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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8949

Sales and Other Dispositions of Capital Assets

Section references are to the Internal Revenue Code unless • The sale or exchange of a capital asset not reported on
otherwise noted. another form or schedule.
• Gains from involuntary conversions (other than from casualty
Future Developments or theft) of capital assets not used in your trade or business.
For the latest information about developments related to Form • Nonbusiness bad debts.
8949 and its instructions, such as legislation enacted after they • Worthlessness of a security.
were published, go to IRS.gov/Form8949. • The election to defer capital gain invested in a qualified
opportunity fund (QOF).
What’s New • The disposition of interests in QOFs.
If you are filing a joint return, complete as many copies of
New code P. Use code “P” to report gain or loss on the sale or
Form 8949 as you need to report all of your and your spouse's
exchange by a nonresident alien individual, foreign trust, foreign
transactions. You and your spouse may list your transactions on
estate, or foreign corporation of an interest in a partnership that
separate forms or you may combine them. However, you must
is engaged in a U. S. trade or business. Code P will apply to Part
include on your Schedule D the totals from all Forms 8949 for
I and Part II, as applicable, of Form 8949.
both you and your spouse.
Corporations and partnerships. Corporations and
General Instructions partnerships use Form 8949 to report the following.
• The sale or exchange of a capital asset not reported on
File Form 8949 with the Schedule D for the return you are filing. another form or schedule.
This includes Schedule D of Forms 1040, 1040-SR, 1041, 1065, • Gain or loss on the sale or exchange by a foreign corporation
8865, 1120, 1120-S, 1120-C, 1120-F, 1120-FSC, 1120-H, of an interest in a partnership that is engaged in a U.S. trade or
1120-IC-DISC, 1120-L, 1120-ND, 1120-PC, 1120-POL, business.
1120-REIT, 1120-RIC, and 1120-SF; and certain Forms 990-T. • Sale of stock of a specified 10%-owned foreign corporation,
Complete Form 8949 before you complete line 1b, 2, 3, 8b, 9, or adjusted for the dividends-received deduction under section
10 of Schedule D. 245A, but only if the sale would otherwise generate a loss.
• Nonbusiness bad debts.
Purpose of Form • Undistributed long-term capital gains from Form 2439.
Use Form 8949 to report sales and exchanges of capital assets. • Worthlessness of a security.
Form 8949 allows you and the IRS to reconcile amounts that • The election to defer capital gain invested in a QOF.
were reported to you and the IRS on Forms 1099-B or 1099-S • The disposition of interests in QOFs.
(or substitute statements) with the amounts you report on your Corporations also use Form 8949 to report their share of gain
return. If you receive Forms 1099-B or 1099-S (or substitute (or loss) from a partnership, estate, or trust.
statements), always report the proceeds (sales price) shown on For corporations and partnerships meeting certain criteria, an
the form (or statement) in column (d) of Form 8949. If Form exception to some of the normal requirements for completing
1099-B (or substitute statement) shows that the cost or other Form 8949 has been provided. See Special provision for certain
basis was reported to the IRS, always report the basis shown on corporations, partnerships, securities dealers, and other
that form (or statement) in column (e). If any correction or qualified entities under the instructions for line 1, later.
adjustment to these amounts is needed, make it in column (g).
See How To Complete Form 8949, Columns (f) and (g), later, for Estates and trusts. Estates and trusts (including non-grantor
details about these adjustments. trusts) use Form 8949 to report the following.
• Gain or loss on the sale or exchange by a foreign trust or
If all Forms 1099-B (or all substitute statements) you received estate of an interest in a partnership that is engaged in a U.S.
show basis was reported to the IRS and no correction or trade or business.
adjustment is needed, you may not need to file Form 8949. See • The sale or exchange of a capital asset not reported on
Exception 1 under the instructions for line 1, later. another form or schedule.
• Nonbusiness bad debts.
If you received a Schedule A to Form 8971 for property and • Worthlessness of a security.
Part 2, column C, of the Schedule A indicates that the property • The election to defer capital gain invested in a QOF.
increased the estate tax liability, you will be required to report a • The disposition of interests in QOFs.
basis consistent with the final estate tax value of the property
reported in Part 2, column E, of the schedule. See Schedule A to Schedule D. Use Schedule D for the following purposes.
Form 8971—Consistent basis reporting under Column (e)—Cost • To figure the overall gain (or loss) from transactions reported
or Other Basis, later, for more information on consistent basis on Form 8949.
reporting and the amount you will report 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.
Individuals. Individuals use Form 8949 to report the following. • To report capital gain distributions not reported directly on
• The sale or exchange of a capital asset reported on a Form Form 1040 or 1040-SR, line 7 (or effectively connected capital
1099-K. gain distributions not reported directly on Form 1040-NR, line 7).
• Gain or loss on the sale or exchange by a nonresident alien • To report a capital loss carryover from the previous tax year to
individual of an interest in a partnership that is engaged in a U.S. the current tax year.
trade or business.

Jan 11, 2024 Cat. No. 59421Z

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• To report your share of a gain (or loss) from a partnership, S Short-Term or Long-Term
corporation, estate, or trust. (However, corporations report this Separate your capital gains and losses according to how long
type of gain (or loss) on Form 8949.) you held or owned the property.
• 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 The holding period for short-term capital gains and losses is
substitute statement) showing basis was reported to the IRS and generally 1 year or less. Taxpayers that hold certain partnership
for which you have no adjustments, as explained under interests in connection with the performance of services may be
Exception 1, later. subject to different holding period rules. See the Schedule D
Individuals, estates, and trusts also use Schedule D to report instructions for more information. Report these transactions on
undistributed long-term capital gains from Form 2439. Part I of Form 8949 (or line 1a of Schedule D if you can use
Exception 1 under the instructions for line 1, later).
Additional information. See the instructions for the
Schedule D you are filing for detailed information about other The holding period for long-term captal gains and losses is
topics, including the following. generally more than 1 year. Taxpayers that hold certain
• Other forms you may have to file. partnership interests in connection with the performance of
• The definition of capital asset. services may be subject to different holding period rules. See the
• Certain digital assets, such as Bitcoin. Also, see the Schedule D instructions for more information. Report these
Instructions for Form 1040 and IRS.gov/VirtualCurrencyFAQs. transactions on Part II of Form 8949 (or line 8a of Schedule D if
• Reporting capital gain distributions, undistributed capital you can use Exception 1 under the instructions for line 1, later).
gains, the sale of a main home, the sale of capital assets held for To figure the holding period, begin counting on the day after
personal use, or the sale of a partnership interest. you received the property and include the day you disposed of it.
• Capital losses, nondeductible losses, and losses from wash
sales. Generally, if you disposed of property that you acquired by
• Traders in securities. inheritance, report the disposition as a long-term gain (or loss)
• Short sales. regardless of how long you held the property.
• Gain or loss from options. A nonbusiness bad debt must be treated as a short-term
• Installment sales. capital loss. See Pub. 550 for what qualifies as a nonbusiness
• Demutualization of life insurance companies. bad debt and how to enter it on Part I of Form 8949.
• Exclusion or rollover of gain from the sale of qualified small
business (QSB) stock. Form 1099-B. If you received a Form 1099-B (or substitute
• Any other rollover of gain. statement) for a transaction, box 2 may help you determine
• Exclusion of gain from the sale or exchange of DC Zone whether your gain (or loss) is short term, long term, or subject to
assets or qualified community assets. special rules. If box 2 is blank and code X is in the "Applicable
• Deferral of gain invested in a QOF. checkbox on Form 8949" box near the top of Form 1099-B, your
• Certain other items that get special treatment. broker doesn't know whether your gain (or loss) is short term or
• Special reporting rules for corporations, partnerships, estates, long term. Use your own records to determine whether your gain
and trusts in certain situations. (or loss) is short term or long term.

For more information about reporting on Forms 6252, 4797, Corporation's Gains and Losses From
4684, 6781, and 8824, see the instructions for those forms. See
Pub. 544 and Pub. 550 for more details. Partnerships, Estates, or Trusts
Report a corporation's share of capital gains and losses from
Basis and Recordkeeping investments in partnerships, estates, or trusts on the appropriate
Basis is the amount of your investment in property for tax part of Form 8949. Report a net short-term capital gain (or loss)
purposes. The basis of property you buy is usually its cost. You on Part I (with box C checked) and a net long-term capital gain
need to know your basis to figure any gain (or loss) on the sale (or loss) on Part II (with box F checked). In column (a), enter
or other disposition of the property. You must keep accurate “From Schedule K-1 (Form 1065)” or “From Schedule K-1 (Form
records that show the basis and, if applicable, adjusted basis of 1041),” whichever applies; enter the gain (or loss) in column (h);
your property. Your records should show the purchase price, and leave all other columns blank.
including commissions; increases to basis, such as the cost of If more than one Schedule K-1 is received, report each on a
improvements; and decreases to basis, such as depreciation, separate row. Include additional identifying information, such as
nondividend distributions on stock, and stock splits. “Partnership X.”
For more information on basis, see Column (e)—Cost or
Other Basis, later, and the following publications. Section 1061 Reporting
• Pub. 550, Investment Income and Expenses. Section 1061 recharacterizes certain long-term capital gains of a
• Pub. 551, Basis of Assets. partner that holds one or more applicable partnership interests
as short-term capital gains. An applicable partnership interest is
If you lost or didn't keep records to determine your basis in an interest in a partnership that is transferred to or held by a
securities, contact your broker for help. If you receive a Form taxpayer, directly or indirectly, in connection with the
1099-B (or substitute statement), your broker may have reported performance of substantial services by the taxpayer or any other
your basis for these securities in box 1e. related person, in an applicable trade or business. See Section
The IRS partners with companies that offer Form 8949 1061 Reporting Guidance FAQs for reporting of section 1061
software that can import trades from many brokerage recharacterization amounts on the Form 8949.
firms and accounting software that can help you keep
track of your adjusted basis in securities. To find out more, go to Digital Assets
IRS.gov/Efile. A digital asset is a digital representation of value 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

2 Instructions for Form 8949 (2023)

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holding period for short-term and long-term capital gains and If you are attaching multiple Forms 8949 to your return, attach
losses explained earlier under Short-Term or Long-Term. Digital the Form(s) 8949 that lists code "Z" in column (f) first.
assets include property that has been referred to as “convertible If you received a Form 1099-B for a transaction, the
virtual currency,” “cryptocurrency,” and “non-fungible tokens.” If a “Applicable checkbox on Form 8949” box near the top of that
particular asset has the characteristics of a digital asset, it will be form may help you determine which box to check on the Part I
treated as a digital asset for federal income tax purposes. For where you report that transaction. A substitute statement you get
more information on the tax treatment of digital assets, see instead of Form 1099-B may also tell you which box to check.
Notice 2014-21 (as modified by Notice 2023-34), Rev. Rul. Box A. Report on a Part I with box A checked all short-term
2019-24, Rev. Rul. 2023-14, and IRS.gov/VirtualCurrencyFAQs. transactions reported to you on Form 1099-B (or substitute
For more information on the tax treatment of property statement) with an amount shown for cost or other basis unless
transactions and on short-term and long-term capital gains and the statement indicates that amount wasn't reported to the IRS. If
losses, see Pub. 544. your statement shows cost or other basis but indicates it wasn't
reported to the IRS (for example, if box 12 of Form 1099-B isn't
Rounding Off to Whole Dollars checked), see Box B below.
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 If you don't need to make any adjustments to the basis
amounts under 50 cents and increase cent amounts over 49 TIP or type of gain (or loss) reported to you on Form 1099-B
cents to the next dollar. For example, $1.49 becomes $1 and (or substitute statement) or to your gain (or loss) for any
$1.50 becomes $2. 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
Specific Instructions can report summary information for those transactions directly
on Schedule D. For more information, see Exception 1, later.
Report short-term gains and losses on Part I. Report long-term
gains and losses on Part II. Box B. Report on a Part I with box B checked all short-term
transactions reported to you on Form 1099-B (or substitute
Line 1 statement) without an amount shown for cost or other basis or
showing that cost or other basis wasn't reported to the IRS. If
Enter all sales and exchanges of capital assets, including stocks, your statement shows cost or other basis for the transaction was
bonds, and real estate (if not reported on line 1a or 8a of reported to the IRS (for example, if box 12 of Form 1099-B is
Schedule D or on Form 4684, 4797, 6252, 6781, or 8824). checked), see Box A above.
Include these transactions even if you didn't receive a Form
1099-B or 1099-S (or substitute statement) for the transaction. Box C. Report on a Part I with box C checked all short-term
However, if the property you sold was your main home, see Sale transactions for which you can't check box A or B because you
of Your Home in the Instructions for Schedule D (Form 1040). didn't receive a Form 1099-B (or substitute statement).
Part II. Use a separate Part II for each type of long-term
Enter all losses from the disposition of a portion of a MACRS transaction described in the text for one of the boxes (D, E, or F)
asset not used in a trade or business but held for investment or at the top of Part II. Include on each Part II only transactions
for use in a not-for-profit activity. If you have a gain from the described in the text for the box you check (D, E, or F). Check
partial disposition of a MACRS asset, see Disposition of only one box on each Part II. For example, if you check box D,
Depreciable Property Not Used in Trade or Business in the Form include on that Part II only long-term transactions reported to you
4797 instructions. on a statement showing basis was reported to the IRS. Complete
If you received a Form 1099-K reporting proceeds from the as many copies of Part II as you need to report all transactions of
sale of personal property that resulted in gain, that transaction is each type (D, E, or F).
taxable and must be entered on Form 8949. Loss on the sale of If you are attaching multiple Forms 8949 to your return, attach
personal property is not deductible, and generally should not be the Form(s) 8949 that lists code "Z" for investments in a QOF in
reported on Form 8949. However, if you receive a Form 1099-K column (f) first.
reporting proceeds from the sale of personal property that
resulted in a loss, you should report the loss with an offsetting If you received a Form 1099-B for a transaction, the
entry. You can do this either on Form 1040, Schedule 1, Part 1, “Applicable checkbox on Form 8949” box near the top of that
or on Form 8949, by entering an adjustment when reporting the form may help you determine which box to check on the Part II
proceeds and basis of the property, as follows. Enter “L” in where you report that transaction. A substitute statement you get
column (f) as the code explaining the loss is nondeductible. instead of Form 1099-B may also tell you which box to check.
Then enter the amount of the nondeductible loss as a positive Box D. Report on a Part II with box D checked all long-term
number in column (g). Enter the proceeds in column (d), enter transactions reported to you on Form 1099-B (or substitute
the cost basis in column (e), enter “L” in column (f), and enter in statement) with an amount shown for cost or other basis unless
column (g) the amount of the adjustment that will result in $0 as the statement indicates that amount wasn't reported to the IRS. If
the gain or loss in column (h). your statement shows cost or other basis but indicates it wasn't
reported to the IRS (for example, if box 12 of Form 1099-B isn't
Enter the details of each transaction on a separate row checked), see Box E below.
(unless one of the Exceptions to reporting each transaction on a
separate row, described later, applies to you). If you don't need to make any adjustments to the basis
TIP or type of gain (or loss) reported to you on Form 1099-B
Part I. Use a separate Part I for each type of short-term (or substitute statement) or to your gain (or loss) for any
transaction described in the text for one of the boxes (A, B, or C) transactions for which basis has been reported to the IRS
at the top of Part I. Include on each Part I only transactions (normally reported on Form 8949 with box D checked), you don't
described in the text for the box you check (A, B, or C). Check have to include those transactions on Form 8949. Instead, you
only one box on each Part I. For example, if you check box A, can report summary information for those transactions directly
include on that Part I only short-term transactions reported to you on Schedule D. For more information, see Exception 1, later.
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 Box E. Report on a Part II with box E checked all long-term
each type (A, B, or C). transactions reported to you on Form 1099-B (or substitute

Instructions for Form 8949 (2023) 3

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statement) without an amount shown for cost or other basis or Don't enter “Available upon request” and summary totals in
showing that cost or other basis wasn't reported to the IRS. If lieu of reporting the details of each transaction on Part I or II or
your statement shows cost or other basis for the transaction was attached statements.
reported to the IRS (for example, if box 12 of Form 1099-B is
Exception 2 is not available for the election to defer
checked), see Box D above.
eligible gain by investing in a QOF. Taxpayers who elect
Box F. Report on a Part II with box F checked all long-term CAUTION! to defer eligible gain must report the details of each
transactions for which you can't check box D or E because you investment in a QOF on Form 8949 in the manner described
didn't receive a Form 1099-B (or substitute statement). under How To Report an Election To Defer Tax on Eligible Gain
You don't need to complete and file an entire copy of Form Invested in a QOF, later.
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 Special provision for certain corporations, partnerships,
and check the box that describes the transactions. Otherwise, securities dealers, and other qualified entities. This special
complete a separate Part I or II for each category of your provision applies to certain corporations, partnerships, securities
transactions, as described above. dealers, and nonprofit organizations. Individual taxpayers aren't
eligible except in rare circumstances.
Include on your Schedule D the totals from all your Parts I and
II. Form 8949 and Schedule D explain how to do this. You may enter summary totals instead of reporting the details
of each transaction on a separate row of Part I or II or on
Exceptions to reporting each transaction on a separate attached statements if:
row. There are exceptions to the rule that you must report each 1. You file Form 1120-S or 1065, or are a taxpayer exempt
of your transactions on a separate row of Part I or II. Any from receiving Form 1099-B, such as a corporation or exempt
taxpayer who qualifies can use Exception 1 or Exception 2 organization, under Regulations section 1.6045-1(c)(3)(i)(B);
below. Taxpayers who file Form 1120-S or Form 1065 and other and
qualified entities should see Special provision for certain
corporations, partnerships, securities dealers, and other 2. You must report more than five transactions for that part.
qualified entities, later. If this provision applies to you, enter the summary totals on
Exception 1. Form 8949 isn't required for certain line 1. For short-term transactions, check box C at the top of Part
transactions. You may be able to aggregate those transactions I even if the summary totals include transactions described in the
and report them directly on either line 1a (for short-term text for box A or B. For long-term transactions, check box F at the
transactions) or line 8a (for long-term transactions) of top of Part II even if the summary totals include transactions
Schedule D. This option applies only to transactions (other than described in the text for box D or E. Enter “Available upon
sales of collectibles) for which: request” in column (a). Leave columns (b) and (c) blank. Enter
• You received a Form 1099-B (or substitute statement) that “M” in column (f). If other codes also apply, enter all of them in
shows basis was reported to the IRS and doesn't show any column (f). Enter the totals that apply in columns (d), (e), (g), and
adjustments in box 1f or 1g; (h).
• The Ordinary box in box 2 isn’t checked;
• You don't need to make any adjustments to the basis or type Don't use a separate row for the totals from each broker.
of gain (or loss) reported on Form 1099-B (or substitute Instead, enter the summary totals from all brokers on a single
statement), or to your gain (or loss); and row of Part I (with box C checked) or Part II (with box F checked).
• You aren’t electing to defer income due to an investment in a This special provision is not available for the election to
QOF and aren’t terminating deferral from an investment in a ! defer eligible gain by investing in a QOF. Taxpayers who
QOF. CAUTION elect to defer eligible gain must report the details of each
If you choose to report these transactions directly on investment in a QOF on Form 8949 in the manner described
Schedule D, you don't need to include them on Form 8949 and under How To Report an Election To Defer Tax on Eligible Gain
don't need to attach a statement. For more information, see the Invested in a QOF, later.
Schedule D instructions.
E-file. If you e-file your return but choose not to report each
If you qualify to use Exception 1 and also qualify to use transaction on a separate row on the electronic return, you must
Exception 2, you can use both. Report the transactions that attach Form 8949 to Form 8453 (or the appropriate form in the
qualify for Exception 1 directly on either line 1a or 8a of Form 8453 series) and mail the forms to the IRS. (However, you
Schedule D, whichever applies. Report the rest of your can't attach a paper Form 8949 to Form 8453-FE.) You can
transactions as explained in Exception 2. attach one or more statements containing all the same
Exception 2. Instead of reporting each of your transactions information as Form 8949, instead of attaching Form 8949, if the
on a separate row of Part I or II, you can report them on an statements are in a format similar to Form 8949.
attached statement containing all the same information as Parts I
and II and in a similar format (that is, description of property, However, this doesn't apply to transactions that qualify for
dates of acquisition and disposition, proceeds, basis, adjustment Exception 1 or the Special provision for certain corporations,
and code(s), and gain (or loss)). Use as many attached partnerships, securities dealers, and other qualified entities,
statements as you need. Enter the combined totals from all your earlier. In those cases, an attachment, a statement, or Form
attached statements on Parts I and II with the appropriate box 8453 isn’t required.
checked. Charitable gift annuity. If you are the beneficiary of a
For example, report on Part I with box B checked all charitable gift annuity and receive a Form 1099-R showing an
short-term gains and losses from transactions your broker amount in box 3, report the box 3 amount on a Part II with box F
reported to you on a statement showing basis wasn't reported to checked. Enter “Form 1099-R” in column (a). Enter the box 3
the IRS. Enter the name of the broker followed by the words “see amount in column (d). Also, complete column (h).
attached statement” in column (a). Leave columns (b) and (c) Form 2438. Enter any net short-term capital gain from line 4 of
blank. Enter “M” in column (f). If other codes also apply, enter all Form 2438 on a Part I with box C checked. Enter “Net short-term
of them in column (f). Enter the totals that apply in columns (d), capital gain from Form 2438, line 4” in column (a), enter the gain
(e), (g), and (h). If you have statements from more than one in column (h), and leave all other columns blank.
broker, report the totals from each broker on a separate row.

4 Instructions for Form 8949 (2023)

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Enter any amount from line 12 of Form 2438 on a Part II with              how long you held the stock). Enter the taxable part of the 
box F checked. Enter “Undistributed capital gains not designated          distribution in columns (d) and (h). Each payer of a nondividend 
(from Form 2438)” in column (a), enter the amount of the gain in          distribution should send you a Form 1099-DIV showing the 
column (h), and leave all other columns blank.                            amount of the distribution in box 3.
Form 2439. Corporations and partnerships report undistributed             Dispositions of depreciable property not used in a trade or 
long-term capital gains from Form 2439 on a Part II with box F            business.    Report on Form 8949 a loss from the sale or 
checked. Enter “From Form 2439” in column (a), enter the gain in          exchange of depreciable property not used in a trade or 
column (h), and leave all other columns blank. Individuals report         business but held for investment or for use in a not-for-profit 
undistributed long-term capital gains from Form 2439 on line 11           activity. If you have a gain from the sale of such property, see 
of Schedule D (Form 1040). Estates and trusts report those                Disposition of Depreciable Property Not Used in Trade or 
amounts on line 11 of Schedule D (Form 1041).                             Business in the Form 4797 instructions.
Schedule P (Form 1040-NR). A nonresident alien individual,                Other gains (or losses) where sales price or basis isn't 
foreign trust, or foreign estate that sells or exchanges an interest      known.   If you have another gain (or loss) for which you don't 
in a partnership engaged in a U.S. trade or business reports              know the sales price or basis (such as a long-term capital gain 
recognized effectively connected capital gain (or loss) on a Part         from Form 8621), enter a description of the gain (or loss) in 
I, if short term capital gain (or loss) and Part II, if long term capital column (a) on a Part I with box C checked or Part II with box F 
gain (or loss), checking box (C) on Part I or box (F) on Part II, as      checked (depending on how long you held the property). If you 
applicable. Enter “From Schedule P (Form 1040-NR)” in column              have a gain, enter it in columns (d) and (h). If you have a loss, 
(a), enter the code “P” in column (f), and enter the gain (or loss)       enter it in columns (e) and (h). Complete any other columns you 
in column (h) with all other columns filled in.                           can.
Schedule P (Form 1120-F).  A foreign corporation that sells or 
exchanges an interest in a partnership engaged in a U.S. trade            Column (a)—Description of Property
or business reports recognized effectively connected capital gain         For stock, include the number of shares. You can use stock ticker 
(or loss) on a Part I, if short term capital gain (or loss) and Part II,  symbols or abbreviations to describe the property as long as 
if long term capital gain (or loss), checking box (C) on Part I or        they are based on the descriptions of the property as shown on 
box (F) on Part II, as applicable. Enter “From Schedule P (Form           Form 1099-B or 1099-S (or substitute statement).
1120-F)” in column (a), enter the code “P” in column (f), and             For a digital asset, include the full name or an abbreviated 
enter the gain (or loss) in column (h) with all other columns filled      symbol of the digital asset and the exact units sold or disposed 
in.                                                                       of in the transaction, and include the sale transaction ID number, 
Contingent payment debt instruments.   If you sell a taxable              if available.
contingent payment debt instrument subject to the 
noncontingent bond method at a gain, your gain is ordinary                Column (b)—Date Acquired
income (interest income), even if you hold the debt instrument as         Enter in this column the date you acquired the property. Enter the 
a capital asset. If you sell a taxable contingent payment debt            trade date for stocks and bonds you purchased on an exchange 
instrument subject to the noncontingent bond method at a loss,            or over-the-counter market. For a short sale, enter the date you 
your loss is an ordinary loss to the extent of your prior original        acquired the property delivered to the broker or lender to close 
issue discount (OID) inclusions on the debt instrument. If the            the short sale. For property you previously elected to treat as 
debt instrument is a capital asset, treat any loss that is more than      having been sold and reacquired on January 1, 2001 (or January 
your prior OID inclusions as a capital loss. See Regulations              2, 2001, for readily tradable stock), enter the date of the deemed 
section 1.1275-4(b) for exceptions to these rules.                        sale and reacquisition.
If you received a Form 1099-B (or substitute statement) 
reporting the sale of a taxable contingent payment debt                   If you received a Form 1099-B (or substitute statement), 
instrument subject to the noncontingent bond method and the               box 1b may help you determine when you acquired the property.
Ordinary box in box 2 is checked, an adjustment may be                    Inherited property. Generally, if you disposed of property that 
required. See the Worksheet for Contingent Payment Debt                   you acquired by inheritance, report the sale or exchange on a 
Instrument Adjustment in Column (g), later, to figure the                 Part II with the appropriate box checked (D, E, or F). Enter 
adjustment to enter in column (g).                                        “INHERITED” in column (b).
See Pub. 550 or Pub. 1212 for more details on any special                 Stock acquired on various dates.    If you sold a block of stock 
rules or adjustments that might apply.                                    (or similar property) that you acquired through several different 
Net asset value (NAV) method for money market funds.             If       purchases, you may report the sale on one row and enter 
you have a capital gain (or loss) determined under the NAV                “VARIOUS” in column (b). However, you must still report the 
method with respect to shares in a money market fund, enter the           short-term gain (or loss) on the sale on Part I and the long-term 
name of the fund followed by “(NAV)” in column (a) on a Part I            gain (or loss) on Part II.
with box C checked. Enter the net gain (or loss) in column (h). 
Leave all other columns blank. No long-term capital gain (or              Column (c)—Date Sold or Disposed Of
loss) can be entered under the NAV method.                                Enter in this column the date you sold or disposed of the 
Nondividend distributions. Distributions from a corporation               property. Use the trade date for stocks and bonds traded on an 
with respect to its stock that are a return of your cost (or other        exchange or over-the-counter market. For a short sale, enter the 
basis) aren’t taxed until you recover your cost (or other basis),         date you delivered the property to the broker or lender to close 
determined on a share-by-share basis. Reduce your cost (or                the short sale.
other basis) in a share by the distributions allocable to such            If you received a Form 1099-B (or substitute statement), 
share. After you have recovered your entire cost (or other basis)         box 1c may help you determine when you sold or disposed of the 
in a share, any later nondividend distribution allocable to that          property.
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           Column (d)—Proceeds (Sales Price)
with box C checked or Part II with box F checked (depending on 
                                                                          Follow the instructions below that apply to your transaction(s).
Instructions for Form 8949 (2023)                                                                                                           5

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You didn't receive a Form 1099-B or 1099-S (or substitute E, of the Schedule A to figure your basis in the property and Part
statement). If you didn't receive a Form 1099-B or 1099-S (or 2, column C, of the Schedule A indicates that the property
substitute statement) for a transaction, enter in column (d) the increased the estate tax liability of the decedent, you may be
net proceeds. The net proceeds equal the gross proceeds minus subject to a penalty equal to 20% of any resulting underpayment
any selling expenses (such as broker’s fees, commissions, and of tax because the basis reported isn’t consistent with the final
state and local transfer taxes). If you sold a call option and it was estate tax value of the property.
exercised, you adjust the sales price of the property sold under For more details, see Pub. 551; Pub. 550; or the instructions
the option for any option premiums (as instructed under Gain or for Form 8971 and Schedule A, available at IRS.gov/Form8971.
Loss From Options in the Instructions for Schedule D (Form
1040)). Adjustments to basis. Before you can figure any gain (or loss)
on a sale, exchange, or other disposition of property, you must
You received a Form 1099-B or 1099-S (or substitute state- usually make certain adjustments (increases and decreases) to
ment). If you received a Form 1099-B or 1099-S (or substitute the basis of the property. Increase the basis of your property by
statement) for a transaction, enter in column (d) the proceeds capital improvements. Decrease it by depreciation, amortization,
shown on the form or statement you received. If there are any and depletion. Other adjustments may be necessary for your
selling expenses or option premiums that aren't reflected on the property. See Pub. 551 for more information.
form or statement you received (by an adjustment to either the
proceeds or basis shown), enter “E” in column (f) and the If you sold shares of stock, adjust your basis in each share,
necessary adjustment in column (g). See the example under but not below zero, by subtracting all the nondividend
Column (g)—Amount of Adjustment, later. distributions allocable to such shares that were received before
the sale and that reduced your cost (or other basis) in such
If the proceeds you received were more than shown on Form shares. Also, adjust your basis for any stock splits. See Pub. 550
1099-B or 1099-S (or substitute statement), enter the correct for details. See Form 1099-B and How To Complete Form 8949,
proceeds in column (d). This might happen if, for example, box 4 Columns (f) and (g), later, for the adjustment you must make if
on Form 1099-S is checked. you received a Form 1099-B (or substitute statement) and the
You shouldn't have received a Form 1099-B (or substitute basis shown in box 1e is incorrect.
statement) for a transaction merely representing the return of
Increase the cost or other basis of a taxable OID debt
your original investment in a nontransferable obligation, such as
instrument by the amount of OID that you have included in gross
a savings bond or a certificate of deposit. But if you did, report
income for that instrument. See Pub. 550 for details.
the proceeds shown on Form 1099-B (or substitute statement) in
both columns (d) and (e). Increase the cost or other basis of a tax-exempt OID debt
instrument by the amount of tax-exempt OID that accrued on the
Column (e)—Cost or Other Basis debt instrument while held by you. See Pub. 550 for details.
The basis of property you buy is usually its cost, including the If you elect to currently include in income the market discount
purchase price and any costs of purchase, such as on a bond, increase the basis of the bond by the market discount
commissions. You may not be able to use the actual cost as the that has been included in income for that bond. See Pub. 550 for
basis if you inherited the property, got it as a gift, or received it in details.
a tax-free exchange or involuntary conversion or in connection
with a “wash sale.” If you don't use the actual cost, attach an If you elect to amortize bond premium on a taxable bond,
explanation of your basis. reduce the basis of the bond by any bond premium amortization
allowed as either an offset to interest income or as a deduction
The basis of property acquired by gift is generally the basis of for that bond. Reduce the basis of a tax-exempt bond by any
the property in the hands of the donor. The basis of inherited bond premium amortization for that bond. See Pub. 550 for
property is generally the fair market value at the date of death. details.
See Pub. 551 for details.
If a charitable contribution deduction is allowable because of
If you elected to recognize gain on property held on January a bargain sale of property to a charitable organization, you must
1, 2001, your basis in the property is its closing market price or allocate your basis in the property between the part sold and the
fair market value, whichever applies, on the date of the deemed part contributed based on the fair market value of each. See
sale and reacquisition, whether the deemed sale resulted in a Pub. 544 for details.
gain or an unallowed loss.
For compensatory options granted after 2013, the basis
Schedule A to Form 8971—Consistent basis reporting. If information reported to you on Form 1099-B (or substitute
you received a Schedule A to Form 8971 from an executor of an statement) won’t reflect any amount you included in income
estate or other person required to file an estate tax return and upon grant or exercise of the option. Increase your basis by any
you are a beneficiary who receives (or is to receive) property amount you included in income upon grant or exercise of the
from that estate, you will be required to report a basis consistent option. For compensatory options granted before 2014, any
with the final estate tax value of the property if Part 2, column C, basis information reported to you on Form 1099-B (or substitute
of the Schedule A you received indicates that the property statement) may or may not reflect any amount you included in
increased the estate tax liability of the decedent. In this case, income upon grant or exercise of the option; therefore, the basis
first use an amount that is equal to or less than the final estate may need to be adjusted. If the basis information reported to you
tax value listed in Part 2, column E, of the Schedule A. This on Form 1099-B (or substitute statement) doesn’t reflect an
amount is your initial basis in the property. You then adjust your amount you included in income upon grant or exercise of the
initial basis in the property, as described under Adjustments to option, increase your basis by the amount you included in
basis, later. The resulting amount is entered in column (e) of income upon grant or exercise of the option. See Pub. 525 for
Form 8949. more information.
If you received a supplemental Schedule A to Form
TIP 8971, use the most recently dated supplemental Solely for purposes of calculating a loss on the sale of the
Schedule A to determine your initial basis. stock of a specified 10%-owned foreign corporation, if a
corporate shareholder received an actual or constructive
Penalties for inconsistent basis reporting. If you use an dividend after December 31, 2017, and that dividend qualified
initial basis that is more than the amount listed in Part 2, column for the 100% dividends-received deduction, the shareholder

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must reduce its basis in the controlled foreign corporation stock  shown on Form 1099-B (or substitute statement) isn’t correct, 
in the amount of the dividend received, but not below zero.        see How To Complete Form 8949, Columns (f) and (g), later, for 
                                                                   the adjustment you must make.
Average basis.  You can use the average basis method to 
determine the basis of shares of stock if the shares are identical   If box 5 of Form 1099-B (or substitute statement) is checked, 
to each other, you acquired them at different prices and left them the property sold wasn't a covered security.
in an account with a custodian or agent, and either:                 For noncovered securities, enter the correct basis of the 
• They are shares in a mutual fund (or other regulated             property in column (e) if:
investment company);                                               • No basis is shown on Form 1099-B (or substitute statement), 
• They are shares you hold in connection with a dividend           or
reinvestment plan (DRP), and all the shares you hold in            • The basis shown wasn't reported to the IRS.
connection with the DRP are treated as covered securities          If the basis shown wasn’t reported to the IRS, see How To 
(defined below); or                                                Complete Form 8949, Columns (f) and (g), later, for further 
• You acquired them after 2011 in connection with a DRP.           information about how to report the correct basis.
Shares are identical if they have the same CUSIP number, 
except that shares of stock in a DRP aren't identical to shares of Column (f)—Code
stock that aren't in a DRP, even if they have the same CUSIP       In order to explain any adjustment to gain (or loss) in column (g), 
number. (CUSIP numbers are security identification numbers.)       enter the appropriate code(s) in column (f). See How To 
  If you are using the average basis method and received a         Complete Form 8949, Columns (f) and (g), later. If more than 
Form 1099-B (or substitute statement) that shows an incorrect      one code applies, enter all the codes that apply in alphabetical 
basis, enter “B” in column (f), enter the basis shown on Form      order (for example, “BOQ”). Don't separate the codes by a space 
1099-B (or substitute statement) in column (e), and see How To     or comma.
Complete Form 8949, Columns (f) and (g), later. For details on 
making the election and figuring average basis, see section        Column (g)—Amount of Adjustment
1012, Pub. 550, and Regulations section 1.1012-1(e).               Enter in this column any necessary adjustments to gain (or loss). 
Form 1099-B. If the property you sold was a covered security,      Enter negative amounts in parentheses. Also, enter a code in 
its basis should be shown in box 1e of the Form 1099-B (or         column (f) to explain the adjustment. See How To Complete 
substitute statement) you received from your broker. Generally, a  Form 8949, Columns (f) and (g), later.
covered security is any of the following.
• Stock you acquired after 2010 (generally after 2011, if in a     More than one code. If you entered more than one code in 
mutual fund or other regulated investment company, or acquired     column (f) on the same row, enter the net adjustment in column 
through a DRP).                                                    (g). For example, if one adjustment is $5,000 and another is 
• Certain stock held in a mutual fund or in connection with a      ($1,000), enter $4,000 ($5,000 − $1,000).
DRP for which a single-account election is in effect.                Example. You sold your main home in 2023 for $320,000 
• Certain debt instruments you acquired after 2013.                and received a Form 1099-S showing the $320,000 gross 
• Certain options, warrants, and stock rights you granted or       proceeds. The home's basis was $100,000. You had selling 
acquired after 2013.                                               expenses of $20,000 that weren’t included on your Form 1099-S. 
• A securities future contract you entered into after 2013.        Under the tests described in Sale of Your Home in the 
• Variable rate debt instruments acquired after 2015.              Instructions for Schedule D (Form 1040), you can exclude the 
• Inflation-indexed debt instruments acquired after 2015.          entire $200,000 gain from income. On Form 8949, Part II, check 
• Contingent payment debt instruments acquired after 2015.         box F at the top. Complete columns (a), (b), and (c). Enter 
• Convertible debt instruments acquired after 2015.                $320,000 in column (d) and $100,000 in column (e). Enter “EH” 
• Options on debt instruments with payments denominated in         in column (f). In column (g), enter $220,000 ($20,000 selling 
(or determined by reference to) a currency other than the U.S.     expenses + $200,000 exclusion) as a negative number. Put it in 
dollar and granted or acquired after 2015.                         parentheses to show it is negative. In column (h), enter -0- 
• Options issued as part of investment units and granted or        ($320,000 − $100,000 − $220,000). If this is your only 
acquired after 2015.                                               transaction on this Part II, enter $320,000 in column (d) on 
  For more information on covered securities, see section          line 10 of Schedule D (Form 1040), $100,000 in column (e), 
6045(g) and Regulations section 1.6045-1.                          ($220,000) in column (g), and -0- in column (h).
  For covered securities, enter the basis shown on Form 
1099-B (or substitute statement) in column (e). If the basis 

Instructions for Form 8949 (2023)                                                                                                   7

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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.

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 Part
incorrect 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
B 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 Report the transaction on the correct part of Form 8949,
statement) and the type of gain (or loss) 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 T
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). As a
N 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 sold or exchanged your main home at a Report the sale or exchange on Form 8949 as you would if
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)), and can exclude instructions for column (g).
some or all of the gain

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THEN enter this code
IF . . . AND. . .
in column (f) . . .
You received a Form 1099-B (or substitute Use the Worksheet for Accrued Market Discount
statement) showing accrued market Adjustment in Column (g), later, to figure the amount to
discount in box 1f 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 QSB stock and can Report the sale or exchange on Form 8949 as you would if
exclude part of the gain you weren't taking the exclusion and enter the amount of
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).
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).

Instructions for Form 8949 (2023) 9

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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 1099-S (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 E 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 See Small Business (Section 1244) Stock in the
worthlessness of small business (section Schedule D (Form 1040) 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 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
You are a nonresident alien individual, Report on Form 8949 the gain or loss on the sale or
foreign trust, foreign estate, or foreign exchange by a nonresident alien individual, foreign trust,
corporation who sold or exchanged an foreign estate, or foreign corporation of an interest in a
interest in a partnership engaged in a U.S. partnership that is engaged in a U.S. trade or business.
trade or business P Enter in column (g) any adjustment resulting from the
application of Regulations section 1.864(c)(8)-1(b) and (c).
If you are required to file Schedule P (Form 1040-NR), see
the instructions for lines 9 and 17. If you are required to file
Schedule P (Form 1120-F), see the instructions for line 9.
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).
None of the other statements in this column Leave columns (f) and (g) blank.
apply because you have no adjustments

Column (h)—Gain (or Loss) Example 3—Adjustment. Column (d) is $6,000, column (e)
Figure gain (or loss) on each row. First, subtract the cost or other is $2,000, and column (g) is ($1,000). Enter $3,000 in column
basis in column (e) from the proceeds (sales price) in column (h).
(d). Then take into account any adjustments in column (g). Enter Example 4—Adjustment for incorrect basis. You sold
the gain (or loss) in column (h). Enter negative amounts in stock for $1,000. You had owned the stock for 3 months. Your
parentheses. correct basis for the stock is $100, but you receive a Form
Example 1—Gain. Column (d) is $6,000 and column (e) is 1099-B that shows your basis is $900 and shows your broker
$2,000. Enter $4,000 in column (h). reported that basis to the IRS. Enter $900 on line 1 of the
Worksheet for Basis Adjustments in Column (g), later. Enter
Example 2—Loss. Column (d) is $6,000 and column (e) is $100 on line 2 of the worksheet. Because line 1 is larger than
$8,000. Enter ($2,000) in column (h). 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 Part I

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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.                 

with box A checked at the top. Enter “B” in column (f). Enter                                                  Example 6—Digital asset.                        You are a self-employed 
$1,000 in column (d) and $900 in column (e). To figure your gain                                         attorney who performs legal services for a client. The client gives 
(or loss), subtract $900 from $1,000. Combine the result, $100,                                          you one unit of digital asset A as payment for services. At the 
with the $800 adjustment in column (g). Your gain is $900 ($100                                          time of the payment, the fair market value of one unit of digital 
+ $800). Enter $900 in column (h).                                                                       asset A is $10,000. You report $10,000 in self-employment 
Example 5—Digital asset.                   You purchased one unit of digital                             income (the fair market value of one unit of digital asset A). Two 
asset A on June 1, 2020, for $1,000. On June 1, 2023, you use a                                          months later, when the fair market value of one unit of digital 
platform for trading digital assets to exchange your unit of digital                                     asset A is $12,000, you decide to sell it. You must report a 
asset A for one unit of digital asset B with a fair market value of                                      short-term capital gain of $2,000, which is the difference 
$3,000. You must report a long-term capital gain of $2,000.                                              between the sales price ($12,000) and your basis in one unit of 
                                                                                                         digital asset A ($10,000).

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.                 

Instructions for Form 8949 (2023)                                                                                                                                                      11

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How To Report an Election To Defer Tax on                            Reporting the deferral election. Each QOF investment of 
Eligible Gain Invested in a Qualified Opportunity                    section 1231 gains will use two separate rows in Part II 
Fund (QOF)                                                           (long-term transactions) of Form 8949.
    For more information on QOFs, see Pub. 544.                      • For the first row, in column (a), write “QOF INVESTMENT 
TIP                                                                  FROM FORM 4797.” Leave columns (b) through (e) blank. Enter 
                                                                     code “O” in column (f), and in column (g) report the amount of 
If you elect to defer tax on an eligible gain by investing in a      the QOF investment from Form 4797 as a positive number. For 
QOF, report the eligible gain on the form and in the manner          example, if ($75,000) was reported in column (g) of Form 4797, 
otherwise instructed. For example, individual taxpayers would        report $75,000 in column (g) of Form 8949.
report gain from the sale of stock on Form 8949 and Schedule D       • For the second row, in column (a), enter only the EIN of the 
(Form 1040). If the gain is reported on Form 8949, do not make       QOF investment. In column (b), enter the date of the QOF 
any adjustments for the deferral in column (g).                      investment. Leave columns (c), (d), and (e) blank. Enter code “Z” 
                                                                     in column (f) and the amount of the deferred gain as a negative 
Report the deferral of the eligible gain on its own row of Form 
                                                                     number (in parentheses) in column (g).
8949 in Part I with box C checked or Part II with box F checked 
(depending on whether the gain being deferred is short term or       Reporting the inclusion. Each inclusion will use two separate 
long term). If you made multiple investments in different QOFs or    rows in Part II.
in the same QOF on different dates, use a separate row for each 
investment. If you invested eligible gains of the same character     • For the first row, in column (a), write “QOF INCLUSION 
(but from different transactions) on the same date into the same     EVENT FROM SECTION 1231 GAINS.” Leave columns (b) 
QOF, you can group those investments on the same row. In             through (e) blank. Enter code “O” in column (f), and in column (g) 
column (a), enter only the employer identification number (EIN)      report the amount of the included section 1231 gains to Form 
of the QOF into which you invested. In column (b), enter the date    4797 as a negative number (in parentheses). For example, 
you invested in the QOF. Leave columns (c), (d), and (e) blank.      $75,000 inclusion of section 1231 gains was reported in column 
Enter code “Z” in column (f) and the amount of the deferred gain     (g) of Form 4797, report ($75,000) in column (g) of Form 8949.
as a negative number (in parentheses) in column (g).                 • For the second row, enter the EIN of the QOF investment in 
Your investment in a QOF can be used to defer only long-term         column (a). Complete columns (b) and (c). Leave (d) and (e) 
gain, only short-term gain, or a combination of both short-term      blank. Enter code "Y" in column (f), and in column (g) enter the 
and long-term gain. You do not need to trace or allocate the         amount of previously deferred gain as a positive number.
funds invested in a QOF to the specific gain being deferred, but 
the investment in the QOF must have occurred within the              How To Report Gain Previously Deferred in a 
180-day period beginning on the date the deferred gain was           QOF Investment
realized. If you realized both short-term and long-term gains        If you sold or exchanged your investment in a QOF during the tax 
during the 180-day period, you can choose how much of each           year, you must report the amount of eligible gain that you 
gain to defer by reporting the deferral in Part I or Part II, as     previously deferred and that you are now recognizing. Report the 
applicable. The character of the eligible gain will survive the      gain from each investment on its own row. Check box C in Part I 
investment in the QOF. When you recognize the eligible gain          or check box F in Part II depending on whether the gain is short 
(either when you sell or exchange or otherwise dispose of your       term or long term. The gain you recognize will be the same 
investment in the QOF or December 31, 2026, whichever is             character as the gain you deferred. Put the EIN of the QOF 
earlier), the gain you recognize will be the same character as the   investment you are selling in column (a). Complete columns (b), 
gain you deferred.                                                   (c), (d), and (e). Enter code "Y" in column (f), and enter the 
    If you are attaching multiple Forms 8949 to your return,         amount of previously deferred gain as a positive number in 
TIP attach the Form(s) 8949 that lists code "Z" in column (f)        column (g).
    first.                                                               If you disposed of your investment in a QOF, you will also 
                                                                     TIP need to complete Form 8997. See the instructions for 
    If you elect to defer tax on an eligible gain by investing in        Form 8997 for more information.
TIP a QOF, you will need to complete a Form 8997 for each 
    year you hold the investment and for the year you 
dispose of the investment. If you have held that investment for      Line 2
more than 5 years, see the instructions for Form 8997 for            The total of the amounts in column (h) of line 2 of all your Forms 
additional information regarding the basis of that investment.       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 
How To Report Eligible Gains From Section 1231                       line 2 of all your Forms 8949 with box A checked should equal 
Property                                                             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 
Taxpayers deferring eligible gains from section 1231 property,       line 2 of all your Forms 8949 with box E checked should equal 
including gains from installment sales and like-kind exchanges,      the amount you get by combining columns (d), (e), and (g) on 
by investing in a QOF must report the deferral election on Form      line 9 of Schedule D.
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.

12                                                                                            Instructions for Form 8949 (2023)

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