on a statement showing basis was
reported to the IRS. Complete as many copies of Part I as you
need to report all transactions of each type (A, B, C, G, H, or I).
If you are attaching multiple Forms 8949 to your return, attach
the Form(s) 8949 that lists code "Z" in column (f) first.
If you received a Form 1099-B or Form 1099-DA for a
transaction, the “Applicable checkbox on Form 8949” box near
the top of that form may help you determine which box to check
on the Part I where you report that transaction. A substitute
statement you get instead of Form 1099-B or Form 1099-DA may
also tell you which box to check.
Box A or Box G. Report on Part I with box A or box G
checked all short-term transactions reported to you on Form
1099-B or Form 1099-DA (or substitute statement) with an
amount shown for cost or other basis unless the statement
indicates that amount wasn't reported to the IRS. If your
statement shows cost or other basis but indicates it wasn't
reported to the IRS (for example, if box 12 on Form 1099-B or
box 2 on Form 1099-DA isn't checked), see Box B or Box H
below.
Tip: If you don't need to make any adjustments to the basis or
type of gain (or loss) reported to you on Form 1099-B or Form
1099-DA (or substitute statement) or to your gain (or loss) for
any transactions for which basis has been reported to the IRS
(normally reported on Form 8949 with box A or box G checked),
you don't have to include those transactions on Form 8949.
Instead, you can report summary information for those
transactions directly on Schedule D. For more information, see
Exception 1, later.
Box B or Box H. Report on Part I with box B or box H
checked all short-term transactions reported to you on Form
1099-B or Form 1099-DA (or substitute statement) without an
amount shown for cost or other basis or showing that cost or
other basis wasn't reported to the IRS. If your statement shows
cost or other basis for the transaction was reported to the IRS
(for example, if box 12 on Form 1099-B or box 2 on Form
1099-DA is checked), see Box A or Box G above.
Box C or Box I. Report on Part I with box C or box I checked
all short-term transactions for which you can't check box A, B, G
3

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Digital Assets

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Part II. Use a separate Part II for each type of long-term
transaction described in the text for one of the boxes (D, E, F, J,
K, or L) at the top of Part II. Include on each Part II only
transactions described in the text for the box you check (D, E, F,
J, K, or L). Check only one box on each Part II. For example, if
you check box D or box J, include on that Part II only long-term
transactions reported to you on a statement showing basis was
reported to the IRS. Complete as many copies of Part II as you
need to report all transactions of each type (D, E, F, J, K, or L).
If you are attaching multiple Forms 8949 to your return, attach
the Form(s) 8949 that lists code "Z" for investments in a QOF in
column (f) first.
If you received a Form 1099-B or Form 1099-DA for a
transaction, the “Applicable checkbox on Form 8949” box near
the top of that form may help you determine which box to check
on the Part II where you report that transaction. A substitute
statement you get instead of Form 1099-B or Form 1099-DA may
also tell you which box to check.
Box D or Box J. Report on Part II with box D or box J
checked all long-term transactions reported to you on Form
1099-B or Form 1099-DA (or substitute statement) with an
amount shown for cost or other basis unless the statement
indicates that amount wasn't reported to the IRS. If your
statement shows cost or other basis but indicates it wasn't
reported to the IRS (for example, if box 12 on Form 1099-B or
box 2 on Form 1099-DA isn't checked), see Box E or Box K
below.
Tip: If you don't need to make any adjustments to the basis or
type of gain (or loss) reported to you on Form 1099-B or Form
1099-DA (or substitute statement) or to your gain (or loss) for
any transactions for which basis has been reported to the IRS
(normally reported on Form 8949 with box D or box J checked),
you don't have to include those transactions on Form 8949.
Instead, you can report summary information for those
transactions directly on Schedule D. For more information, see
Exception 1, later.
Box E or Box K. Report on Part II with box E or box K
checked all long-term transactions reported to you on Form
1099-B or Form 1099-DA (or substitute statement) without an
amount shown for cost or other basis or showing that cost or
other basis wasn't reported to the IRS. If your statement shows
cost or other basis for the transaction was reported to the IRS
(for example, if box 12 on Form 1099-B or box 2 on Form
1099-DA is checked), see Box D or Box J above.
Box F or Box L. Report on Part II with box F or box L checked
all long-term transactions for which you can't check box D, E, J,
or K because you didn't receive a Form 1099-B or Form 1099-DA
(or substitute statement). Do not use box F to report digital asset
transactions. Use box L.
You don't need to complete and file an entire copy of Form
8949 (Parts I and II) if you can check a single box to describe all
your transactions. In that case, complete and file either Part I or II
and check the box that describes the transactions. Otherwise,
complete a separate Part I or II for each category of your
transactions, as described above.
Include on your Schedule D the totals from all your Parts I and
II. Form 8949 and Schedule D explain how to do this.
Exceptions to reporting each transaction on a separate
row. There are exceptions to the rule that you must report each
of your transactions on a separate row of Part I or II. Any
taxpayer who qualifies can use Exception 1 or Exception 2
below. Taxpayers who file Form 1120-S or Form 1065 and other
qualified entities should see Special provision for certain
4

corporations, partnerships, securities dealers, and other
qualified entities, later.
Exception 1. Form 8949 isn't required for certain
transactions. You may be able to aggregate those transactions
and report them directly on either line 1a (for short-term
transactions) or line 8a (for long-term transactions) of
Schedule D. This option applies only to transactions (other than
sales of collectibles) for which:
• You received a Form 1099-B (or substitute statement) that
shows basis was reported to the IRS and doesn't show any
adjustments in box 1f or 1g;
• The Ordinary box in box 2 on Form 1099-B isn’t checked;
• You received a Form 1099-DA (or substitute statement) that
shows basis was reported to the IRS and doesn’t show any
adjustments in box 1h or 1i;
• The Ordinary box in box 6 on Form 1099-DA isn’t checked;
• You don't need to make any adjustments to the basis or type
of gain (or loss) reported on Form 1099-B or Form 1099-DA (or
substitute statement), or to your gain (or loss); and
• You aren’t electing to defer income due to an investment in a
QOF and aren’t terminating deferral from an investment in a
QOF.
If you choose to report these transactions directly on
Schedule D, you don't need to include them on Form 8949 and
don't need to attach a statement. For more information, see the
Schedule D instructions.
If you qualify to use Exception 1 and also qualify to use
Exception 2, you can use both. Report the transactions that
qualify for Exception 1 directly on either line 1a or 8a of
Schedule D, whichever applies. Report the rest of your
transactions as explained in Exception 2.
Exception 2. Instead of reporting each of your transactions
on a separate row of Part I or II, you can report them on an
attached statement containing all the same information as Parts I
and II and in a similar format (that is, description of property,
dates of acquisition and disposition, proceeds, basis, adjustment
and code(s), and gain (or loss)). Use as many attached
statements as you need. Enter the combined totals from all your
attached statements on Parts I and II with the appropriate box
checked.
For example, report on Part I with box B or box H checked all
short-term gains and losses from transactions your broker
reported to you on a statement showing basis wasn't reported to
the IRS. Enter the name of the broker followed by the words “see
attached statement” in column (a). Leave columns (b) and (c)
blank. Enter “M” in column (f). If other codes also apply, enter all
of them in column (f). Enter the totals that apply in columns (d),
(e), (g), and (h). If you have statements from more than one
broker, report the totals from each broker on a separate row.
Don't enter “Available upon request” and summary totals in
lieu of reporting the details of each transaction on Part I or II or
attached statements.
Caution: Exception 2 is not available for the election to defer
eligible gain by investing in a QOF. Taxpayers who elect to defer
eligible gain must report the details of each investment in a QOF
on Form 8949 in the manner described under How To Report an
Election To Defer Tax on Eligible Gain Invested in a QOF, later.
Special provision for certain corporations, partnerships,
securities dealers, and other qualified entities. This special
provision applies to certain corporations, partnerships, securities
dealers, and nonprofit organizations. Individual taxpayers aren't
eligible except in rare circumstances.
You may enter summary totals instead of reporting the details
of each transaction on a separate row of Part I or II or on
attached statements if:
1. You file Form 1120-S or Form 1065, or are a taxpayer
exempt from receiving Form 1099-B or Form 1099-DA, such as a
Instructions for Form 8949 (2025)

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or H because you didn't receive a Form 1099-B or Form
1099-DA (or substitute statement). Do not use box C to report
digital asset transactions. Use box I.

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corporation or exempt organization, under Regulations section
1.6045-1(c)(3)(i)(B); and
2. You must report more than five transactions for that part.
If this provision applies to you, enter the summary totals on
line 1. For short-term transactions, check box C or box I at the
top of Part I even if the summary totals include transactions
described in the text for box A, B, G, or H. For long-term
transactions, check box F or box L at the top of Part II even if the
summary totals include transactions described in the text for box
D, E, J, or K. Enter “Available upon request” in column (a). Leave
columns (b) and (c) blank. Enter “M” in column (f). If other codes
also apply, enter all of them in column (f). Enter the totals that
apply in columns (d), (e), (g), and (h).
Don't use a separate row for the totals from each broker.
Instead, enter the summary totals from all brokers on a single
row of Part I with box C or box I checked or Part II with box F or
box L checked.

E-file. If you e-file your return but choose not to report each
transaction on a separate row on the electronic return, you must
attach Form 8949 to Form 8453 (or the appropriate form in the
Form 8453 series) and mail the forms to the IRS. (However, you
can't attach a paper Form 8949 to Form 8453-FE.) You can
attach one or more statements containing all the same
information as Form 8949, instead of attaching Form 8949, if the
statements are in a format similar to Form 8949.
However, this doesn't apply to transactions that qualify for
Exception 1 or the Special provision for certain corporations,
partnerships, securities dealers, and other qualified entities,
earlier. In those cases, an attachment, a statement, or Form
8453 isn’t required.
Charitable gift annuity. If you are the beneficiary of a
charitable gift annuity and receive a Form 1099-R showing an
amount in box 3, report the box 3 amount on Part II with box F or
box L checked. Enter “Form 1099-R” in column (a). Enter the
box 3 amount in column (d). Also, complete column (h).
Form 2438. Enter any net short-term capital gain from line 4 of
Form 2438 on Part I with box C or box I checked. Enter “Net
short-term capital gain from Form 2438, line 4” in column (a),
enter the gain in column (h), and leave all other columns blank.
Enter any amount from line 12 of Form 2438 on Part II with
box F or box L checked. Enter “Undistributed capital gains not
designated (from Form 2438)” in column (a), enter the amount of
the gain in column (h), and leave all other columns blank.
Form 2439. Corporations and partnerships report undistributed
long-term capital gains from Form 2439 on Part II with box F or
box L checked. Enter “From Form 2439” in column (a), enter the
gain in column (h), and leave all other columns blank. Individuals
report undistributed long-term capital gains from Form 2439 on
line 11 of Schedule D (Form 1040). Estates and trusts report
those amounts on line 11 of Schedule D (Form 1041).
Schedule P (Form 1040-NR). A nonresident alien individual,
foreign trust, or foreign estate that sells or exchanges an interest
in a partnership engaged in a U.S. trade or business reports
recognized effectively connected capital gain (or loss) on Part I
and checking box C or box I, if short term capital gain (or loss)
and Part II and checking box F or box L, if long term capital gain
(or loss). Enter the name and EIN, if available, of the partnership
whose interest was transferred in column (a), enter the code “P”
Instructions for Form 8949 (2025)

Schedule P (Form 1120-F). A foreign corporation that sells or
exchanges an interest in a partnership engaged in a U.S. trade
or business reports recognized effectively connected capital gain
(or loss) on Part I and checking box C or box I, if short term
capital gain (or loss) and Part II and checking box F or box L, if
long term capital gain (or loss). Enter the name and EIN, if
available, of the partnership whose interest was transferred in
column (a), enter the code “P” in column (f), and enter the gain
(or loss) in column (h) with all other columns filled in.
Contingent payment debt instruments. If you sell a taxable
contingent payment debt instrument subject to the
noncontingent bond method at a gain, your gain is ordinary
income (interest income), even if you hold the debt instrument as
a capital asset. If you sell a taxable contingent payment debt
instrument subject to the noncontingent bond method at a loss,
your loss is an ordinary loss to the extent of your prior original
issue discount (OID) inclusions on the debt instrument. If the
debt instrument is a capital asset, treat any loss that is more than
your prior OID inclusions as a capital loss. See Regulations
section 1.1275-4(b) for exceptions to these rules.
If you received a Form 1099-B or Form 1099-DA (or substitute
statement) reporting the sale of a taxable contingent payment
debt instrument subject to the noncontingent bond method and
the Ordinary box in box 2 on Form 1099-B or the Ordinary box in
box 6 on Form 1099-DA is checked, an adjustment may be
required. See the Worksheet for Contingent Payment Debt
Instrument Adjustment in Column (g), later, to figure the
adjustment to enter in column (g).
See Pub. 550 or Pub. 1212, Guide to Original Issue Discount
(OID) Instruments, for more details on any special rules or
adjustments that might apply.
Net asset value (NAV) method for money market funds. If
you have a capital gain (or loss) determined under the NAV
method with respect to shares in a money market fund, enter the
name of the fund followed by “(NAV)” in column (a) on Part I with
box C or box I checked. Enter the net gain (or loss) in column (h).
Leave all other columns blank. No long-term capital gain (or
loss) can be entered under the NAV method.
Nondividend distributions. Distributions from a corporation
with respect to its stock that are a return of your cost (or other
basis) aren’t taxed until you recover your cost (or other basis),
determined on a share-by-share basis. Reduce your cost (or
other basis) in a share by the distributions allocable to such
share. After you have recovered your entire cost (or other basis)
in a share, any later nondividend distribution allocable to that
share is taxable as a capital gain. Enter the name of the payer of
any taxable nondividend distributions in column (a) on Part I with
box C or box I checked or Part II with box F or box L checked
(depending on how long you held the stock). Enter the taxable
part of the distribution in columns (d) and (h). Each payer of a
nondividend distribution should send you a Form 1099-DIV
showing the amount of the distribution in box 3.
Dispositions of depreciable property not used in a trade or
business. Report on Form 8949 a loss from the sale or
exchange of depreciable property not used in a trade or
business but held for investment or for use in a not-for-profit
activity. If you have a gain from the sale of such property, see
Disposition of Depreciable Property Not Used in Trade or
Business in the Form 4797 instructions.
Other gains (or losses) where sales price or basis isn't
known. If you have another gain (or loss) for which you don't
know the sales price or basis (such as a long-term capital gain
from Form 8621), enter a description of the gain (or loss) in
column (a) on Part I with box C or box I checked or Part II with
5

DRAFT

DRAFT

Caution: This special provision is not available for the election
to defer eligible gain by investing in a QOF. Taxpayers who elect
to defer eligible gain must report the details of each investment
in a QOF on Form 8949 in the manner described under How To
Report an Election To Defer Tax on Eligible Gain Invested in a
QOF, later.

in column (f), and enter the gain (or loss) in column (h) with all
other columns filled in.

TREASURY/IRS AND OMB USE ONLY DRAFT
box F or box L checked (depending on how long you held the
property). If you have a gain, enter it in columns (d) and (h). If
you have a loss, enter it in columns (e) and (h). Complete any
other columns you can.

Column (a)—Description of Property

For stock, include the number of shares. You can use stock ticker
symbols or abbreviations to describe the property as long as
they are based on the descriptions of the property as shown on
Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute
statement).
For a digital asset, include the full name or an abbreviated
symbol of the digital asset and the exact units sold or disposed
of in the transaction, and include the sale transaction ID number,
if available.

Column (b)—Date Acquired

If you received a Form 1099-B or Form 1099-DA (or substitute
statement), box 1b on Form 1099-B or box 1d on Form 1099-DA
may help you determine when you acquired the property.
Inherited property. Generally, if you disposed of property that
you acquired by inheritance, report the sale or exchange on Part
II with the appropriate box checked D, E, F, J, K, or L. Enter
“INHERITED” in column (b).
Stock or digital assets acquired on various dates. If you
sold a block of stock or digital assets (or similar property) that
you acquired through several different purchases, you may
report the sale on one row and enter “VARIOUS” in column (b).
However, you must still report the short-term gain (or loss) on the
sale on Part I and the long-term gain (or loss) on Part II.

Column (c)—Date Sold or Disposed Of

Enter in this column the date you sold or disposed of the
property. Use the trade date for stocks and bonds traded on an
exchange or over-the-counter market. For a short sale, enter the
date you delivered the property to the broker or lender to close
the short sale.
If you received a Form 1099-B or Form 1099-DA (or substitute
statement), box 1c on Form 1099-B or box 1e on Form 1099-DA
may help you determine when you sold or disposed of the
property.

Column (d)—Proceeds (Sales Price)

Follow the instructions below that apply to your transaction(s).

You didn't receive a Form 1099-B, Form 1099-DA, or Form
1099-S (or substitute statement). If you didn't receive a Form
1099-B, Form 1099-DA, or Form 1099-S (or substitute
statement) for a transaction, enter in column (d) the net
proceeds. The net proceeds equal the gross proceeds minus
any selling expenses (such as broker’s fees, commissions, and
state and local transfer taxes). If you sold a call option and it was
exercised, you adjust the sales price of the property sold under
the option for any option premiums (as instructed under Gain or
Loss From Options in the Instructions for Schedule D (Form
1040)).
You received a Form 1099-B, Form 1099-DA, or Form
1099-S (or substitute statement). If you received a Form
6

Column (e)—Cost or Other Basis

The basis of property you buy is usually its cost, including the
purchase price and any costs of purchase, such as
commissions. You may not be able to use the actual cost as the
basis if you inherited the property, got it as a gift, or received it in
a tax-free exchange or involuntary conversion or in connection
with a “wash sale.” If you don't use the actual cost, attach an
explanation of your basis.
The basis of property acquired by gift is generally the basis of
the property in the hands of the donor. The basis of inherited
property is generally the fair market value at the date of death.
See Pub. 551 for details.
If you elected to recognize gain on property held on January
1, 2001, your basis in the property is its closing market price or
fair market value, whichever applies, on the date of the deemed
sale and reacquisition, whether the deemed sale resulted in a
gain or an unallowed loss.
Schedule A (Form 8971)—Consistent basis reporting. If
you received Schedule A (Form 8971) from an executor of an
estate or other person required to file an estate tax return and
you are a beneficiary who receives (or is to receive) property
from that estate, you will be required to report a basis consistent
with the final estate tax value of the property if Part II, column (f),
of the Schedule A (Form 8971) you received indicates that the
property increased the estate tax liability of the decedent. In this
case, first use an amount that is equal to or less than the final
estate tax value listed in Part II, column (h), of the Schedule A
(Form 8971). This amount is your initial basis in the property. You
then adjust your initial basis in the property, as described under
Adjustments to basis, later. The resulting amount is entered in
column (e) of Form 8949.
Tip: If you received a supplemental Schedule A (Form 8971),
use the most recently dated supplemental Schedule A (Form
8971) to determine your initial basis.
Penalties for inconsistent basis reporting. If you use an
initial basis that is more than the amount listed in Part II, column
(h), of Schedule A (Form 8971) to figure your basis in the
property and Part II, column (f), of Schedule A (Form 8971)
indicates that the property increased the estate tax liability of the
decedent, you may be subject to a penalty equal to 20% of any
resulting underpayment of tax because the basis reported isn’t
consistent with the final estate tax value of the property.
For more details, see Pub. 550; Pub. 551; or the Instructions
for Form 8971 and Schedule A, available at IRS.gov/Form8971.
Adjustments to basis. Before you can figure any gain (or loss)
on a sale, exchange, or other disposition of property, you must
usually make certain adjustments (increases and decreases) to
Instructions for Form 8949 (2025)

DRAFT

DRAFT

Enter in this column the date you acquired the property. Enter the
trade date for stocks and bonds you purchased on an exchange
or over-the-counter market. For a short sale, enter the date you
acquired the property delivered to the broker or lender to close
the short sale. For property you previously elected to treat as
having been sold and reacquired on January 1, 2001 (or January
2, 2001, for readily tradable stock), enter the date of the deemed
sale and reacquisition.

1099-B, Form 1099-DA, or Form 1099-S (or substitute
statement) for a transaction, enter in column (d) the proceeds
shown on the form or statement you received. If there are any
selling expenses or option premiums that aren't reflected on the
form or statement you received (by an adjustment to either the
proceeds or basis shown), enter “E” in column (f) and the
necessary adjustment in column (g). See the example under
Column (g)—Amount of Adjustment, later.
If the proceeds you received were more than shown on Form
1099-B, Form 1099-DA, or Form 1099-S (or substitute
statement), enter the correct proceeds in column (d). This might
happen if, for example, box 4 on Form 1099-S is checked.
You shouldn't have received a Form 1099-B or Form 1099-DA
(or substitute statement) for a transaction merely representing
the return of your original investment in a nontransferable
obligation, such as a savings bond or a certificate of deposit. But
if you did, report the proceeds shown on Form 1099-B or Form
1099-DA (or substitute statement) in both columns (d) and (e).

TREASURY/IRS AND OMB USE ONLY DRAFT
the basis of the property. Increase the basis of your property by
capital improvements. Decrease it by depreciation, amortization,
and depletion. Other adjustments may be necessary for your
property. See Pub. 551 for more information.
If you sold shares of stock, adjust your basis in each share,
but not below zero, by subtracting all the nondividend
distributions allocable to such shares that were received before
the sale and that reduced your cost (or other basis) in such
shares. Also, adjust your basis for any stock splits. See Pub. 550
for details. See Form 1099-B or Form 1099-DA and How To
Complete Form 8949, Columns (f) and (g), later, for the
adjustment you must make if you received a Form 1099-B or
Form 1099-DA (or substitute statement) and the basis shown in
box 1e on Form 1099-B or box 1g on Form 1099-DA is incorrect.
Increase the cost or other basis of a taxable OID debt
instrument by the amount of OID that you have included in gross
income for that instrument. See Pub. 550 for details.
Increase the cost or other basis of a tax-exempt OID debt
instrument by the amount of tax-exempt OID that accrued on the
debt instrument while held by you. See Pub. 550 for details.

If you elect to amortize bond premium on a taxable bond,
reduce the basis of the bond by any bond premium amortization
allowed as either an offset to interest income or as a deduction
for that bond. Reduce the basis of a tax-exempt bond by any
bond premium amortization for that bond. See Pub. 550 for
details.
If a charitable contribution deduction is allowable because of
a bargain sale of property to a charitable organization, you must
allocate your basis in the property between the part sold and the
part contributed based on the fair market value of each. See
Pub. 544 for details.
For compensatory options granted after 2013, the basis
information reported to you on Form 1099-B or Form 1099-DA
(or substitute statement) won’t reflect any amount you included
in income upon grant or exercise of the option. Increase your
basis by any amount you included in income upon grant or
exercise of the option. For compensatory options granted before
2014, any basis information reported to you on Form 1099-B or
Form 1099-DA (or substitute statement) may or may not reflect
any amount you included in income upon grant or exercise of the
option; therefore, the basis may need to be adjusted. If the basis
information reported to you on Form 1099-B or Form 1099-DA
(or substitute statement) doesn’t reflect an amount you included
in income upon grant or exercise of the option, increase your
basis by the amount you included in income upon grant or
exercise of the option. See Pub. 525 for more information.
Solely for purposes of calculating a loss on a disposition of
stock of a specified 10%-owned foreign corporation, if a
domestic corporate shareholder received an actual or
constructive dividend after December 31, 2017, and that
dividend qualified for the 100% dividends-received deduction,
the shareholder must reduce its basis in the foreign corporation
stock by the amount of the allowable deduction (except to the
extent such basis was reduced under section 1059 by reason of
a dividend that qualified for the deduction), but not below zero.
Average basis. You can use the average basis method to
determine the basis of shares of stock if the shares are identical
to each other, you acquired them at different prices and left them
in an account with a custodian or agent, and either:
• They are shares in a mutual fund (or other regulated
investment company);
Instructions for Form 8949 (2025)

Form 1099-B or Form 1099-DA. If the property you sold was a
covered security, its basis should be shown in box 1e on Form
1099-B or box 1g on Form 1099-DA (or substitute statement)
you received from your broker. Generally, a covered security is
any of the following.
• Stock you acquired after 2010 (generally after 2011, if in a
mutual fund or other regulated investment company, or acquired
through a DRP).
• Certain stock held in a mutual fund or in connection with a
DRP for which a single-account election is in effect.
• Certain debt instruments you acquired after 2013.
• Certain options, warrants, and stock rights you granted or
acquired after 2013.
• A securities future contract you entered into after 2013.
• Variable rate debt instruments acquired after 2015.
• Inflation-indexed debt instruments acquired after 2015.
• Contingent payment debt instruments acquired after 2015.
• Convertible debt instruments acquired after 2015.
• Options on debt instruments with payments denominated in
(or determined by reference to) a currency other than the U.S.
dollar and granted or acquired after 2015.
• Options issued as part of investment units and granted or
acquired after 2015.
• A digital asset acquired after 2025.
For more information on covered securities, see section
6045(g) and Regulations section 1.6045-1.
For covered securities, enter the basis shown on Form
1099-B or Form 1099-DA (or substitute statement) in column (e).
If the basis shown on Form 1099-B or Form 1099-DA (or
substitute statement) isn’t correct, see How To Complete Form
8949, Columns (f) and (g), later, for the adjustment you must
make.
If box 5 on Form 1099-B or box 9 on Form 1099-DA (or
substitute statement) is checked, the property sold wasn't a
covered security.
For noncovered securities, enter the correct basis of the
property in column (e) if:
• No basis is shown on Form 1099-B or Form 1099-DA (or
substitute statement), or
• The basis shown wasn't reported to the IRS.
If the basis shown wasn’t reported to the IRS, see How To
Complete Form 8949, Columns (f) and (g), later, for further
information about how to report the correct basis.

Column (f)—Code

In order to explain any adjustment to gain (or loss) in column (g),
enter the appropriate code(s) in column (f). See How To
Complete Form 8949, Columns (f) and (g), later. If more than
one code applies, enter all the codes that apply in alphabetical
7

DRAFT

DRAFT

If you elect to currently include in income the market discount
on a bond, increase the basis of the bond by the market discount
that has been included in income for that bond. See Pub. 550 for
details.

• They are shares you hold in connection with a dividend
reinvestment plan (DRP), and all the shares you hold in
connection with the DRP are treated as covered securities
(defined below); or
• You acquired them after 2011 in connection with a DRP.
Shares are identical if they have the same CUSIP number,
except that shares of stock in a DRP aren't identical to shares of
stock that aren't in a DRP, even if they have the same CUSIP
number. (CUSIP numbers are security identification numbers.)
If you are using the average basis method and received a
Form 1099-B or Form 1099-DA with respect to a tokenized
security (or substitute statement) that shows an incorrect basis,
enter “B” in column (f), enter the basis shown on Form 1099-B or
Form 1099-DA with respect to a tokenized security (or substitute
statement) in column (e), and see How To Complete Form 8949,
Columns (f) and (g), later. For details on making the election and
figuring average basis, see section 1012, Pub. 550, and
Regulations section 1.1012-1(e).

TREASURY/IRS AND OMB USE ONLY DRAFT
order (for example, “BOQ”). Don't separate the codes by a space
or comma.

Column (g)—Amount of Adjustment

Enter in this column any necessary adjustments to gain (or loss).
Enter negative amounts in parentheses. Also, enter a code in
column (f) to explain the adjustment. See How To Complete
Form 8949, Columns (f) and (g), later.
More than one code. If you entered more than one code in
column (f) on the same row, enter the net adjustment in column
(g). For example, if one adjustment is $5,000 and another is
($1,000), enter $4,000 ($5,000 − $1,000).
Example. You sold your main home in 2025 for $320,000
and received a Form 1099-S showing the $320,000 gross

proceeds. The home's basis was $100,000. You had selling
expenses of $20,000 that weren’t included on your Form 1099-S.
Under the tests described in Sale of Your Home in the
Instructions for Schedule D (Form 1040), you can exclude the
entire $200,000 gain from income. On Form 8949, Part II, check
box F or box L at the top. Complete columns (a), (b), and (c).
Enter $320,000 in column (d) and $100,000 in column (e). Enter
“EH” in column (f). In column (g), enter $220,000 ($20,000
selling expenses + $200,000 exclusion) as a negative number.
Put it in parentheses to show it is negative. In column (h),
enter -0- ($320,000 − $100,000 − $220,000). If this is your only
transaction on this Part II, enter $320,000 in column (d) on
line 10 of Schedule D (Form 1040), $100,000 in column (e),
($220,000) in column (g), and -0- in column (h).

How To Complete Form 8949, Columns (f) and (g)
For most transactions, you don't need to complete columns (f) and (g) and can leave them blank. You may need to complete columns
(f) and (g) if you got a Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement) that is incorrect, if you are excluding or
postponing a capital gain, if you have a disallowed loss, or in certain other situations. Details are in the table below. If you enter more
than one code in column (f), see More than one code in the instructions for column (g) above.

THEN enter this code
in column (f) . . .

AND. . .

B

• If this transaction is reported on Part I with box B or box
H checked at the top or if this transaction is reported on
Part II with box E or box K checked at the top, enter the
correct basis in column (e), and enter -0- in column (g).
• If this transaction is reported on Part I with box A or box
G checked at the top or if this transaction is reported on
Part II with box D or box J checked at the top, 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). To figure the adjustment needed, see the
Worksheet for Basis Adjustments in Column (g), later. Also,
see Example 4—Adjustment for incorrect basis in the
instructions for column (h), later.

C

Enter -0- in column (g). Report the disposition on Form
8949 as you would report any sale or exchange.

D

Use the Worksheet for Accrued Market Discount
Adjustment in Column (g), later, to figure the amount to
enter in column (g). However:
• If you received a partial payment of principal on a bond,
don't use the worksheet. Instead, enter the smaller of the
accrued market discount or your proceeds in column (g).
Also, report it as interest on your tax return.
• If you chose to include market discount in income
currently, enter -0- in column (g). Before figuring your gain
(or loss), increase your basis in the bond by the market
discount you have included in income for all years. See the
instructions for code B above.
If the disposition of a market discount bond results in a loss
subject to the wash sale rules, enter “W” in column (f) and
follow the instructions for code W below.

You received a Form 1099-B or Form
1099-DA (or substitute statement) and the
basis shown in box 1e on Form 1099-B or
box 1g on Form 1099-DA is incorrect

You disposed of collectibles (see the
Schedule D instructions)
You received a Form 1099-B or Form
1099-DA (or substitute statement) showing
accrued market discount in box 1f on Form
1099-B or box 1h on Form 1099-DA

8

Instructions for Form 8949 (2025)

DRAFT

DRAFT

IF . . .

TREASURY/IRS AND OMB USE ONLY DRAFT
IF . . .

You sold or exchanged your main home at a
gain, must report the sale or exchange on
Part II of Form 8949 (as explained in Sale of
Your Home in the Instructions for
Schedule D (Form 1040)), and can exclude
some or all of the gain
You have a nondeductible loss other than a
loss indicated by code W

You report multiple transactions on a single
row, as described in Exception 2 or Special
provision for certain corporations,
partnerships, securities dealers, and other
qualified entities under Exceptions to
reporting each transaction on a separate
row, earlier
You received a Form 1099-B, Form
1099-DA, or Form 1099-S (or substitute
statement) as a nominee for the actual
owner of the property

You are a nonresident alien individual,
foreign trust, foreign estate, or foreign
corporation who sold or exchanged an
interest in a partnership engaged in a U.S.
trade or business

AND. . .

E

Enter in column (d) the proceeds shown on the form or
statement you received. Enter in column (e) any cost or
other basis shown on Form 1099-B, Form 1099-DA, or
Form 1099-S (or substitute statement). In column (g), enter
as a negative number (in parentheses) selling expenses,
digital asset transaction costs, and option premiums that
you paid (and that aren't reflected on the form or statement
you received) and enter as a positive number any option
premium that you received (and that isn't reflected on the
form or statement you received). Selling expenses resulting
from transactions reported on Form 1099-B or Form
1099-S may have differing treatment than digital asset
transaction costs reported on Form 1099-DA. For more
information about option premiums, see Gain or Loss From
Options in the Instructions for Schedule D (Form 1040).

H

L

M

Report the sale or exchange on Form 8949 and enter the
amount of the nondeductible loss as a positive number in
column (g). See Certain Nondeductible Losses in the
Instructions for Schedule D (Form 1040).
See Exception 2 and Special provision for certain
corporations, partnerships, securities dealers, and other
qualified entities under Exceptions to reporting each
transaction on a separate row, earlier. Enter -0- in column
(g) unless an adjustment is required because of another
code.

N

Report the transaction on Form 8949 as you would if you
were the actual owner, but also enter any resulting gain as
a negative adjustment (in parentheses) in column (g) or any
resulting loss as a positive adjustment in column (g). As a
result of this adjustment, the amount in column (h) should
be zero. However, if you received capital gain distributions
as a nominee, report them instead, as described under
Capital Gain Distributions in the Instructions for Schedule D
(Form 1040).

P

Report on Form 8949 the gain or loss on the sale or
exchange. Enter in column (g) any adjustment resulting
from the application of Regulations section 1.864(c)(8)-1(b)
and (c). If you are required to file Schedule P (Form
1040-NR), see the instructions for Part II, lines 9 and 17. If
you are required to file Schedule P (Form 1120-F), see the
instructions for Part V, line 9.

Q

Report the sale or exchange on Form 8949 as you would if
you weren't taking the exclusion and enter the amount of
the exclusion as a negative number (in parentheses) in
column (g). However, if the transaction is reported as an
installment sale, see Gain from an installment sale of QSB
stock in the Instructions for Schedule D (Form 1040).

You sold or exchanged QSB stock and can
exclude part of the gain

Instructions for Form 8949 (2025)

Report the sale or exchange on Form 8949 as you would if
you weren't taking the exclusion. Then enter the amount of
excluded (nontaxable) gain as a negative number (in
parentheses) in column (g). See the example in the
instructions for column (g).

DRAFT

DRAFT

You received a Form 1099-B, Form
1099-DA, or Form 1099-S (or substitute
statement) for a transaction and there are
selling expenses, option premiums, or
digital asset transaction costs that aren't
reflected on the form or statement by an
adjustment to either the proceeds or basis
shown

THEN enter this code
in column (f) . . .

9

TREASURY/IRS AND OMB USE ONLY DRAFT
IF . . .
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)
You had a loss from the sale, exchange, or
worthlessness of small business (section
1244) stock and the total loss is more than
the maximum amount that can be treated as
an ordinary loss

THEN enter this code
in column (f) . . .

R

S

Tip: If you received a Form 1099-B or Form
1099-DA (or substiture statement) with the
Ordinary box in box 2 on Form 1099-B or
box 6 on Form 1099-DA checked and the
security is a taxable contingent payment
debt instrument subject to the
noncontingent bond method, enter code “O”
for the transaction in column (f) of the
appropriate part of Form 8949 and
complete the Worksheet for Contingent
Payment Debt Instrument Adjustment in
Column (g), later, to figure the amount to
enter in column (g).

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).
See Small Business (Section 1244) Stock in the
Schedule D (Form 1040) instructions.

Report the transaction on the correct part of Form 8949,
and enter -0- in column (g) on that part of the form if there
are no adjustments needed for the transaction.

T

DRAFT

DRAFT

You received a Form 1099-B or Form
1099-DA (or substitute statement) and the
type of gain (or loss) shown in box 2 on
Form 1099-B or box 6 on Form 1099-DA is
incorrect

AND. . .

W

Report the sale or exchange on Form 8949 and enter the
amount of the nondeductible loss as a positive number in
column (g). See the Schedule D instructions for more
information about wash sales generally and Pub. 550 for
more information on wash sales involving substantially
similar stock or securities. If you received a Form 1099-B or
Form 1099-DA (or substitute statement) and the amount of
nondeductible wash sale loss shown in box 1g on Form
1099-B or box 1i on Form 1099-DA is incorrect, enter the
correct amount of the nondeductible loss as a positive
number in column (g). If the amount of the nondeductible
loss is less than the amount shown on Form 1099-B or
Form 1099-DA (or substitute statement), attach a
statement explaining the difference. If no part of the loss is
a nondeductible loss from a wash sale transaction,
enter -0- in column (g).

You can exclude all or part of your gain
under the rules explained in the Schedule D
instructions for DC Zone assets or qualified
community assets

X

Report the sale or exchange on Form 8949 as you would if
you weren't taking the exclusion. Then enter the amount of
the exclusion as a negative number (in parentheses) in
column (g).

You are reporting your gain from a QOF
investment that you deferred in a prior tax
year

Y

You have a nondeductible loss from a wash
sale

You are electing to postpone all or part of
your gain under the rules explained in the
Schedule D instructions for investments in
QOFs

10

Z

See How To Report Gain Previously Deferred in a QOF
Investment, later.
See How To Report an Election To Defer Tax on Eligible
Gain Invested in a QOF, later.

Instructions for Form 8949 (2025)

TREASURY/IRS AND OMB USE ONLY DRAFT
THEN enter this code
in column (f) . . .

IF . . .
You have an adjustment not explained
earlier in this column

O

AND. . .
Enter the appropriate adjustment amount in column (g).
See the instructions for column (g).

None of the other statements in this column Leave columns (f) and (g) blank.
apply because you have no adjustments

Column (h)—Gain (or Loss)

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). Enter
the gain (or loss) in column (h). Enter negative amounts in
parentheses.
Example 1—Gain. Column (d) is $6,000 and column (e) is
$2,000. Enter $4,000 in column (h).
Example 2—Loss. Column (d) is $6,000 and column (e) is
$8,000. Enter ($2,000) in column (h).

Example 4—Adjustment for incorrect basis. You sold
stock for $1,000. You had owned the stock for 3 months. Your
correct basis for the stock is $100, but you receive a Form
1099-B or Form 1099-DA that shows your basis is $900 and
shows your broker reported that basis to the IRS. Enter $900 on
line 1 of the Worksheet for Basis Adjustments in Column (g),
later. Enter $100 on line 2 of the worksheet. Because line 1 is
larger than line 2, leave line 3 blank and enter $800 ($900 −
$100) as a positive number on line 4. Also, enter $800 in column

Example 5—Digital asset. During the year, you purchased
one unit of digital asset A on June 1 for $1,000. Three years later
on June 1 you use a platform for trading digital assets to
exchange your unit of digital asset A for one unit of digital asset
B with a fair market value of $3,000. You must report a long-term
capital gain of $2,000.
Example 6—Digital asset. You are a self-employed
attorney who performs legal services for a client. The client gives
you one unit of digital asset A as payment for services. At the
time of the payment, the fair market value of one unit of digital
asset A is $10,000. You report $10,000 in self-employment
income (the fair market value of one unit of digital asset A). Two
months later, when the fair market value of one unit of digital
asset A is $12,000, you decide to sell it. You must report a
short-term capital gain of $2,000, which is the difference
between the sales price ($12,000) and your basis in one unit of
digital asset A ($10,000).

Keep for Your Records

Worksheet for Basis Adjustments in Column (g)

If the basis shown on Form 1099-B or Form 1099-DA (or substitute statement) isn't correct, do the following.
• If the basis wasn't reported to the IRS, enter the correct basis in column (e) and enter -0- in column (g) (unless you must make an adjustment for some other reason).
You don't need to complete this worksheet.
• If the basis was reported to the IRS, enter the reported basis shown on Form 1099-B or Form 1099-DA (or substitute statement) in column (e) and use this worksheet
to figure the adjustment to include in column (g).
1.

Enter the cost or other basis shown on Form 1099-B or Form 1099-DA (or substitute statement)

....................

1.

2.

Enter the correct cost or other basis

...........................................................

2.

3.

If line 1 is larger than line 2, leave this line blank and go to line 4. If line 2 is larger than line 1, subtract line 1 from line 2. Enter the
result here and in column (g) as a negative number (in parentheses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4.

If line 1 is larger than line 2, subtract line 2 from line 1. Enter the result here and in column (g) as a positive number

4.

Worksheet for Accrued Market Discount Adjustment in Column (g)

........

Keep for Your Records

If you received a Form 1099-B or Form 1099-DA (or substitute statement) reporting the sale or retirement of a market discount bond, enter code “D” for the transaction in
column (f) of the appropriate part of Form 8949 and complete this worksheet to figure the amount to enter in column (g). If, in addition, any of the amounts shown on Form
1099-B or Form 1099-DA (or substitute statement) are incorrect, see How To Complete Form 8949, Columns (f) and (g), earlier, for information on how to correct those
amounts. Use the corrected amounts when completing this worksheet.
1.

Enter the proceeds from box 1d on Form 1099-B or box 1f on Form 1099-DA (or substitute statement) . . . . . . . . . . . . . . . . .

1.

2.

Enter the basis from box 1e of Form 1099-B or box 1g on Form 1099-DA (or substitute statement) . . . . . . . . . . . . . . . . . . . .

2.

3.

Subtract line 2 from line 1. If zero or less, enter -0-

..................................................

3.

4.

Enter the accrued market discount from box 1f on Form 1099-B or box 1h on Form 1099-DA (or substitute statement) . . . . . . .

4.

5.

Enter the smaller of line 3 or line 4, or, if lines 3 and 4 are the same, enter the amount from line 3. This is the amount of your gain
that is ordinary income. Enter it as a negative amount (in parentheses) in Form 8949, column (g). Also, report it as interest income
on your tax return. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

Instructions for Form 8949 (2025)

11

DRAFT

DRAFT

Example 3—Adjustment. Column (d) is $6,000, column (e)
is $2,000, and column (g) is ($1,000). Enter $3,000 in column
(h).

(g) of Part I with box A or box G checked at the top. Enter “B” in
column (f). Enter $1,000 in column (d) and $900 in column (e).
To figure your gain (or loss), subtract $900 from $1,000.
Combine the result, $100, with the $800 adjustment in column
(g). Your gain is $900 ($100 + $800). Enter $900 in column (h).

TREASURY/IRS AND OMB USE ONLY DRAFT
Worksheet for Contingent Payment Debt Instrument
Adjustment in Column (g)

Keep for Your Records

1.

Enter the proceeds from box 1d on Form 1099-B or box 1f on Form 1099-DA (or substitute statement) . . . . . . . . . . . . . . . . .

1.

2.

Enter the basis from box 1e on Form 1099-B or box 1g on Form 1099-DA (or substitute statement)

...................

2.

3.

Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4.

If line 3 is more than zero, enter the number from line 3. This is the amount of your gain that is ordinary income. Enter this amount
as a negative amount (in parentheses) in Form 8949, column (g), and enter “O” in column (f). Also, report it as interest income on
your tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5.

If line 3 is less than zero, enter the total amount of OID on this debt instrument that you included in income for the entire period
that you held the debt instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6.

Enter the total amount of net negative adjustments on the debt instrument that you took into account as ordinary losses over the
entire period that you held the debt instrument. Enter this amount as a negative amount (in parentheses) . . . . . . . . . . . . . . .

6.

7.

Add lines 5 and 6

7.

8.

Enter the amount from line 3 as a positive amount

..................................................

8.

9.

Enter the smaller of line 7 or line 8. This is the amount of your loss that is an ordinary loss. Enter it as a positive amount in Form
8949, column (g), and enter “O” in column (f). Also, report it as an ordinary loss on your tax return . . . . . . . . . . . . . . . . . . . .

9.

.......................................................................

How To Report an Election To Defer Tax on
Eligible Gain Invested in a Qualified Opportunity
Fund (QOF)
Tip: For more information on QOFs, see Pub. 544.
If you elect to defer tax on an eligible gain by investing in a
QOF, report the eligible gain on the form and in the manner
otherwise instructed. For example, individual taxpayers would
report gain from the sale of stock on Form 8949 and Schedule D
(Form 1040). If the gain is reported on Form 8949, do not make
any adjustments for the deferral in column (g).
Report the deferral of the eligible gain on its own row of Form
8949 in Part I with box C or box I checked or Part II with box F or
box L checked (depending on whether the gain being deferred is
short term or long term). If you made multiple investments in
different QOFs or in the same QOF on different dates, use a
separate row for each investment. If you invested eligible gains
of the same character (but from different transactions) on the
same date into the same QOF, you can group those investments
on the same row. In column (a), enter only the employer
identification number (EIN) of the QOF into which you invested.
In column (b), enter the date you invested in the QOF. Leave
columns (c), (d), and (e) blank. Enter code “Z” in column (f) and
the amount of the deferred gain as a negative number (in
parentheses) in column (g).
Your investment in a QOF can be used to defer only long-term
gain, only short-term gain, or a combination of both short-term
and long-term gain. You do not need to trace or allocate the
funds invested in a QOF to the specific gain being deferred, but
the investment in the QOF must have occurred within the
180-day period beginning on the date the deferred gain was
realized. If you realized both short-term and long-term gains
during the 180-day period, you can choose how much of each
gain to defer by reporting the deferral in Part I or Part II, as
applicable. The character of the eligible gain will survive the
investment in the QOF. When you recognize the eligible gain
(either when you sell or exchange or otherwise dispose of your
investment in the QOF or December 31, 2026, whichever is
earlier), the gain you recognize will be the same character as the
gain you deferred.
Tip: If you are attaching multiple Forms 8949 to your return,
attach the Form(s) 8949 that lists code "Z" in column (f) first.
12

Tip: If you elect to defer tax on an eligible gain by investing in a
QOF, you will need to complete a Form 8997 for each year you
hold the investment and for the year you dispose of the
investment. If you have held that investment for more than 5
years, see the Instructions for Form 8997 for additional
information regarding the basis of that investment.

How To Report Eligible Gains From Section 1231
Property
Taxpayers deferring eligible gains from section 1231 property,
including gains from installment sales and like-kind exchanges,
by investing in a QOF must report the deferral election on Form
8949 in the tax year of the deferral. Likewise, taxpayers selling or
exchanging a QOF investment must report the inclusion of the
eligible gain on Form 8949.
Reporting the deferral election. Each QOF investment of
section 1231 gains will use two separate rows in Part II
(long-term transactions) of Form 8949.

• For the first row, in column (a), write “QOF INVESTMENT
FROM FORM 4797.” Leave columns (b) through (e) blank. Enter
code “O” in column (f), and in column (g) report the amount of
the QOF investment from Form 4797 as a positive number. For
example, if ($75,000) was reported in column (g) of Form 4797,
report $75,000 in column (g) of Form 8949.
• For the second row, in column (a), enter only the EIN of the
QOF investment. In column (b), enter the date of the QOF
investment. Leave columns (c), (d), and (e) blank. Enter code “Z”
in column (f) and the amount of the deferred gain as a negative
number (in parentheses) in column (g).
Reporting the inclusion. Each inclusion will use two separate
rows in Part II.

• For the first row, in column (a), write “QOF INCLUSION
EVENT FROM SECTION 1231 GAINS.” Leave columns (b)
through (e) blank. Enter code “O” in column (f), and in column (g)
report the amount of the included section 1231 gains to Form
4797 as a negative number (in parentheses). For example,
$75,000 inclusion of section 1231 gains was reported in column
(g) of Form 4797, report ($75,000) in column (g) of Form 8949.
• For the second row, enter the EIN of the QOF investment in
column (a). Complete columns (b) and (c). Leave columns (d)
Instructions for Form 8949 (2025)

DRAFT

DRAFT

If you received a Form 1099-B or Form 1099-DA (or substitute statement) reporting the sale of a taxable contingent payment debt instrument subject to the noncontingent
bond method, enter code “O” for the transaction in column (f) of the appropriate part of Form 8949 and complete this worksheet to figure the amount to enter in column
(g). If, in addition, any of the amounts shown on Form 1099-B or Form 1099-DA (or substitute statement) are incorrect, see How To Complete Form 8949, Columns (f) and
(g), earlier, for information on how to correct those amounts. Use the corrected amounts when completing this worksheet. Don’t use this worksheet if there are no
remaining contingent payments on the debt instrument as of the sale, exchange, or retirement of the instrument. See Regulations section 1.1275-4(b)(8)(iii).

TREASURY/IRS AND OMB USE ONLY DRAFT
and (e) blank. Enter code "Y" in column (f), and in column (g)
enter the amount of previously deferred gain as a positive
number.

How To Report Gain Previously Deferred in a
QOF Investment

Line 2

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). For example, the total of the amounts in column (h) of
line 2 of all your Forms 8949 with box A or box G checked should
equal the amount you get by combining columns (d), (e), and (g)
on line 1b of Schedule D. The total of the amounts in column (h)
of line 2 of all your Forms 8949 with box E or box K checked
should equal the amount you get by combining columns (d), (e),
and (g) on line 9 of Schedule D.

DRAFT

DRAFT

If you sold or exchanged your investment in a QOF during the tax
year, you must report the amount of eligible gain that you
previously deferred and that you are now recognizing. Report the
gain from each investment on its own row. Check box C or box I
in Part I or check box F or box L in Part II depending on whether
the gain is short term or long term. The gain you recognize will
be the same character as the gain you deferred. Put the EIN of
the QOF investment you are selling in column (a). Complete
columns (b), (c), (d), and (e). Enter code "Y" in column (f), and
enter the amount of previously deferred gain as a positive
number in column (g).

Tip: If you disposed of your investment in a QOF, you will also
need to complete Form 8997. See the instructions for Form 8997
for more information.

Instructions for Form 8949 (2025)

13