Form 8949 is the IRS form you use to report sales and other dispositions of capital assets like stocks, bonds, mutual fund shares, digital assets, and real estate held for investment. You list each transaction, total the columns, and carry those totals to Schedule D. The main job when preparing it is sorting every transaction into the right category, because Form 8949 splits short-term from long-term and then splits each of those by what kind of broker reporting you received.

What is Form 8949 used for?

Form 8949 reports the detail behind your capital gains and losses, and its totals flow to Schedule D. Part I covers short-term transactions (assets held one year or less) and Part II covers long-term transactions (assets held more than one year). For each row you enter a description, the dates acquired and sold, the proceeds, the cost or other basis, any adjustment with a code, and the resulting gain or loss.

Which box do you check on Form 8949?

You check one box per Part based on whether the transaction was reported to you on a broker form and whether that form showed your cost basis to the IRS. For short-term transactions in Part I: Box A is for transactions on a Form 1099-B showing basis was reported to the IRS, Box B is for a 1099-B showing basis was not reported to the IRS, and Box C is for transactions (other than digital assets) not reported on a 1099-B or 1099-DA at all. Part II uses the parallel set for long-term transactions: Box D, Box E, and Box F.

The split between "basis reported" and "basis not reported" usually tracks whether the asset is a covered security. For a covered security, the broker reports your basis in box 1e of Form 1099-B (or box 1g of Form 1099-DA). If box 5 on Form 1099-B (or box 9 on Form 1099-DA) is checked, the asset is noncovered and you are responsible for supplying the basis yourself.

How are digital assets reported on Form 8949 for 2025?

For 2025, digital asset transactions get their own boxes and must not be reported using Box C or Box F. Short-term digital asset transactions go in new Box G (reported on a Form 1099-DA showing basis was reported to the IRS), Box H (1099-DA showing basis not reported), or Box I (digital assets not reported on a 1099-DA). Long-term digital asset transactions use the parallel new boxes J, K, and L. These boxes are new for the 2025 tax year, tied to the start of broker reporting on Form 1099-DA.

When can you skip Form 8949 and report directly on Schedule D?

You can skip Form 8949 for certain transactions and report them directly on Schedule D, but only when no adjustments are needed. Under Exception 1, you may aggregate transactions and report them on line 1a (short-term) or line 8a (long-term) of Schedule D if your Form 1099-B (or 1099-DA) shows basis was reported to the IRS, shows no adjustments in the relevant boxes, does not have the Ordinary box checked, and you have no adjustments to make and no Qualified Opportunity Fund election. This exception does not apply to sales of collectibles. If a transaction needs any adjustment, it stays on Form 8949.

How do you report a wash sale on Form 8949?

A nondeductible wash sale loss is reported by entering code W in column (f) and the disallowed loss amount as a positive number in column (g). You still report the sale on Form 8949 as usual; the code-W adjustment is what prevents the disallowed portion of the loss from reducing your gain. If a broker already reported a nondeductible wash sale loss in box 1g of Form 1099-B (or box 1i of Form 1099-DA) and the amount is wrong, you enter the correct amount as a positive number in column (g). Code W is one of several column (f) adjustment codes; others include code B for an incorrect basis shown on a broker form and code T for an incorrect type of gain or loss.

A preparer's checklist for Form 8949

At firm scale, accuracy on Form 8949 comes down to classifying each transaction correctly before any totals are calculated. A working checklist: confirm the holding period to place each transaction in Part I or Part II; match every transaction to the right box (A–F for securities, G–L for digital assets) using the broker form and whether basis was reported; separate covered from noncovered securities so the basis source is clear; flag any transaction carrying a wash sale, an incorrect basis, or a type mismatch for a column (f) code; and check whether Exception 1 lets clean covered transactions roll straight to Schedule D. The work that takes the most review time is reconciling broker 1099-B and 1099-DA data against the client's own records, since that is where basis errors and miscategorized boxes surface.

This is the kind of line-by-line classification and reconciliation that benefits from being handled consistently across a whole book of returns rather than reworked client by client. For a related reference on reading partnership broker-style detail, see our Schedule K-1 (Form 1065) guide.