IRS Form 8949 Sales and Other Dispositions of Capital Assets

What Is IRS Form 8949?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury. As of today, no separate filing guidelines for the form are provided by the IRS.

FAQ

Q: What is IRS Form 8949?
A: IRS Form 8949 is used to report sales and other dispositions of capital assets for tax purposes.

Q: What are capital assets?
A: Capital assets are usually long-term investments or property that have the potential to increase in value, such as stocks, bonds, real estate, and certain collectibles.

Q: When do I need to use IRS Form 8949?
A: You need to use IRS Form 8949 if you sold or disposed of capital assets during the tax year.

Q: What information do I need to complete Form 8949?
A: You will need to provide details about the asset you sold, including the date of acquisition, date of sale, cost basis, and sale proceeds.

Q: Do I need to attach Form 8949 to my tax return?
A: Yes, you need to attach Form 8949 to your tax return, along with Schedule D, if you have any capital gains or losses to report.

Q: Are there any exceptions to using Form 8949?
A: Yes, if you only have short-term capital gains and losses from the sale of stocks, you can report them directly on Schedule D without using Form 8949.

Q: Is there a deadline to file Form 8949?
A: Form 8949 must be filed along with your tax return by the April tax filing deadline, unless you file for an extension.

Q: What happens if I make a mistake on Form 8949?
A: If you make a mistake on Form 8949, you may need to file an amended tax return using Form 1040X to correct the error.

Q: Can I e-file Form 8949?
A: Yes, you can e-file Form 8949 along with your tax return using tax software or a qualified tax preparer.