2019 Department of the Treasury

Internal Revenue Service

Instructions for Form 8949

Sales and Other Dispositions of Capital Assets
Section references are to the Internal Revenue statements), always report the proceeds dividends-received deduction under
Code unless otherwise noted. (sales price) shown on the form (or section 245A, but only if the sale would
statement) in column (d) of Form 8949. If otherwise generate a loss.
Future Developments Form 1099-B (or substitute statement) • Nonbusiness bad debts.
For the latest information about shows that the cost or other basis was • Undistributed long-term capital gains
developments related to Form 8949 and reported to the IRS, always report the from Form 2439.
its instructions, such as legislation basis shown on that form (or statement) in • Worthlessness of a security.
enacted after they were published, go to column (e). If any correction or adjustment • The election to defer capital gain
IRS.gov/Form8949. to these amounts is needed, make it in invested in a QOF.
column (g). See How To Complete Form • The disposition of interests in QOFs.
What's New 8949, Columns (f) and (g), later, for details Corporations also use Form 8949 to
about these adjustments. report their share of gain or (loss) from a
Reporting of deferred gain from sale
If all Forms 1099-B (or all substitute partnership, estate, or trust.
or exchange of qualified opportunity
fund (QOF) investment. If you sold or statements) you received show basis was For corporations and partnerships
exchanged your investment in a QOF and reported to the IRS and no correction or meeting certain criteria, an exception to
you need to report the gain previously adjustment is needed, you may not need some of the normal requirements for
deferred, you will need to report the gain to file Form 8949. See Exception 1 under completing Form 8949 has been provided.
on Form 8949. See How To Report Gain the instructions for line 1, later. See Special provision for certain
Previously Deferred in a QOF Investment, corporations, partnerships, securities
If you received a Schedule A to Form dealers, and other qualified entities under
later. 8971 for property and Part 2, column C, of the instructions for line 1, later.
New reporting form for QOF invest- the Schedule A indicates that the property
ments. Form 8997, Initial and Annual increased the estate tax liability, you will Estates and trusts. Estates and trusts
Statement of Qualified Opportunity Fund be required to report a basis consistent use Form 8949 to report the following.
(QOF) Investments, is a new form for tax with the final estate tax value of the • The sale or exchange of a capital asset
year 2019. Form 8997 is used to report property reported in Part 2, column E, of not reported on another form or schedule.
holdings, deferred gains, and dispositions the schedule. See Schedule A to Form • Nonbusiness bad debts.
of QOF investments. 8971—Consistent basis reporting under • Worthlessness of a security.
Column (e)—Cost or Other Basis, later, for • The election to defer capital gain
Gain on empowerment zone stock. For more information on consistent basis invested in a QOF.
dispositions of empowerment zone reporting and the amount you will report • The disposition of interests in QOFs.
business stock after 2018, the qualified on Form 8949.
gain attributable to periods after Schedule D. Use Schedule D for the
December 31, 2018, is not eligible for the Individuals. Individuals use Form 8949 following purposes.
60% exclusion. See the Instructions for to report the following. • To figure the overall gain or (loss) from
Schedule D (Form 1040 or 1040-SR) for • The sale or exchange of a capital asset transactions reported on Form 8949.
more information. not reported on another form or schedule. • To report a gain from Form 6252 or Part
• Gains from involuntary conversions I of Form 4797.
• To report a gain or (loss) from Form
General Instructions (other than from casualty or theft) of
capital assets not used in your trade or 4684, 6781, or 8824.
business. • To report capital gain distributions not
File Form 8949 with the Schedule D for • Nonbusiness bad debts. reported directly on Form 1040 or
the return you are filing. This includes • Worthlessness of a security. 1040-SR, line 6 (or effectively connected
Schedule D of Forms 1040, 1040-SR, • The election to defer capital gain capital gain distributions not reported
1041, 1065, 8865, 1120, 1120-S, 1120-C, invested in a QOF. directly on Form 1040-NR, line 14).
1120-F, 1120-FSC, 1120-H, • The disposition of interests in QOFs. • To report a capital loss carryover from
1120-IC-DISC, 1120-L, 1120-ND, the previous tax year to the current tax
1120-PC, 1120-POL, 1120-REIT, If you are filing a joint return, complete
as many copies of Form 8949 as you need year.
1120-RIC, and 1120-SF; and certain • To report your share of a gain or (loss)
Forms 990-T. to report all of your and your spouse's
transactions. You and your spouse may from a partnership, S corporation, estate,
list your transactions on separate forms or or trust. (However, corporations report this
Complete Form 8949 before you complete
you may combine them. However, you type of gain or (loss) on Form 8949.)
line 1b, 2, 3, 8b, 9, or 10 of Schedule D.
must include on your Schedule D the • To report certain transactions you don't
have to report on Form 8949, such as
Purpose of Form totals from all Forms 8949 for both you
transactions reported to you on a Form
and your spouse.
Use Form 8949 to report sales and 1099-B (or substitute statement) showing
exchanges of capital assets. Form 8949 Corporations and partnerships. basis was reported to the IRS and for
allows you and the IRS to reconcile Corporations and partnerships use Form which you have no adjustments, as
amounts that were reported to you and the 8949 to report the following. explained under Exception 1, later.
IRS on Forms 1099-B or 1099-S (or • The sale or exchange of a capital asset Individuals, estates, and trusts also use
substitute statements) with the amounts not reported on another form or schedule. Schedule D to report undistributed
you report on your return. If you receive • Sale of stock of a specified 10%-owned long-term capital gains from Form 2439.
Forms 1099-B or 1099-S (or substitute foreign corporation, adjusted for the

Dec 11, 2019 Cat. No. 59421Z

Additional information. See the The IRS partners with companies appropriate Part of Form 8949. Report a
instructions for the Schedule D you are that offer Form 8949 software that net short-term capital gain or (loss) on Part
filing for detailed information about other can import trades from many I (with box C checked) and a net long-term
topics, including the following. brokerage firms and accounting software capital gain or (loss) on Part II (with box F
• Other forms you may have to file. that can help you keep track of your checked). In column (a), enter “From
• The definition of capital asset. adjusted basis in securities. To find out Schedule K-1 (Form 1065)” or “From
• Certain virtual currencies, such as more, go to IRS.gov/Efile. Schedule K-1 (Form 1041),” whichever
Bitcoin. Also see the instructions for applies; enter the gain or (loss) in column
Schedule 1 (Form 1040 or 1040-SR) and Short-Term or Long-Term (h); and leave all other columns blank.
IRS.gov/VirtualCurrencyFAQs. Separate your capital gains and losses If more than one Schedule K-1 is
• Reporting capital gain distributions, according to how long you held or owned received, report each on a separate row.
undistributed capital gains, the sale of a the property. Include additional identifying information,
main home, the sale of capital assets held such as “Partnership X.”
for personal use, or the sale of a The holding period for short-term
partnership interest. capital gains and losses is generally 1 Rounding Off to Whole Dollars
• Capital losses, nondeductible losses, year or less. Certain partnership interests
held in connection with the performance of You can round off cents to whole dollars
and losses from wash sales. on Form 8949. If you do round to whole
• Traders in securities. services may be subject to different
holding period rules. See the Schedule D dollars, round all amounts. To round, drop
• Short sales. cent amounts under 50 cents and
• Gain or loss from options. instructions for more information. Report
these transactions on Part I of Form 8949 increase cent amounts over 49 cents to
• Installment sales. the next dollar. For example, $1.49
• Demutualization of life insurance (or line 1a of Schedule D if you can use
Exception 1 under the instructions for becomes $1 and $1.50 becomes $2.
companies.
• Exclusion or rollover of gain from the Form 8949, line 1, later).
sale of qualified small business stock. The holding period for long-term capital Specific Instructions
• Any other rollover of gain. gains and losses is generally more than 1
• Exclusion of gain from the sale or year. Certain partnership interests held in
Report short-term gains and losses on
exchange of DC Zone assets or qualified Part I. Report long-term gains and losses
connection with the performance of
community assets. on Part II.
services may be subject to different
• Deferral of gain invested in a QOF. holding period rules. See the Schedule D
• Certain other items that get special instructions for more information. Report Line 1
treatment. these transactions on Part II of Form 8949 Enter all sales and exchanges of capital
• Special reporting rules for corporations, (or line 8a of Schedule D if you can use assets, including stocks, bonds, and real
partnerships, estates, and trusts in certain Exception 1 under the instructions for estate (if not reported on line 1a or 8a of
situations. Form 8949, line 1, later). Schedule D or on Form 4684, 4797, 6252,
For more information about reporting 6781, or 8824). Include these transactions
on Forms 6252, 4797, 4684, 6781, and To figure the holding period, begin even if you didn't receive a Form 1099-B
8824, see the instructions for those forms. counting on the day after you received the or 1099-S (or substitute statement) for the
See Pub. 544 and Pub. 550 for more property and include the day you disposed transaction. However, if the property you
details. of it. sold was your main home, see Sale of
Generally, if you disposed of property Your Home in the Instructions for
Basis and Recordkeeping Schedule D (Form 1040 or 1040-SR).
that you acquired by inheritance, report
Basis is the amount of your investment in the disposition as a long-term gain or
property for tax purposes. The basis of Enter all losses from the disposition of
(loss) regardless of how long you held the a portion of a MACRS asset not used in a
property you buy is usually its cost. You property.
need to know your basis to figure any gain trade or business but held for investment
or (loss) on the sale or other disposition of A nonbusiness bad debt must be or for use in a not-for-profit activity. If you
the property. You must keep accurate treated as a short-term capital loss. See have a gain from the partial disposition of
records that show the basis and, if Pub. 550 for what qualifies as a a MACRS asset, see Disposition of
applicable, adjusted basis of your nonbusiness bad debt and how to enter it Depreciable Property Not Used in Trade
property. Your records should show the on Part I of Form 8949. or Business in the Form 4797 instructions.
purchase price, including commissions;
Form 1099-B. If you received a Form Enter the details of each transaction on
increases to basis, such as the cost of
1099-B (or substitute statement) for a a separate row (unless one of the
improvements; and decreases to basis,
transaction, box 2 may help you determine Exceptions to reporting each transaction
such as depreciation, nondividend
whether your gain or (loss) is short term or on a separate row, described later, applies
distributions on stock, and stock splits.
long term or subject to special rules. If to you).
For more information on basis, see box 2 is blank and code X is in the
Part I. Use a separate Part I for each type
Column (e)—Cost or Other Basis, later, "Applicable checkbox on Form 8949" box
of short-term transaction described in the
and these publications. near the top of Form 1099-B, your broker
text for one of the boxes (A, B, or C) at the
• Pub. 550, Investment Income and doesn't know whether your gain or (loss) is
top of Part I. Include on each Part I only
Expenses. short term or long term. Use your own
transactions described in the text for the
• Pub. 551, Basis of Assets. records to determine whether your gain or
box you check (A, B, or C). Check only
(loss) is short term or long term.
If you lost or didn't keep records to one box on each Part I. For example, if
determine your basis in securities, contact Corporation's Gains and you check box A in one Part I, include on
your broker for help. If you receive a Form Losses From Partnerships, that Part I only short-term transactions
1099-B (or substitute statement), your reported to you on a statement showing
broker may have reported your basis for
Estates, or Trusts basis was reported to the IRS. Complete
these securities in box 1e. Report a corporation's share of capital as many copies of Part I as you need to
gains and losses from investments in report all transactions of each type (A, B,
partnerships, estates, or trusts on the or C).

-2- Instructions for Form 8949 (2019)

 If you are attaching multiple Forms If you are attaching multiple Forms row of Part I or II. Any taxpayer who
8949 to your return, attach the Form(s) 8949 to your return, attach the Form(s) qualifies can use Exception 1 or Exception
8949 that lists code "Z" in column (f) first. 8949 that lists code "Z" in column (f) first. 2 below. Taxpayers who file Form 1120-S
If you received a Form 1099-B for a If you received a Form 1099-B for a or 1065 and other qualified entities should
transaction, the “Applicable checkbox on transaction, the “Applicable checkbox on see Special provision for certain
Form 8949” box near the top of that form Form 8949” box near the top of that form corporations, partnerships, securities
may help you determine which box to may help you determine which box to dealers, and other qualified entities, later.
check on the Part I where you report that check on the Part II where you report that Exception 1. Form 8949 isn't required
transaction. A substitute statement you transaction. A substitute statement you for certain transactions. You may be able
get instead of Form 1099-B may also tell get instead of Form 1099-B may also tell to aggregate those transactions and report
you which box to check. you which box to check. them directly on either line 1a (for
Box A. Report on a Part I with box A Box D. Report on a Part II with box D short-term transactions) or line 8a (for
checked all short-term transactions checked all long-term transactions long-term transactions) of Schedule D.
reported to you on Form 1099-B (or reported to you on Form 1099-B (or This option applies only to transactions
substitute statement) with an amount substitute statement) with an amount (other than sales of collectibles) for which:
shown for cost or other basis unless the shown for cost or other basis unless the • You received a Form 1099-B (or
statement indicates that amount wasn't statement indicates that amount wasn't substitute statement) that shows basis
reported to the IRS. If your statement reported to the IRS. If your statement was reported to the IRS and doesn't show
shows cost or other basis but indicates it shows cost or other basis but indicates it any adjustments in box 1f or 1g;
wasn't reported to the IRS (for example, if wasn't reported to the IRS (for example, if • The Ordinary box in box 2 isn’t
box 3 of Form 1099-B isn't checked), see box 3 of Form 1099-B isn't checked), see checked;
Box B below. Box E below. • You don't need to make any
adjustments to the basis or type of gain or
If you don't need to make any If you don't need to make any (loss) reported on Form 1099-B (or
TIP adjustments to the basis or type of TIP adjustments to the basis or type of substitute statement), or to your gain or
gain or (loss) reported to you on gain or (loss) reported to you on (loss); and
Form 1099-B (or substitute statement) or Form 1099-B (or substitute statement) or • You aren’t electing to defer income due
to your gain or (loss) for any transactions to your gain or (loss) for any transactions to an investment in a QOF and aren’t
for which basis has been reported to the for which basis has been reported to the terminating deferral from an investment in
IRS (normally reported on Form 8949 with IRS (normally reported on Form 8949 with a QOF.
box A checked), you don't have to include box D checked), you don't have to include
If you choose to report these
those transactions on Form 8949. Instead, those transactions on Form 8949. Instead,
transactions directly on Schedule D, you
you can report summary information for you can report summary information for
don't need to include them on Form 8949
those transactions directly on Schedule D. those transactions directly on Schedule D.
and don't need to attach a statement. For
For more information, see Exception 1, For more information, see Exception 1,
more information, see the Schedule D
later. later.
instructions.
Box B. Report on a Part I with box B Box E. Report on a Part II with box E If you qualify to use Exception 1 and
checked all short-term transactions checked all long-term transactions also qualify to use Exception 2, you can
reported to you on Form 1099-B (or reported to you on Form 1099-B (or use both. Report the transactions that
substitute statement) without an amount substitute statement) without an amount qualify for Exception 1 directly on either
shown for cost or other basis or showing shown for cost or other basis or showing line 1a or 8a of Schedule D, whichever
that cost or other basis wasn't reported to that cost or other basis wasn't reported to applies. Report the rest of your
the IRS. If your statement shows cost or the IRS. If your statement shows cost or transactions as explained in Exception 2.
other basis for the transaction was other basis for the transaction was Exception 2. Instead of reporting
reported to the IRS (for example, if box 3 reported to the IRS (for example, if box 3 each of your transactions on a separate
of Form 1099-B is checked), see Box A of Form 1099-B is checked), see Box D row of Part I or II, you can report them on
above. above. an attached statement containing all the
Box C. Report on a Part I with box C Box F. Report on a Part II with box F same information as Parts I and II and in a
checked all short-term transactions for checked all long-term transactions for similar format (that is, description of
which you can't check box A or B because which you can't check box D or E because property, dates of acquisition and
you didn't receive a Form 1099-B (or you didn't receive a Form 1099-B (or disposition, proceeds, basis, adjustment
substitute statement). substitute statement). and code(s), and gain or (loss)). Use as
many attached statements as you need.
Part II. Use a separate Part II for each You don't need to complete and file an Enter the combined totals from all your
type of long-term transaction described in entire copy of Form 8949 (Parts I and II) if attached statements on Parts I and II with
the text for one of the boxes (D, E, or F) at you can check a single box to describe all the appropriate box checked.
the top of Part II. Include on each Part II your transactions. In that case, complete
and file either Part I or II and check the box For example, report on Part I with box B
only transactions described in the text for
that describes the transactions. checked all short-term gains and losses
the box you check (D, E, or F). Check only
Otherwise, complete a separate Part I or II from transactions your broker reported to
one box on each Part II. For example, if
for each category of your transactions, as you on a statement showing basis wasn't
you check box D in one Part II, include on
described above. reported to the IRS. Enter the name of the
that Part II only long-term transactions
broker followed by the words “see
reported to you on a statement showing Include on your Schedule D the totals attached statement” in column (a). Leave
basis was reported to the IRS. Complete from all your Parts I and II. Form 8949 and columns (b) and (c) blank. Enter “M” in
as many copies of Part II as you need to Schedule D explain how to do this. column (f). If other codes also apply, enter
report all transactions of each type (D, E,
Exceptions to reporting each transac- all of them in column (f). Enter the totals
or F).
tion on a separate row. There are that apply in columns (d), (e), (g), and (h).
exceptions to the rule that you must report If you have statements from more than
each of your transactions on a separate

Instructions for Form 8949 (2019) -3-

one broker, report the totals from each PDF attachment to your return, or (b) If you received a Form 1099-B (or
broker on a separate row. attach Form 8949 to Form 8453 (or the substitute statement) reporting the sale of
Don't enter “Available upon request” appropriate form in the Form 8453 series) a taxable contingent payment debt
and summary totals in lieu of reporting the and mail the forms to the IRS. (However, instrument subject to the noncontingent
details of each transaction on Part I or II or you can't attach a paper Form 8949 to bond method and the Ordinary box in
attached statements. Form 8453-FE.) You can attach one or box 2 is checked, an adjustment may be
more statements containing all the same required. See the Worksheet for
Exception 2 is not available for the information as Form 8949, instead of Contingent Payment Debt Instrument
! election to defer eligible gain by attaching Form 8949, if the statements are Adjustment in Column (g), later, to figure
CAUTION investing in a QOF. Taxpayers
in a format similar to Form 8949. the adjustment to enter in column (g).
who elect to defer eligible gain must report
However, this doesn't apply to See Pub. 550 or Pub. 1212 for more
the details of each investment in a QOF on
transactions that qualify for Exception 1 or details on any special rules or adjustments
Form 8949 in the manner described under
the Special provision for certain that might apply.
How To Report an Election To Defer Tax
corporations, partnerships, securities
on Eligible Gain Invested in a QOF, later. Net asset value (NAV) method for
dealers, and other qualified entities,
money market funds. If you have a
earlier. In those cases, neither an
Special provision for certain capital gain or (loss) determined under the
attachment, a statement, nor Form 8453 is
corporations, partnerships, securities NAV method with respect to shares in a
required.
dealers, and other qualified entities. money market fund, enter the name of the
This special provision applies to certain Charitable gift annuity. If you are the fund followed by “(NAV)” in column (a) on
corporations, partnerships, securities beneficiary of a charitable gift annuity and a Part I with box C checked. Enter the net
dealers, and nonprofit organizations. receive a Form 1099-R showing an gain or (loss) in column (h). Leave all other
Individual taxpayers aren't eligible except amount in box 3, report the box 3 amount columns blank. No long-term capital gain
in rare circumstances. on a Part II with box F checked. Enter or (loss) can be entered under the NAV
You may enter summary totals instead “Form 1099-R” in column (a). Enter the method.
of reporting the details of each transaction box 3 amount in column (d). Also,
Nondividend distributions.
on a separate row of Part I or II or on complete column (h).
Distributions from a corporation that are a
attached statements if: Form 2438. Enter any net short-term return of your cost (or other basis) aren't
1. You file Form 1120-S, 1065, or are capital gain from line 4 of Form 2438 on a taxed until you recover your cost (or other
a taxpayer exempt from receiving Form Part I with box C checked. Enter “Net basis). Reduce your cost (or other basis)
1099-B, such as a corporation or exempt short-term capital gain from Form 2438, by these distributions, but not below zero.
organization, under Regulations section line 4” in column (a), enter the gain in After you have recovered your entire cost
1.6045-1(c)(3)(i)(B); and column (h), and leave all other columns (or other basis), any later nondividend
blank. distribution is taxable as a capital gain.
2. You must report more than five
Enter any amount from line 12 of Form Enter the name of the payer of any taxable
transactions for that Part.
2438 on a Part II with box F checked. nondividend distributions in column (a) on
If this provision applies to you, enter the Enter “Undistributed capital gains not a Part I with box C checked or Part II with
summary totals on line 1. For short-term designated (from Form 2438)” in column box F checked (depending on how long
transactions, check box C at the top of (a), enter the amount of the gain in column you held the stock). Enter the taxable part
Part I even if the summary totals include (h), and leave all other columns blank. of the distribution in columns (d) and (h).
transactions described in the text for box Each payer of a nondividend distribution
A or B. For long-term transactions, check Form 2439. Corporations and should send you a Form 1099-DIV
box F at the top of Part II even if the partnerships report undistributed showing the amount of the distribution in
summary totals include transactions long-term capital gains from Form 2439 on box 3.
described in the text for box D or E. Enter a Part II with box F checked. Enter “From
Form 2439” in column (a), enter the gain in Dispositions of depreciable property
“Available upon request” in column (a). not used in a trade or business. Report
Leave columns (b) and (c) blank. Enter column (h), and leave all other columns
blank. Individuals report undistributed on Form 8949 a loss from the sale or
“M” in column (f). If other codes also exchange of depreciable property not
apply, enter all of them in column (f). Enter long-term capital gains from Form 2439 on
line 11 of Schedule D (Form 1040 or used in a trade or business but held for
the totals that apply in columns (d), (e), investment or for use in a not-for-profit
(g), and (h). 1040-SR). Estates and trusts report those
amounts on line 11 of Schedule D (Form activity. If you have a gain from the sale of
Don't use a separate row for the totals 1041). such property, see Disposition of
from each broker. Instead, enter the Depreciable Property Not Used in Trade
summary totals from all brokers on a Contingent payment debt instruments. or Business in the Form 4797 instructions.
single row of Part I (with box C checked) If you sell a taxable contingent payment
or Part II (with box F checked). debt instrument subject to the Other gains or (losses) where sales
noncontingent bond method at a gain, price or basis isn't known. If you have
This special provision is not your gain is ordinary income (interest another gain or (loss) for which you don't
! available for the election to defer income), even if you hold the debt know the sales price or basis (such as a
CAUTION eligible gain by investing in a QOF.
instrument as a capital asset. If you sell a long-term capital gain from Form 8621),
Taxpayers who elect to defer eligible gain taxable contingent payment debt enter a description of the gain or (loss) in
must report the details of each investment instrument subject to the noncontingent column (a) on a Part I with box C checked
in a QOF on Form 8949 in the manner bond method at a loss, your loss is an or Part II with box F checked (depending
described under How To Report an ordinary loss to the extent of your prior on how long you held the property). If you
Election To Defer Tax on Eligible Gain original issue discount (OID) inclusions on have a gain, enter it in columns (d) and
Invested in a QOF, later. the debt instrument. If the debt instrument (h). If you have a loss, enter it in columns
is a capital asset, treat any loss that is (e) and (h). Complete any other columns
E-file. If you e-file your return but choose you can.
more than your prior OID inclusions as a
not to report each transaction on a
capital loss. See Regulations section
separate row on the electronic return, you
1.1275-4(b) for exceptions to these rules.
must either (a) include Form 8949 as a

-4- Instructions for Form 8949 (2019)

Column (a)—Description of didn't receive a Form 1099-B or 1099-S price or fair market value, whichever
(or substitute statement) for a transaction, applies, on the date of the deemed sale
Property enter in column (d) the net proceeds. The and reacquisition, whether the deemed
For stock, include the number of shares. net proceeds equal the gross proceeds sale resulted in a gain or an unallowed
You can use stock ticker symbols or minus any selling expenses (such as loss.
abbreviations to describe the property as broker’s fees, commissions, and state and
long as they are based on the descriptions Schedule A to Form 8971—Consistent
local transfer taxes). If you sold a call
of the property as shown on Form 1099-B basis reporting. If you received a
option and it was exercised, you adjust the
or 1099-S (or substitute statement). Schedule A to Form 8971 from an
sales price of the property sold under the
executor of an estate or other person
If you inherited the property from option for any option premiums (as
required to file an estate tax return and
someone who died in 2010 and the instructed in Gain or Loss From Options in
you are a beneficiary who receives (or is
executor of the estate made the election to the Instructions for Schedule D (Form
to receive) property from that estate, you
file Form 8939, also enter “INH-2010” in 1040 or 1040-SR)).
will be required to report a basis
column (a). You received a Form 1099-B or 1099-S consistent with the final estate tax value of
(or substitute statement). If you the property if Part 2, column C, of the
Column (b)—Date Acquired received a Form 1099-B or 1099-S (or Schedule A you received indicates that
Enter in this column the date you acquired substitute statement) for a transaction, the property increased the estate tax
the property. Enter the trade date for enter in column (d) the proceeds shown liability of the decedent. In this case, first
stocks and bonds you purchased on an on the form or statement you received. If use an amount that is equal to or less than
exchange or over-the-counter market. For there are any selling expenses or option the final estate tax value listed in Part 2,
a short sale, enter the date you acquired premiums that aren't reflected on the form column E, of the Schedule A. This amount
the property delivered to the broker or or statement you received (by an is your initial basis in the property. You
lender to close the short sale. For property adjustment to either the proceeds or basis then adjust your initial basis in the
you previously elected to treat as having shown), enter “E” in column (f) and the property, as described under Adjustments
been sold and reacquired on January 1, necessary adjustment in column (g). See to basis, later. The resulting amount is
2001 (or January 2, 2001, for readily the example under Column entered in column (e) of Form 8949.
tradeable stock), enter the date of the (g)—Adjustments to Gain or (Loss), later.
deemed sale and reacquisition. If you received a supplemental
If the proceeds you received were TIP Schedule A to Form 8971, use the
If you received a Form 1099-B (or more than shown on Form 1099-B or most recently dated supplemental
substitute statement), box 1b may help 1099-S (or substitute statement), enter the Schedule A to determine your initial basis.
you determine when you acquired the correct proceeds in column (d). This might
property. happen if, for example, box 4 on Form Penalties for inconsistent basis
1099-S is checked. reporting. If you use an initial basis that
Inherited property. Generally, if you
disposed of property that you acquired by You shouldn't have received a Form is more than the amount listed in Part 2,
inheritance, report the sale or exchange 1099-B (or substitute statement) for a column E, of the Schedule A to figure your
on a Part II with the appropriate box transaction merely representing the return basis in the property and Part 2, column C,
checked (D, E, or F). Enter “INHERITED” of your original investment in a of the Schedule A indicates that the
in column (b). nontransferable obligation, such as a property increased the estate tax liability
savings bond or a certificate of deposit. of the decedent, you may be subject to a
Stock acquired on various dates. If you But if you did, report the proceeds shown penalty equal to 20% of any resulting
sold a block of stock (or similar property) on Form 1099-B (or substitute statement) underpayment of tax because the basis
that you acquired through several different in both columns (d) and (e). reported isn’t consistent with the final
purchases, you may report the sale on one estate tax value of the property.
row and enter “VARIOUS” in column (b). Column (e)—Cost or Other
However, you still must report the Basis For more details, see Pub. 551; Pub.
short-term gain or (loss) on the sale on 550; or the instructions for Form 8971 and
The basis of property you buy is usually its Schedule A, available at IRS.gov/
Part I and the long-term gain or (loss) on cost, including the purchase price and any
Part II. Form8971.
costs of purchase, such as commissions.
Column (c)—Date Sold or You may not be able to use the actual cost Adjustments to basis. Before you can
as the basis if you inherited the property, figure any gain or (loss) on a sale,
Disposed Of got it as a gift, or received it in a tax-free exchange, or other disposition of property,
Enter in this column the date you sold or exchange or involuntary conversion or in you must usually make certain
disposed of the property. Use the trade connection with a “wash sale.” If you don't adjustments (increases and decreases) to
date for stocks and bonds traded on an use the actual cost, attach an explanation the basis of the property. Increase the
exchange or over-the-counter market. For of your basis. basis of your property by capital
a short sale, enter the date you delivered improvements. Decrease it by
the property to the broker or lender to The basis of property acquired by gift is depreciation, amortization, and depletion.
close the short sale. generally the basis of the property in the Other adjustments may be necessary for
hands of the donor. The basis of inherited your property. See Pub. 551 for more
If you received a Form 1099-B (or property is generally the fair market value information.
substitute statement), box 1c may help at the date of death. See Pub. 551 for
you determine when you sold or disposed If you sold stock, adjust your basis by
details.
of the property. subtracting all the nondividend
If you sold property that you inherited distributions you received before the sale.
Column (d)—Proceeds (Sales from someone who died in 2010 and the Also, adjust your basis for any stock splits.
Price) executor made the election to file Form See Pub. 550 for details. See Form
8939, see Pub. 4895. 1099-B and How To Complete Form 8949,
Follow the instructions below that apply to
Columns (f) and (g), later, for the
your transaction(s).
If you elected to recognize gain on adjustment you must make if you received
You didn't receive a Form 1099-B or property held on January 1, 2001, your a Form 1099-B (or substitute statement)
1099-S (or substitute statement). If you basis in the property is its closing market and the basis shown in box 1e is incorrect.

Instructions for Form 8949 (2019) -5-

 Increase the cost or other basis of a shares of stock if the shares are identical If box 5 on Form 1099-B (or substitute
taxable OID debt instrument by the to each other, you acquired them at statement) is checked, the property sold
amount of OID that you have included in different prices and left them in an account wasn't a covered security.
gross income for that instrument. See with a custodian or agent, and either: Enter the basis shown on Form 1099-B
Pub. 550 for details. • They are shares in a mutual fund (or (or substitute statement) in column (e). If
other regulated investment company); the basis shown on Form 1099-B (or
Increase the cost or other basis of a • They are shares you hold in connection
tax-exempt OID debt instrument by the substitute statement) isn't correct, see
with a dividend reinvestment plan (DRP), How To Complete Form 8949, Columns (f)
amount of tax-exempt OID that accrued on and all the shares you hold in connection
the debt instrument while held by you. See and (g), later, for the adjustment you must
with the DRP are treated as covered make.
Pub. 550 for details. securities (defined below); or
• You acquired them after 2011 in Enter the correct basis of the property
If you elect to currently include in in column (e) if:
income the market discount on a bond, connection with a DRP.
Shares are identical if they have the same • No basis is shown on Form 1099-B (or
increase the basis of the bond by the substitute statement), or
market discount that has been included in CUSIP number, except that shares of
stock in a DRP aren't identical to shares of • The basis shown wasn't reported to the
income for that bond. See Pub. 550 for IRS.
details. stock that aren't in a DRP, even if they
have the same CUSIP number. (CUSIP Column (f)—Code
If you elect to amortize bond premium numbers are security identification
In order to explain any adjustment to gain
on a taxable bond, reduce the basis of the numbers.)
or (loss) in column (g), enter the
bond by any bond premium amortization If you are using the average basis appropriate code(s) in column (f). See
allowed as either an offset to interest method and received a Form 1099-B (or How To Complete Form 8949, Columns (f)
income or as a deduction for that bond. substitute statement) that shows an and (g), later. If more than one code
Reduce the basis of a tax-exempt bond by incorrect basis, enter “B” in column (f), applies, enter all the codes that apply in
any bond premium amortization for that enter the basis shown on Form 1099-B (or alphabetical order (for example, “BOQ”).
bond. See Pub. 550 for details. substitute statement) in column (e), and Don't separate the codes by a space or
If a charitable contribution deduction is see How To Complete Form 8949, comma.
allowable because of a bargain sale of Columns (f) and (g), later. For details on
property to a charitable organization, you making the election and figuring average Column (g)—Adjustments to
must allocate your basis in the property basis, see section 1012, Pub. 550, and Gain or (Loss)
between the part sold and the part Regulations section 1.1012-1(e). Enter in this column any necessary
contributed based on the fair market value Form 1099-B. If the property you sold adjustments to gain or (loss). Enter
of each. See Pub. 544 for details. was a covered security, its basis should negative amounts in parentheses. Also,
be shown in box 1e of the Form 1099-B enter a code in column (f) to explain the
For compensatory options granted (or substitute statement) you received adjustment. See How To Complete Form
after 2013, the basis information reported from your broker. Generally, a covered 8949, Columns (f) and (g), later.
to you on Form 1099-B (or substitute security is any of the following.
statement) won’t reflect any amount you More than one code. If you entered
included in income upon grant or exercise
• Stock you acquired after 2010
(generally after 2011, if in a mutual fund or more than one code in column (f) on the
of the option. Increase your basis by any other regulated investment company, or same row, enter the net adjustment in
amount you included in income upon grant acquired through a DRP). column (g). For example, if one
or exercise of the option. For adjustment is $5,000 and another is
compensatory options granted before
• Certain stock held in a mutual fund or in
connection with a DRP for which a ($1,000), enter $4,000 ($5,000 − $1,000).
2014, any basis information reported to single-account election is in effect.
you on Form 1099-B (or substitute Example. You sold your main home in
statement) may or may not reflect any
• Certain debt instruments you acquired 2019 for $320,000 and received a Form
after 2013. 1099-S showing the $320,000 gross
amount you included in income upon grant
or exercise of the option; therefore, the
• Certain options, warrants, and stock proceeds. The home's basis was
rights you granted or acquired after 2013. $100,000. You had selling expenses of
basis may need to be adjusted. If the basis
information reported to you on Form
• A securities future contract you entered $20,000 that weren’t included on your
into after 2013. Form 1099-S. Under the tests described in
1099-B (or substitute statement) doesn’t
reflect an amount you included in income
• Variable rate debt instruments acquired Sale of Your Home in the Instructions for
after 2015. Schedule D (Form 1040 or 1040-SR), you
upon grant or exercise of the option,
increase your basis by the amount you
• Inflation-indexed debt instruments can exclude the entire $200,000 gain from
acquired after 2015. income. On Form 8949, Part II, check box
included in income upon grant or exercise
of the option. See Pub. 525 for more
• Contingent payment debt instruments F at the top. Complete columns (a), (b),
acquired after 2015. and (c). Enter $320,000 in column (d) and
information.
• Convertible debt instruments acquired $100,000 in column (e). Enter “EH” in
Solely for purposes of calculating a after 2015. column (f). In column (g), enter $220,000
loss on the sale of the stock of a specified • Options on debt instruments with ($20,000 selling expenses + $200,000
10%-owned foreign corporation, if a payments denominated in (or determined exclusion) as a negative number. Put it in
corporate shareholder received an actual by reference to) a currency other than the parentheses to show it is negative. In
or constructive dividend after December U.S. dollar and granted or acquired after column (h), enter -0- ($320,000 −
31, 2017, and that dividend qualified for 2015. $100,000 − $220,000). If this is your only
the 100% dividends-received deduction, • Options issued as part of investment transaction on this Part II, enter $320,000
the shareholder must reduce its basis in units and granted or acquired after 2015. in column (d) on line 10 of Schedule D
the controlled foreign corporation stock in For more information on covered (Form 1040 or 1040-SR), $100,000 in
the amount of the dividend received, but securities, see section 6045(g) and column (e), ($220,000) in column (g),
not below zero. Regulations section 1.6045-1. and -0- in column (h).
Average basis. You can use the average
basis method to determine the basis of

-6- Instructions for Form 8949 (2019)

 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 or 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

IF . . . AND. . .
in column (f) . . .

You received a Form 1099-B (or substitute • If this transaction is reported on a Part I with box B
statement) and the basis shown in box 1e is checked at the top or if this transaction is reported on a
incorrect Part II with box E checked at the top, enter the correct
basis in column (e), and enter -0- in column (g).
• If this transaction is reported on a Part I with box A
checked at the top or if this transaction is reported on a
Part II with box D checked at the top, enter the basis shown
B
on Form 1099-B (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.
You received a Form 1099-B (or substitute Report the transaction on the correct Part of Form 8949,
statement) and the type of gain or (loss) T and enter -0- in column (g) on that Part of the form if there
shown in box 2 is incorrect are no adjustments needed for the transaction.

TIP
If you received a Form 1099-B
(or substitute statement) with the Ordinary
box in box 2 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).
You received a Form 1099-B or 1099-S (or Report the transaction on Form 8949 as you would if you
substitute statement) as a nominee for the were the actual owner, but also enter any resulting gain as
actual owner of the property a negative adjustment (in parentheses) in column (g) or
any resulting loss as a positive adjustment in column (g).
N 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 or 1040-SR).
You sold or exchanged your main home at Report the sale or exchange on Form 8949 as you would if
a gain, must report the sale or exchange on you weren't taking the exclusion. Then enter the amount of
Part II of Form 8949 (as explained in Sale of excluded (nontaxable) gain as a negative number (in
H
Your Home in the Instructions for parentheses) in column (g). See the example in the
Schedule D (Form 1040 or 1040-SR)), and instructions for column (g).
can exclude some or all of the gain

Instructions for Form 8949 (2019) -7-

 THEN enter this code
IF . . . AND. . .
in column (f) . . .
You received a Form 1099-B showing Use the Worksheet for Accrued Market Discount
accrued market discount in box 1f 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.
D • 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 sold or exchanged qualified small Report the sale or exchange on Form 8949 as you would if
business stock and can exclude part of the you weren't taking the exclusion and enter the amount of
gain the exclusion as a negative number (in parentheses) in
Q 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 or
1040-SR).
You can exclude all or part of your gain Report the sale or exchange on Form 8949 as you would if
under the rules explained in the Schedule D you weren't taking the exclusion. Then enter the amount of
X
instructions for DC Zone assets or qualified the exclusion as a negative number (in parentheses) in
community assets column (g).
You are electing to postpone all or part of Report the sale or exchange on Form 8949 as you would if
your gain under the rules explained in the you weren't making the election. Then enter the amount of
Schedule D instructions for any rollover of R postponed gain as a negative number (in parentheses) in
gain (for example, rollover of gain from QSB column (g).
stock)
You have a nondeductible loss from a wash Report the sale or exchange on Form 8949 and enter the
sale 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 substitute statement) and the amount of nondeductible
W
wash sale loss shown in box 1g 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
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 have a nondeductible loss other than a Report the sale or exchange on Form 8949 and enter the
loss indicated by code W amount of the nondeductible loss as a positive number in
L
column (g). See Nondeductible Losses in the Instructions
for Schedule D (Form 1040 or 1040-SR).

-8- Instructions for Form 8949 (2019)

 THEN enter this code
IF . . . AND. . .
in column (f) . . .
You received a Form 1099-B or 1099-S (or Enter in column (d) the proceeds shown on the form or
substitute statement) for a transaction and statement you received. Enter in column (e) any cost or
there are selling expenses or option other basis shown on Form 1099-B (or substitute
premiums that aren't reflected on the form statement). In column (g), enter as a negative number (in
or statement by an adjustment to either the parentheses) any selling expenses and option premium
proceeds or basis shown that you paid (and that aren't reflected on the form or
E
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). For more
information about option premiums, see Gain or Loss From
Options in the Instructions for Schedule D (Form 1040 or
1040-SR).
You had a loss from the sale, exchange, or See Small Business (Section 1244) Stock in the
worthlessness of small business (section Schedule D (Form 1040 or 1040-SR) instructions.
1244) stock and the total loss is more than S
the maximum amount that can be treated as
an ordinary loss
You disposed of collectibles (see the Enter -0- in column (g). Report the disposition on Form
C
Schedule D instructions) 8949 as you would report any sale or exchange.
You report multiple transactions on a single See Exception 2 and Special provision for certain
row as described in Exception 2 or Special corporations, partnerships, securities dealers, and other
provision for certain corporations, qualified entities under Exceptions to reporting each
partnerships, securities dealers, and other M transaction on a separate row, earlier. Enter -0- in column
qualified entities under Exceptions to (g) unless an adjustment is required because of another
reporting each transaction on a separate code.
row, earlier
You have an adjustment not explained Enter the appropriate adjustment amount in column (g).
O
earlier in this column See the instructions for column (g).
You are electing to postpone all or part of See How To Report an Election To Defer Tax on Eligible
your gain under the rules explained in the Gain Invested in a QOF, later.
Z
Schedule D instructions for investments in
QOFs
You are reporting your gain from a QOF See How To Report Gain Previously Deferred in a QOF
investment that you deferred in a prior tax Y Investment, later.
year
None of the other statements in this column Leave columns (f) and (g) blank.
apply

Column (h)—Gain or (Loss) $1,000. You had owned the stock for 3 How To Report an Election To
months. Your correct basis for the stock is
Figure gain or (loss) on each row. First,
$100, but you receive a Form 1099-B that
Defer Tax on Eligible Gain
subtract the cost or other basis in column Invested in a QOF
shows your basis is $900 and shows your
(e) from the proceeds (sales price) in
broker reported that basis to the IRS. If you elect to defer tax on an eligible gain
column (d). Then take into account any
Enter $900 on line 1 of the Worksheet for by investing in a QOF, report the eligible
adjustments in column (g). Enter the gain
Basis Adjustments in Column (g), later. gain on the form and in the manner
or (loss) in column (h). Enter negative
Enter $100 on line 2 of the worksheet. otherwise instructed. For example,
amounts in parentheses.
Since line 1 is larger than line 2, leave individual taxpayers would report gain
Example 1—Gain. Column (d) is line 3 blank and enter $800 ($900 − $100) from the sale of stock on Form 8949 and
$6,000 and column (e) is $2,000. Enter as a positive number on line 4. Also enter Schedule D (Form 1040 or 1040-SR). If
$4,000 in column (h). $800 in column (g) of a Part I with box A the gain is reported on Form 8949, do not
Example 2—Loss. Column (d) is checked at the top. Enter “B” in column (f). make any adjustments for the deferral in
$6,000 and column (e) is $8,000. Enter Enter $1,000 in column (d) and $900 in column (g).
($2,000) in column (h). column (e). To figure your gain or (loss), Report the deferral of the eligible gain
subtract $900 from $1,000. Combine the on its own row of Form 8949 in Part I with
Example 3—Adjustment. Column (d) result, $100, with the $800 adjustment in
is $6,000, column (e) is $2,000, and box C checked or Part II with box F
column (g). Your gain is $900 ($100 + checked (depending on whether the gain
column (g) is ($1,000). Enter $3,000 in $800). Enter $900 in column (h).
column (h). being deferred is short term or long term).
If you made multiple investments in
Example 4—Adjustment for different QOFs or in the same QOF on
incorrect basis. You sold stock for different dates, use a separate row for

Instructions for Form 8949 (2019) -9-

each investment. If you invested eligible short-term and long-term gain. You do not the QOF or December 31, 2026,
gains of the same character (but from need to trace or allocate the funds whichever is earlier), the gain you
different transactions) on the same date invested in a QOF to the specific gain recognize will be the same character as
into the same QOF, you can group those being deferred, but the investment in the the gain you deferred.
investments on the same row. In column QOF must have occurred within the
If you are attaching multiple Forms
(a), enter only the EIN of the QOF into 180-day period beginning on the date the
which you invested. In column (b), enter deferred gain was realized. If you realized TIP 8949 to your return, attach the
Form(s) 8949 that lists code "Z" in
the date you invested in the QOF. Leave both short-term and long-term gains
column (f) first.
columns (c), (d), and (e) blank. Enter code during the 180-day period, you can
“Z” in column (f) and the amount of the choose how much of each gain to defer by
If you elect to defer tax on an
deferred gain as a negative number (in reporting the deferral in Part I or Part II, as
TIP eligible gain by investing in a QOF,
parentheses) in column (g). applicable. The character of the eligible
you will also need to complete
gain will survive the investment in the
Your investment in a QOF can be used Form 8997. See the instructions for Form
QOF. When you recognize the eligible
to defer only long-term gain, only 8997 for more information.
gain (either when you sell or exchange or
short-term gain, or a combination of both otherwise dispose of your investment in

-10- Instructions for Form 8949 (2019)

Worksheet for Basis Adjustments in Column (g) Keep for Your Records
If the basis shown on Form 1099-B (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 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 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 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
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 Form 1099-B, box 1d (or substitute statement) .................................... 1.
2. Enter the basis from Form 1099-B, box 1e (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 Form 1099-B, box 1f (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.

Worksheet for Contingent Payment Debt Instrument Adjustment in Column

(g) Keep for Your Records
If you received a Form 1099-B (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 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).

1. Enter the proceeds from Form 1099-B, box 1d (or substitute statement) .................................... 1.
2. Enter the basis from Form 1099-B, box 1e (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 Gain Previously term. The gain you recognize will be the If you disposed of your investment
same character as the gain you deferred. TIP in a QOF, you will also need to
Deferred in a QOF Investment Put the EIN of the QOF investment you are complete Form 8997. See the
If you sold or exchanged your investment selling in column (a). Complete columns instructions for Form 8997 for more
in a QOF during the tax year, you must (b), (c), (d), and (e). Enter code "Y" in information.
report the amount of eligible gain that you column (f), and in column (g) enter the
previously deferred and that you are now amount of previously deferred gain as a
recognizing. Report the gain from each positive number. Line 2
investment on its own row. Check box C in The total of the amounts in column (h) of
Part I or check box F in Part II depending line 2 of all your Forms 8949 should equal
on whether the gain is short term or long the amount you get by combining columns

Instructions for Form 8949 (2019) -11-

(d), (e), and (g) on the corresponding line with box A checked should equal the of all your Forms 8949 with box E checked
of Schedule D (Form 1040 or 1040-SR). amount you get by combining columns (d), should equal the amount you get by
For example, the total of the amounts in (e), and (g) on line 1b of Schedule D. The combining columns (d), (e), and (g) on
column (h) of line 2 of all your Forms 8949 total of the amounts in column (h) of line 2 line 9 of Schedule D.

-12- Instructions for Form 8949 (2019)