U.S. Individual Income Tax Return Forms

2022

Instructions for Form 8949

Department of the Treasury
Internal Revenue Service

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
Estates and trusts. Both grantor and
non-grantor trusts must use Form 8949.
Foreign corporate partners. Foreign
corporate partners should use this form to
report any recognized effectively
connected capital gain (or loss) in Part II
with box F checked. Enter “From
Schedule P (Form 1120-F)” in column (a),
and enter the gain (or loss) in column (h)
with all other columns filled in. See the
Instructions for Schedule P (Form
1120-F).

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, and 1120-SF; and certain
Forms 990-T.
Complete Form 8949 before you complete
line 1b, 2, 3, 8b, 9, or 10 of Schedule D.

Purpose of Form

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 Forms 1099-B or 1099-S (or
substitute statements) with the amounts
you report on your return. If you receive
Forms 1099-B or 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 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.
Jan 3, 2023

If all Forms 1099-B (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.
If you received a Schedule A to Form
8971 for property and Part 2, column C, of
the Schedule A 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 2, column E, of
the schedule. See Schedule A to 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.
Individuals. Individuals use Form 8949
to report the following.
• 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.
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.
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.
• 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.
Cat. No. 59421Z

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.
Estates and trusts. Estates and trusts
(including non-grantor trusts) use Form
8949 to report the following.
• 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.
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 7 (or effectively connected
capital gain distributions not reported
directly on Form 1040-NR, line 7).
• 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 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.
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 substitute statement), your
broker may have reported your basis for
these securities in box 1e.

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. Certain partnership interests
held 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. Certain partnership interests held 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. If you received a Form
1099-B (or substitute statement) for a
transaction, box 2 may help you determine
whether your gain (or loss) is short term or
long term or subject to special rules. If
box 2 is blank and code X is in the
"Applicable checkbox on Form 8949" box
near the top of Form 1099-B, 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
-2-

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 checked) and a net long-term
capital gain (or loss) on Part II (with box F
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.
If more than one Schedule K-1 is
received, report each on a separate row.
Include additional identifying information,
such as “Partnership X.”

Section 1061 Reporting

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.

Digital Assets

A digital asset is a digital representation of
value, other than a representation of the
U.S. dollar or a foreign currency, that is
recorded on a cryptographically secured
distributed ledger or any similar
technology. 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,” and
“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, Rev. Rul.
2019-24, and IRS.gov/
VirtualCurrencyFAQs. 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.
Instructions for Form 8949 (2022)

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, 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
or 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 partial disposition of
a MACRS asset, see Disposition of
Depreciable Property Not Used in Trade
or Business in the Form 4797 instructions.
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, or C) at the
top of Part I. Include on each Part I only
transactions described in the text for the
box you check (A, B, or C). Check only
one box on each Part I. For example, if
you check box A in one Part I, 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,
or C).
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 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 may also tell
you which box to check.
Box A. Report on a Part I with box A
checked all short-term transactions
reported to you on Form 1099-B (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 3 of Form 1099-B isn't checked), see
Box B below.
Instructions for Form 8949 (2022)

If you don't need to make any

TIP adjustments to the basis or type of

If you don't need to make any

TIP adjustments to the basis or type of

gain (or loss) reported to you on
Form 1099-B (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 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.

gain (or loss) reported to you on
Form 1099-B (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 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. Report on a Part I with box B
checked all short-term transactions
reported to you on Form 1099-B (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 3
of Form 1099-B is checked), see Box A
above.

Box E. Report on a Part II with box E
checked all long-term transactions
reported to you on Form 1099-B (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 3
of Form 1099-B is checked), see Box D
above.

Box C. Report on a Part I with box C
checked all short-term transactions for
which you can't check box A or B because
you didn't receive a Form 1099-B (or
substitute statement).

Box F. Report on a Part II with box F
checked all long-term transactions for
which you can't check box D or E because
you didn't receive a Form 1099-B (or
substitute statement).
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.

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, or F) at
the top of Part II. Include on each Part II
only transactions described in the text for
the box you check (D, E, or F). Check only
one box on each Part II. For example, if
you check box D in one Part II, 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,
or F).
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 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 may also tell
you which box to check.
Box D. Report on a Part II with box D
checked all long-term transactions
reported to you on Form 1099-B (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 3 of Form 1099-B isn't checked), see
Box E below.
-3-

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
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 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
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
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.
Exception 2 is not available for the
election to defer eligible gain by
CAUTION 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 1065, or
are a taxpayer exempt from receiving
Form 1099-B, such as a 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 at the top of
Part I even if the summary totals include
transactions described in the text for box
A or B. For long-term transactions, check
box F at the top of Part II even if the
summary totals include transactions
described in the text for box D or E. 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 checked)
or Part II (with box F checked).
This special provision is not
available for the election to defer
CAUTION 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.

!

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 either (a) include Form 8949 as a
PDF attachment to your return, or (b)
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.

receive a Form 1099-R showing an
amount in box 3, report the box 3 amount
on a Part II with box F 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 a
Part I with box C 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 a Part II with box F 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
a Part II with box F 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 1120-F). Foreign
partner interest in a partnership reports
recognized effectively connected capital
gain (or loss) on a Part II with box F
checked. Enter “From Schedule P (Form
1120-F)” in column (a), 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
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 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).

Charitable gift annuity. If you are the
beneficiary of a charitable gift annuity and
-4-

Instructions for Form 8949 (2022)

See Pub. 550 or Pub. 1212 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
a Part I with box C 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
a Part I with box C checked or Part II with
box F 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 a Part I with box C checked
or Part II with box F 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

Instructions for Form 8949 (2022)

of the property as shown on Form 1099-B
or 1099-S (or substitute statement).
For a digital asset, include the full name
or an abbreviated symbol of the digital
asset and the exact amount of units sold
or disposed of in the transaction, and
include the sale transaction ID number, if
available.
If you inherited the property from
someone who died in 2010 and the
executor of the estate made the election to
file Form 8939, also enter “INH-2010” in
column (a).

Column (b)—Date Acquired

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.
If you received a Form 1099-B (or
substitute statement), box 1b 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 a Part II with the appropriate box
checked (D, E, or F). Enter “INHERITED”
in column (b).
Stock acquired on various dates. If you
sold a block of stock (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
substitute statement), box 1c may help
you determine when you sold or disposed
of the property.

Column (d)—Proceeds (Sales
Price)

didn't receive a Form 1099-B or 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 or 1099-S
(or substitute statement). If you
received a Form 1099-B or 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 or
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 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 substitute statement)
in both columns (d) and (e).

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.

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

If you sold property that you inherited
from someone who died in 2010 and the
executor made the election to file Form
8939, see Pub. 4895.

You didn't receive a Form 1099-B or
1099-S (or substitute statement). If you

If you elected to recognize gain on
property held on January 1, 2001, your

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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 to Form 8971—Consistent
basis reporting. If you received a
Schedule A to 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 2, column C, of the
Schedule A 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 2,
column E, of the Schedule A. 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.
If you received a supplemental

TIP Schedule A to Form 8971, use the

most recently dated supplemental
Schedule A 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 2,
column E, of the Schedule A to figure your
basis in the property and Part 2, column C,
of the Schedule A 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. 551; Pub.
550; 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
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 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 substitute statement)
and the basis shown in box 1e 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 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.
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 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 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 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 the sale of the stock of a specified
10%-owned foreign corporation, if a
corporate shareholder received an actual
or constructive dividend after December
31, 2017, and that dividend qualified for
the 100% dividends-received deduction,
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the shareholder must reduce its basis in
the controlled foreign corporation stock in
the amount of the dividend received, 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);
• 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
substitute statement) that shows an
incorrect basis, enter “B” in column (f),
enter the basis shown on Form 1099-B (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).
Form 1099-B. If the property you sold
was a covered security, its basis should
be shown in box 1e of the Form 1099-B
(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

Instructions for Form 8949 (2022)

U.S. dollar and granted or acquired after
2015.
• Options issued as part of investment
units and granted or acquired after 2015.
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 substitute
statement) in column (e). If the basis
shown on Form 1099-B (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 of Form 1099-B (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
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,

Instructions for Form 8949 (2022)

Columns (f) and (g), later, for further
information about how to report the correct
basis.

column (g). For example, if one
adjustment is $5,000 and another is
($1,000), enter $4,000 ($5,000 − $1,000).

Column (f)—Code

Example. You sold your main home in
2022 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 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).

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 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

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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.

IF . . .

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

AND. . .

B

• If this transaction is reported on a Part I with box B
checked at the top or if this transaction is reported on a
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
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
statement) and the basis shown in box 1e is
incorrect

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.

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

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).

T

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).

You received a Form 1099-B or 1099-S (or
substitute statement) as a nominee for the
actual owner of the property
N

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

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).

H

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Instructions for Form 8949 (2022)

IF . . .

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

AND. . .

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.

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).

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 received a Form 1099-B (or substitute
statement) showing accrued market
discount in box 1f

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

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
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)

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).

R

You have a nondeductible loss from a wash
sale

You have a nondeductible loss other than a
loss indicated by code W

Instructions for Form 8949 (2022)

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 substitute statement) and the amount of nondeductible
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).

L

Report the sale or exchange on Form 8949 and enter the
amount of the nondeductible loss as a positive number in
column (g). See Nondeductible Losses in the Instructions
for Schedule D (Form 1040).

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IF . . .
You received a Form 1099-B or 1099-S (or
substitute statement) for a transaction and
there are selling expenses or option
premiums 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) . . .

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 or 1099-S (or substitute
statement). In column (g), enter as a negative number (in
parentheses) any selling expenses and option premium
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). For more
information about option premiums, see Gain or Loss From
Options in the Instructions for Schedule D (Form 1040).

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

S

You disposed of collectibles (see the
Schedule D instructions)

C

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

M

You have an adjustment not explained
earlier in this column

O

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

Z

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

Y

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

Enter -0- in column (g). Report the disposition on Form
8949 as you would report any sale or exchange.
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.
Enter the appropriate adjustment amount in column (g).
See the instructions for column (g).
See How To Report an Election To Defer Tax on Eligible
Gain Invested in a QOF, later.

See How To Report Gain Previously Deferred in a QOF
Investment, later.

None of the other statements in this column Leave columns (f) and (g) blank.
apply

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 3—Adjustment. Column (d)
is $6,000, column (e) is $2,000, and
column (g) is ($1,000). Enter $3,000 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 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 (g) of a Part I with box A
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).
Example 5—Digital asset. You
purchased one unit of digital asset A on
June 1, 2019, for $1,000. On June 1,
2022, you use a platform for trading digital
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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).

Instructions for Form 8949 (2022)

Keep for Your Records

Worksheet for Basis Adjustments in Column (g)

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 box 1d of Form 1099-B (or substitute statement)

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

1.

2.

Enter the basis from box 1e of Form 1099-B (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 of Form 1099-B (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 box 1d of Form 1099‐B (or substitute statement)

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

1.

2.

Enter the basis from box 1e of Form 1099‐B (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)
For more information on QOFs,

TIP see Pub. 544.

If you elect to defer tax on an eligible
gain by investing in a QOF, report the
Instructions for Form 8949 (2022)

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 checked or Part II with box F
checked (depending on whether the gain
-11-

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.
If you are attaching multiple Forms
TIP 8949 to your return, attach the
Form(s) 8949 that lists code "Z" in
column (f) first.
If you elect to defer tax on an

TIP 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. See the instructions for
Form 8997 for more information.

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 I (short-term
transactions) or Part II (long-term
transactions), as applicable, of Form
8949.

• For the first row, in column (a), write
“QOF INVESTMENT FROM FORM 4797.”
Leave columns (b) through (g) blank. In
column (h), 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 (h) 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 I or Part
II, as applicable.

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

-12-

"Y" in column (f), and enter the amount of
previously deferred gain as a positive
number in column (g).

How To Report Gain Previously
Deferred in a QOF Investment

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 in
Part I or check box F 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).
If you disposed of your investment

TIP in a QOF, you will also need to

complete Form 8997. See the
instructions for Form 8997 for more
information.

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
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 checked should
equal the amount you get by combining
columns (d), (e), and (g) on line 9 of
Schedule D.

Instructions for Form 8949 (2022)