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Department of the Treasury
Internal Revenue Service
2022

Instructions for Form 8949

Sales and Other Dispositions of Capital Assets

Section references are to the Internal Revenue If all Forms 1099-B (or all substitute Corporations also use Form 8949 to
Code unless otherwise noted. statements) you received show basis was report their share of gain (or loss) from a
reported to the IRS and no correction or partnership, estate, or trust.
Future Developments adjustment is needed, you may not need For corporations and partnerships
For the latest information about to file Form 8949. See Exception 1 under meeting certain criteria, an exception to
developments related to Form 8949 and the instructions for line 1, later. some of the normal requirements for
its instructions, such as legislation completing Form 8949 has been provided.
enacted after they were published, go to If you received a Schedule A to Form See Special provision for certain
IRS.gov/Form8949. 8971 for property and Part 2, column C, of corporations, partnerships, securities
the Schedule A indicates that the property dealers, and other qualified entities under
What’s New increased the estate tax liability, you will the instructions for line 1, later.
be required to report a basis consistent
Estates and trusts. Both grantor and with the final estate tax value of the Estates and trusts. Estates and trusts
non-grantor trusts must use Form 8949. property reported in Part 2, column E, of (including non-grantor trusts) use Form
Foreign corporate partners. Foreign the schedule. See Schedule A to Form 8949 to report the following.
corporate partners should use this form to 8971—Consistent basis reporting under • The sale or exchange of a capital asset
report any recognized effectively Column (e)—Cost or Other Basis, later, for not reported on another form or schedule.
connected capital gain (or loss) in Part II more information on consistent basis • Nonbusiness bad debts.
with box F checked. Enter “From reporting and the amount you will report • Worthlessness of a security.
Schedule P (Form 1120-F)” in column (a), on Form 8949. • The election to defer capital gain
invested in a QOF.
and enter the gain (or loss) in column (h) Individuals. Individuals use Form 8949 The disposition of interests in QOFs.
•
with all other columns filled in. See the to report the following.
Instructions for Schedule P (Form • The sale or exchange of a capital asset Schedule D. Use Schedule D for the
1120-F). not reported on another form or schedule. following purposes.
• Gains from involuntary conversions • To figure the overall gain (or loss) from
(other than from casualty or theft) of transactions reported on Form 8949.
General Instructions capital assets not used in your trade or • To report a gain from Form 6252 or Part
File Form 8949 with the Schedule D for business. I of Form 4797.
the return you are filing. This includes • Nonbusiness bad debts. • To report a gain (or loss) from Form
Schedule D of Forms 1040, 1040-SR, • Worthlessness of a security. 4684, 6781, or 8824.
1041, 1065, 8865, 1120, 1120-S, 1120-C, • The election to defer capital gain • To report capital gain distributions not
1120-F, 1120-FSC, 1120-H, invested in a qualified opportunity fund reported directly on Form 1040 or
1120-IC-DISC, 1120-L, 1120-ND, (QOF). 1040-SR, line 7 (or effectively connected
1120-PC, 1120-POL, 1120-REIT, • The disposition of interests in QOFs. capital gain distributions not reported
1120-RIC, and 1120-SF; and certain If you are filing a joint return, complete directly on Form 1040-NR, line 7).
Forms 990-T. as many copies of Form 8949 as you need • To report a capital loss carryover from
Complete Form 8949 before you complete to report all of your and your spouse's the previous tax year to the current tax
line 1b, 2, 3, 8b, 9, or 10 of Schedule D. transactions. You and your spouse may year.
list your transactions on separate forms or • To report your share of a gain (or loss)
Purpose of Form you may combine them. However, you from a partnership, S corporation, estate,
must include on your Schedule D the or trust. (However, corporations report this
Use Form 8949 to report sales and totals from all Forms 8949 for both you type of gain (or loss) on Form 8949.)
exchanges of capital assets. Form 8949 and your spouse. • To report certain transactions you don't
allows you and the IRS to reconcile have to report on Form 8949, such as
amounts that were reported to you and the Corporations and partnerships. transactions reported to you on a Form
IRS on Forms 1099-B or 1099-S (or Corporations and partnerships use Form 1099-B (or substitute statement) showing
substitute statements) with the amounts 8949 to report the following. basis was reported to the IRS and for
you report on your return. If you receive • The sale or exchange of a capital asset which you have no adjustments, as
Forms 1099-B or 1099-S (or substitute not reported on another form or schedule. explained under Exception 1, later.
statements), always report the proceeds • Sale of stock of a specified 10%-owned Individuals, estates, and trusts also use
(sales price) shown on the form (or foreign corporation, adjusted for the Schedule D to report undistributed
statement) in column (d) of Form 8949. If dividends-received deduction under long-term capital gains from Form 2439.
Form 1099-B (or substitute statement) section 245A, but only if the sale would
shows that the cost or other basis was otherwise generate a loss. Additional information. See the
reported to the IRS, always report the • Nonbusiness bad debts. instructions for the Schedule D you are
basis shown on that form (or statement) in • Undistributed long-term capital gains filing for detailed information about other
column (e). If any correction or adjustment from Form 2439. topics, including the following.
to these amounts is needed, make it in • Worthlessness of a security. • Other forms you may have to file.
column (g). See How To Complete Form • The election to defer capital gain • The definition of capital asset.
8949, Columns (f) and (g), later, for details invested in a QOF.
about these adjustments. • The disposition of interests in QOFs.

Jan 3, 2023 Cat. No. 59421Z

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• Certain digital assets, such as Bitcoin. The IRS partners with companies partnerships, estates, or trusts on the
Also, see the Instructions for Form 1040 that offer Form 8949 software that appropriate part of Form 8949. Report a
and IRS.gov/VirtualCurrencyFAQs. can import trades from many net short-term capital gain (or loss) on Part
• Reporting capital gain distributions, brokerage firms and accounting software I (with box C checked) and a net long-term
undistributed capital gains, the sale of a that can help you keep track of your capital gain (or loss) on Part II (with box F
main home, the sale of capital assets held adjusted basis in securities. To find out checked). In column (a), enter “From
for personal use, or the sale of a more, go to IRS.gov/Efile. Schedule K-1 (Form 1065)” or “From
partnership interest. Schedule K-1 (Form 1041),” whichever
• Capital losses, nondeductible losses, Short-Term or Long-Term applies; enter the gain (or loss) in column
and losses from wash sales. Separate your capital gains and losses (h); and leave all other columns blank.
• Traders in securities. according to how long you held or owned If more than one Schedule K-1 is
• Short sales. the property. received, report each on a separate row.
• Gain or loss from options. Include additional identifying information,
• Installment sales. The holding period for short-term such as “Partnership X.”
• Demutualization of life insurance capital gains and losses is generally 1
companies. year or less. Certain partnership interests Section 1061 Reporting
• Exclusion or rollover of gain from the held in connection with the performance of Section 1061 recharacterizes certain
sale of qualified small business (QSB) services may be subject to different long-term capital gains of a partner that
stock. holding period rules. See the Schedule D holds one or more applicable partnership
• Any other rollover of gain. instructions for more information. Report interests as short-term capital gains. An
• Exclusion of gain from the sale or these transactions on Part I of Form 8949 applicable partnership interest is an
exchange of DC Zone assets or qualified (or line 1a of Schedule D if you can use interest in a partnership that is transferred
community assets. Exception 1 under the instructions for to or held by a taxpayer, directly or
• Deferral of gain invested in a QOF. line 1, later). indirectly in connection with the
• Certain other items that get special The holding period for long-term capital performance of substantial services by the
treatment. gains and losses is generally more than 1 taxpayer or any other related person, in an
• Special reporting rules for corporations, year. Certain partnership interests held in applicable trade or business. See Section
partnerships, estates, and trusts in certain connection with the performance of 1061 Reporting Guidance FAQs for
situations. services may be subject to different reporting of section 1061
For more information about reporting holding period rules. See the Schedule D recharacterization amounts on the Form
on Forms 6252, 4797, 4684, 6781, and instructions for more information. Report 8949.
8824, see the instructions for those forms. these transactions on Part II of Form 8949 Digital Assets
See Pub. 544 and Pub. 550 for more (or line 8a of Schedule D if you can use
details. Exception 1 under the instructions for A digital asset is a digital representation of
line 1, later). value, other than a representation of the
Basis and Recordkeeping U.S. dollar or a foreign currency, that is
Basis is the amount of your investment in To figure the holding period, begin recorded on a cryptographically secured
property for tax purposes. The basis of counting on the day after you received the distributed ledger or any similar
property you buy is usually its cost. You property and include the day you disposed technology. A digital asset is treated as
need to know your basis to figure any gain of it. property, and general tax principles that
(or loss) on the sale or other disposition of Generally, if you disposed of property apply to property transactions apply to
the property. You must keep accurate that you acquired by inheritance, report transactions using digital assets, including
records that show the basis and, if the disposition as a long-term gain (or how to figure your holding period for
applicable, adjusted basis of your loss) regardless of how long you held the short-term and long-term capital gains and
property. Your records should show the property. losses explained earlier under Short-Term
purchase price, including commissions; or Long-Term. Digital assets include
increases to basis, such as the cost of A nonbusiness bad debt must be property that has been referred to as
improvements; and decreases to basis, treated as a short-term capital loss. See “convertible virtual currency,” and
such as depreciation, nondividend Pub. 550 for what qualifies as a “cryptocurrency,” and “non-fungible
distributions on stock, and stock splits. nonbusiness bad debt and how to enter it tokens.” If a particular asset has the
on Part I of Form 8949. characteristics of a digital asset, it will be
For more information on basis, see treated as a digital asset for federal
Column (e)—Cost or Other Basis, later, Form 1099-B. If you received a Form
and the following publications. 1099-B (or substitute statement) for a income tax purposes. For more
• Pub. 550, Investment Income and transaction, box 2 may help you determine information on the tax treatment of digital
Expenses. whether your gain (or loss) is short term or assets, see Notice 2014-21, Rev. Rul.
• Pub. 551, Basis of Assets. long term or subject to special rules. If 2019-24, and IRS.gov/
box 2 is blank and code X is in the VirtualCurrencyFAQs. For more
If you lost or didn't keep records to "Applicable checkbox on Form 8949" box information on the tax treatment of
determine your basis in securities, contact near the top of Form 1099-B, your broker property transactions and on short-term
your broker for help. If you receive a Form doesn't know whether your gain (or loss) is and long-term capital gains and losses,
1099-B (or substitute statement), your short term or long term. Use your own see Pub. 544.
broker may have reported your basis for records to determine whether your gain (or Rounding Off to Whole Dollars
these securities in box 1e. loss) is short term or long term. You can round off cents to whole dollars
Corporation's Gains and on Form 8949. If you do round to whole
Losses From Partnerships, dollars, round all amounts. To round, drop
cent amounts under 50 cents and
Estates, or Trusts increase cent amounts over 49 cents to
Report a corporation's share of capital the next dollar. For example, $1.49
gains and losses from investments in becomes $1 and $1.50 becomes $2.

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If you don't need to make any If you don't need to make any
Specific Instructions TIP adjustments to the basis or type of TIP adjustments to the basis or type of
Report short-term gains and losses on gain (or loss) reported to you on gain (or loss) reported to you on
Part I. Report long-term gains and losses Form 1099-B (or substitute statement) or Form 1099-B (or substitute statement) or
on Part II. to your gain (or loss) for any transactions to your gain (or loss) for any transactions
for which basis has been reported to the for which basis has been reported to the
IRS (normally reported on Form 8949 with IRS (normally reported on Form 8949 with
Line 1 box A checked), you don't have to include box D checked), you don't have to include
Enter all sales and exchanges of capital those transactions on Form 8949. Instead, those transactions on Form 8949. Instead,
assets, including stocks, bonds, and real you can report summary information for you can report summary information for
estate (if not reported on line 1a or 8a of those transactions directly on Schedule D. those transactions directly on Schedule D.
Schedule D or on Form 4684, 4797, 6252, For more information, see Exception 1, For more information, see Exception 1,
6781, or 8824). Include these transactions later. later.
even if you didn't receive a Form 1099-B
or 1099-S (or substitute statement) for the Box B. Report on a Part I with box B Box E. Report on a Part II with box E
transaction. However, if the property you checked all short-term transactions checked all long-term transactions
sold was your main home, see Sale of reported to you on Form 1099-B (or reported to you on Form 1099-B (or
Your Home in the Instructions for substitute statement) without an amount substitute statement) without an amount
Schedule D (Form 1040). shown for cost or other basis or showing shown for cost or other basis or showing
Enter all losses from the disposition of that cost or other basis wasn't reported to that cost or other basis wasn't reported to
a portion of a MACRS asset not used in a the IRS. If your statement shows cost or the IRS. If your statement shows cost or
trade or business but held for investment other basis for the transaction was other basis for the transaction was
or for use in a not for profit activity. If you ‐ ‐ reported to the IRS (for example, if box 3 reported to the IRS (for example, if box 3
have a gain from the partial disposition of of Form 1099-B is checked), see Box A of Form 1099-B is checked), see Box D
a MACRS asset, see Disposition of above. above.
Depreciable Property Not Used in Trade
or Business in the Form 4797 instructions. Box C. Report on a Part I with box C Box F. Report on a Part II with box F
checked all short-term transactions for checked all long-term transactions for
Enter the details of each transaction on which you can't check box A or B because which you can't check box D or E because
a separate row (unless one of the you didn't receive a Form 1099-B (or you didn't receive a Form 1099-B (or
Exceptions to reporting each transaction substitute statement). substitute statement).
on a separate row, described later, applies You don't need to complete and file an
to you). Part II. Use a separate Part II for each
type of long-term transaction described in entire copy of Form 8949 (Parts I and II) if
Part I. Use a separate Part I for each type the text for one of the boxes (D, E, or F) at you can check a single box to describe all
of short-term transaction described in the the top of Part II. Include on each Part II your transactions. In that case, complete
text for one of the boxes (A, B, or C) at the only transactions described in the text for and file either Part I or II and check the box
top of Part I. Include on each Part I only the box you check (D, E, or F). Check only that describes the transactions.
transactions described in the text for the one box on each Part II. For example, if Otherwise, complete a separate Part I or II
box you check (A, B, or C). Check only you check box D in one Part II, include on for each category of your transactions, as
one box on each Part I. For example, if that Part II only long-term transactions described above.
you check box A in one Part I, include on reported to you on a statement showing Include on your Schedule D the totals
that Part I only short-term transactions basis was reported to the IRS. Complete from all your Parts I and II. Form 8949 and
reported to you on a statement showing as many copies of Part II as you need to Schedule D explain how to do this.
basis was reported to the IRS. Complete report all transactions of each type (D, E,
as many copies of Part I as you need to or F). Exceptions to reporting each transac-
tion on a separate row. There are
report all transactions of each type (A, B, If you are attaching multiple Forms exceptions to the rule that you must report
or C). 8949 to your return, attach the Form(s) each of your transactions on a separate
If you are attaching multiple Forms 8949 that lists code "Z" for investments in row of Part I or II. Any taxpayer who
8949 to your return, attach the Form(s) a QOF in column (f) first. qualifies can use Exception 1 or Exception
8949 that lists code "Z" in column (f) first. If you received a Form 1099-B for a 2 below. Taxpayers who file Form 1120-S
If you received a Form 1099-B for a transaction, the “Applicable checkbox on or Form 1065 and other qualified entities
transaction, the “Applicable checkbox on Form 8949” box near the top of that form should see Special provision for certain
Form 8949” box near the top of that form may help you determine which box to corporations, partnerships, securities
may help you determine which box to check on the Part II where you report that dealers, and other qualified entities, later.
check on the Part I where you report that transaction. A substitute statement you
transaction. A substitute statement you get instead of Form 1099-B may also tell Exception 1. Form 8949 isn't required
get instead of Form 1099-B may also tell you which box to check. for certain transactions. You may be able
you which box to check. to aggregate those transactions and report
Box D. Report on a Part II with box D them directly on either line 1a (for
Box A. Report on a Part I with box A checked all long-term transactions short-term transactions) or line 8a (for
checked all short-term transactions reported to you on Form 1099-B (or long-term transactions) of Schedule D.
reported to you on Form 1099-B (or substitute statement) with an amount This option applies only to transactions
substitute statement) with an amount shown for cost or other basis unless the (other than sales of collectibles) for which:
shown for cost or other basis unless the statement indicates that amount wasn't • You received a Form 1099-B (or
statement indicates that amount wasn't reported to the IRS. If your statement substitute statement) that shows basis
reported to the IRS. If your statement shows cost or other basis but indicates it was reported to the IRS and doesn't show
shows cost or other basis but indicates it wasn't reported to the IRS (for example, if any adjustments in box 1f or 1g;
wasn't reported to the IRS (for example, if box 3 of Form 1099-B isn't checked), see • The Ordinary box in box 2 isn’t
box 3 of Form 1099-B isn't checked), see Box E below. checked;
Box B below.

Instructions for Form 8949 (2022) -3-

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• You don't need to make any dealers, and nonprofit organizations. receive a Form 1099-R showing an
adjustments to the basis or type of gain (or Individual taxpayers aren't eligible except amount in box 3, report the box 3 amount
loss) reported on Form 1099-B (or in rare circumstances. on a Part II with box F checked. Enter
substitute statement), or to your gain (or You may enter summary totals instead “Form 1099-R” in column (a). Enter the
loss); and of reporting the details of each transaction box 3 amount in column (d). Also,
• You aren’t electing to defer income due on a separate row of Part I or II or on complete column (h).
to an investment in a QOF and aren’t attached statements if: Form 2438. Enter any net short-term
terminating deferral from an investment in
a QOF. 1. You file Form 1120-S or 1065, or capital gain from line 4 of Form 2438 on a
are a taxpayer exempt from receiving Part I with box C checked. Enter “Net
If you choose to report these Form 1099-B, such as a corporation or short-term capital gain from Form 2438,
transactions directly on Schedule D, you exempt organization, under Regulations line 4” in column (a), enter the gain in
don't need to include them on Form 8949 section 1.6045-1(c)(3)(i)(B); and column (h), and leave all other columns
and don't need to attach a statement. For blank.
more information, see the Schedule D 2. You must report more than five
instructions. transactions for that part. Enter any amount from line 12 of Form
2438 on a Part II with box F checked.
If you qualify to use Exception 1 and If this provision applies to you, enter the Enter “Undistributed capital gains not
also qualify to use Exception 2, you can summary totals on line 1. For short-term designated (from Form 2438)” in column
use both. Report the transactions that transactions, check box C at the top of (a), enter the amount of the gain in column
qualify for Exception 1 directly on either Part I even if the summary totals include (h), and leave all other columns blank.
line 1a or 8a of Schedule D, whichever transactions described in the text for box
applies. Report the rest of your A or B. For long-term transactions, check Form 2439. Corporations and
transactions as explained in Exception 2. box F at the top of Part II even if the partnerships report undistributed
summary totals include transactions long-term capital gains from Form 2439 on
Exception 2. Instead of reporting described in the text for box D or E. Enter a Part II with box F checked. Enter “From
each of your transactions on a separate “Available upon request” in column (a). Form 2439” in column (a), enter the gain in
row of Part I or II, you can report them on Leave columns (b) and (c) blank. Enter column (h), and leave all other columns
an attached statement containing all the “M” in column (f). If other codes also blank. Individuals report undistributed
same information as Parts I and II and in a apply, enter all of them in column (f). Enter long-term capital gains from Form 2439 on
similar format (that is, description of the totals that apply in columns (d), (e), line 11 of Schedule D (Form 1040).
property, dates of acquisition and (g), and (h). Estates and trusts report those amounts
disposition, proceeds, basis, adjustment on line 11 of Schedule D (Form 1041).
and code(s), and gain (or loss)). Use as Don't use a separate row for the totals
many attached statements as you need. from each broker. Instead, enter the Schedule P (Form 1120-F). Foreign
Enter the combined totals from all your summary totals from all brokers on a partner interest in a partnership reports
attached statements on Parts I and II with single row of Part I (with box C checked) recognized effectively connected capital
the appropriate box checked. or Part II (with box F checked). gain (or loss) on a Part II with box F
checked. Enter “From Schedule P (Form
For example, report on Part I with box B This special provision is not
1120-F)” in column (a), and enter the gain
checked all short-term gains and losses ! available for the election to defer (or loss) in column (h) with all other
from transactions your broker reported to CAUTION eligible gain by investing in a
columns filled in.
you on a statement showing basis wasn't QOF. Taxpayers who elect to defer
reported to the IRS. Enter the name of the eligible gain must report the details of Contingent payment debt instruments.
broker followed by the words “see each investment in a QOF on Form 8949 If you sell a taxable contingent payment
attached statement” in column (a). Leave in the manner described under How To debt instrument subject to the
columns (b) and (c) blank. Enter “M” in Report an Election To Defer Tax on noncontingent bond method at a gain,
column (f). If other codes also apply, enter Eligible Gain Invested in a QOF, later. your gain is ordinary income (interest
all of them in column (f). Enter the totals income), even if you hold the debt
that apply in columns (d), (e), (g), and (h). E-file. If you e-file your return but choose instrument as a capital asset. If you sell a
If you have statements from more than not to report each transaction on a taxable contingent payment debt
one broker, report the totals from each separate row on the electronic return, you instrument subject to the noncontingent
broker on a separate row. must either (a) include Form 8949 as a bond method at a loss, your loss is an
PDF attachment to your return, or (b) ordinary loss to the extent of your prior
Don't enter “Available upon request” attach Form 8949 to Form 8453 (or the original issue discount (OID) inclusions on
and summary totals in lieu of reporting the appropriate form in the Form 8453 series) the debt instrument. If the debt instrument
details of each transaction on Part I or II or and mail the forms to the IRS. (However, is a capital asset, treat any loss that is
attached statements. you can't attach a paper Form 8949 to more than your prior OID inclusions as a
Exception 2 is not available for the Form 8453-FE.) You can attach one or capital loss. See Regulations section
more statements containing all the same
! election to defer eligible gain by 1.1275-4(b) for exceptions to these rules.
CAUTION investing in a QOF. Taxpayers information as Form 8949, instead of If you received a Form 1099-B (or
who elect to defer eligible gain must report attaching Form 8949, if the statements are substitute statement) reporting the sale of
the details of each investment in a QOF on in a format similar to Form 8949. a taxable contingent payment debt
Form 8949 in the manner described under However, this doesn't apply to instrument subject to the noncontingent
How To Report an Election To Defer Tax transactions that qualify for Exception 1 or bond method and the Ordinary box in
on Eligible Gain Invested in a QOF, later. the Special provision for certain box 2 is checked, an adjustment may be
corporations, partnerships, securities required. See the Worksheet for
Special provision for certain dealers, and other qualified entities, Contingent Payment Debt Instrument
corporations, partnerships, securities earlier. In those cases, an attachment, a Adjustment in Column (g), later, to figure
dealers, and other qualified entities. statement, or Form 8453 isn’t required. the adjustment to enter in column (g).
This special provision applies to certain
corporations, partnerships, securities Charitable gift annuity. If you are the
beneficiary of a charitable gift annuity and

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See Pub. 550 or Pub. 1212 for more of the property as shown on Form 1099-B didn't receive a Form 1099-B or 1099-S
details on any special rules or adjustments or 1099-S (or substitute statement). (or substitute statement) for a transaction,
that might apply. For a digital asset, include the full name enter in column (d) the net proceeds. The
Net asset value (NAV) method for or an abbreviated symbol of the digital net proceeds equal the gross proceeds
money market funds. If you have a asset and the exact amount of units sold minus any selling expenses (such as
capital gain (or loss) determined under the or disposed of in the transaction, and broker’s fees, commissions, and state and
NAV method with respect to shares in a include the sale transaction ID number, if local transfer taxes). If you sold a call
money market fund, enter the name of the available. option and it was exercised, you adjust the
sales price of the property sold under the
fund followed by “(NAV)” in column (a) on If you inherited the property from option for any option premiums (as
a Part I with box C checked. Enter the net someone who died in 2010 and the instructed under Gain or Loss From
gain (or loss) in column (h). Leave all other executor of the estate made the election to Options in the Instructions for Schedule D
columns blank. No long-term capital gain file Form 8939, also enter “INH-2010” in (Form 1040)).
(or loss) can be entered under the NAV column (a).
method. You received a Form 1099-B or 1099-S
Column (b)—Date Acquired (or substitute statement). If you
Nondividend distributions.
Distributions from a corporation with Enter in this column the date you acquired received a Form 1099-B or 1099-S (or
respect to its stock that are a return of your the property. Enter the trade date for substitute statement) for a transaction,
cost (or other basis) aren’t taxed until you stocks and bonds you purchased on an enter in column (d) the proceeds shown
recover your cost (or other basis), exchange or over-the-counter market. For on the form or statement you received. If
determined on a share-by-share basis. a short sale, enter the date you acquired there are any selling expenses or option
Reduce your cost (or other basis) in a the property delivered to the broker or premiums that aren't reflected on the form
share by the distributions allocable to such lender to close the short sale. For property or statement you received (by an
share. After you have recovered your you previously elected to treat as having adjustment to either the proceeds or basis
entire cost (or other basis) in a share, any been sold and reacquired on January 1, shown), enter “E” in column (f) and the
later nondividend distribution allocable to 2001 (or January 2, 2001, for readily necessary adjustment in column (g). See
that share is taxable as a capital gain. tradable stock), enter the date of the the example under Column (g)—Amount
Enter the name of the payer of any taxable deemed sale and reacquisition. of Adjustment, later.
nondividend distributions in column (a) on If you received a Form 1099-B (or If the proceeds you received were
a Part I with box C checked or Part II with substitute statement), box 1b may help more than shown on Form 1099-B or
box F checked (depending on how long you determine when you acquired the 1099-S (or substitute statement), enter the
you held the stock). Enter the taxable part property. correct proceeds in column (d). This might
happen if, for example, box 4 on Form
of the distribution in columns (d) and (h). Inherited property. Generally, if you 1099-S is checked.
Each payer of a nondividend distribution disposed of property that you acquired by
should send you a Form 1099-DIV inheritance, report the sale or exchange You shouldn't have received a Form
showing the amount of the distribution in on a Part II with the appropriate box 1099-B (or substitute statement) for a
box 3. checked (D, E, or F). Enter “INHERITED” transaction merely representing the return
Dispositions of depreciable property in column (b). of your original investment in a
nontransferable obligation, such as a
not used in a trade or business. Report Stock acquired on various dates. If you savings bond or a certificate of deposit.
on Form 8949 a loss from the sale or sold a block of stock (or similar property) But if you did, report the proceeds shown
exchange of depreciable property not that you acquired through several different on Form 1099-B (or substitute statement)
used in a trade or business but held for purchases, you may report the sale on one in both columns (d) and (e).
investment or for use in a not for profit ‐ ‐ row and enter “VARIOUS” in column (b).
activity. If you have a gain from the sale of However, you must still report the Column (e)—Cost or Other
such property, see Disposition of short-term gain (or loss) on the sale on Basis
Depreciable Property Not Used in Trade Part I and the long-term gain (or loss) on The basis of property you buy is usually its
or Business in the Form 4797 instructions. Part II. cost, including the purchase price and any
Other gains (or losses) where sales costs of purchase, such as commissions.
price or basis isn't known. If you have Column (c)—Date Sold or
You may not be able to use the actual cost
another gain (or loss) for which you don't Disposed Of as the basis if you inherited the property,
know the sales price or basis (such as a Enter in this column the date you sold or got it as a gift, or received it in a tax-free
long-term capital gain from Form 8621), disposed of the property. Use the trade exchange or involuntary conversion or in
enter a description of the gain (or loss) in date for stocks and bonds traded on an connection with a “wash sale.” If you don't
column (a) on a Part I with box C checked exchange or over-the-counter market. For use the actual cost, attach an explanation
or Part II with box F checked (depending a short sale, enter the date you delivered of your basis.
on how long you held the property). If you the property to the broker or lender to
have a gain, enter it in columns (d) and close the short sale. The basis of property acquired by gift is
generally the basis of the property in the
(h). If you have a loss, enter it in columns If you received a Form 1099-B (or hands of the donor. The basis of inherited
(e) and (h). Complete any other columns substitute statement), box 1c may help property is generally the fair market value
you can. you determine when you sold or disposed at the date of death. See Pub. 551 for
Column (a)—Description of of the property. details.
Property Column (d)—Proceeds (Sales If you sold property that you inherited
For stock, include the number of shares. Price) from someone who died in 2010 and the
You can use stock ticker symbols or Follow the instructions below that apply to executor made the election to file Form
abbreviations to describe the property as your transaction(s). 8939, see Pub. 4895.
long as they are based on the descriptions
You didn't receive a Form 1099-B or If you elected to recognize gain on
1099-S (or substitute statement). If you property held on January 1, 2001, your

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basis in the property is its closing market Form 1099-B and How To Complete Form the shareholder must reduce its basis in
price or fair market value, whichever 8949, Columns (f) and (g), later, for the the controlled foreign corporation stock in
applies, on the date of the deemed sale adjustment you must make if you received the amount of the dividend received, but
and reacquisition, whether the deemed a Form 1099-B (or substitute statement) not below zero.
sale resulted in a gain or an unallowed and the basis shown in box 1e is incorrect.
Average basis. You can use the average
loss.
Increase the cost or other basis of a basis method to determine the basis of
Schedule A to Form 8971—Consistent taxable OID debt instrument by the shares of stock if the shares are identical
basis reporting. If you received a amount of OID that you have included in to each other, you acquired them at
Schedule A to Form 8971 from an gross income for that instrument. See different prices and left them in an account
executor of an estate or other person Pub. 550 for details. with a custodian or agent, and either:
required to file an estate tax return and • They are shares in a mutual fund (or
you are a beneficiary who receives (or is Increase the cost or other basis of a other regulated investment company);
to receive) property from that estate, you tax-exempt OID debt instrument by the • They are shares you hold in connection
will be required to report a basis amount of tax-exempt OID that accrued on with a dividend reinvestment plan (DRP),
consistent with the final estate tax value of the debt instrument while held by you. See and all the shares you hold in connection
the property if Part 2, column C, of the Pub. 550 for details. with the DRP are treated as covered
Schedule A you received indicates that If you elect to currently include in securities (defined below); or
the property increased the estate tax income the market discount on a bond, • You acquired them after 2011 in
liability of the decedent. In this case, first increase the basis of the bond by the connection with a DRP.
use an amount that is equal to or less than market discount that has been included in Shares are identical if they have the same
the final estate tax value listed in Part 2, income for that bond. See Pub. 550 for CUSIP number, except that shares of
column E, of the Schedule A. This amount details. stock in a DRP aren't identical to shares of
is your initial basis in the property. You stock that aren't in a DRP, even if they
then adjust your initial basis in the If you elect to amortize bond premium have the same CUSIP number. (CUSIP
property, as described under Adjustments on a taxable bond, reduce the basis of the numbers are security identification
to basis, later. The resulting amount is bond by any bond premium amortization numbers.)
entered in column (e) of Form 8949. allowed as either an offset to interest If you are using the average basis
income or as a deduction for that bond. method and received a Form 1099-B (or
If you received a supplemental Reduce the basis of a tax-exempt bond by substitute statement) that shows an
TIP Schedule A to Form 8971, use the any bond premium amortization for that incorrect basis, enter “B” in column (f),
most recently dated supplemental bond. See Pub. 550 for details. enter the basis shown on Form 1099-B (or
Schedule A to determine your initial basis.
If a charitable contribution deduction is substitute statement) in column (e), and
Penalties for inconsistent basis allowable because of a bargain sale of see How To Complete Form 8949,
reporting. If you use an initial basis that property to a charitable organization, you Columns (f) and (g), later. For details on
is more than the amount listed in Part 2, must allocate your basis in the property making the election and figuring average
column E, of the Schedule A to figure your between the part sold and the part basis, see section 1012, Pub. 550, and
basis in the property and Part 2, column C, contributed based on the fair market value Regulations section 1.1012-1(e).
of the Schedule A indicates that the of each. See Pub. 544 for details. Form 1099-B. If the property you sold
property increased the estate tax liability was a covered security, its basis should
For compensatory options granted
of the decedent, you may be subject to a be shown in box 1e of the Form 1099-B
after 2013, the basis information reported
penalty equal to 20% of any resulting (or substitute statement) you received
to you on Form 1099-B (or substitute
underpayment of tax because the basis from your broker. Generally, a covered
statement) won’t reflect any amount you
reported isn’t consistent with the final security is any of the following.
included in income upon grant or exercise
estate tax value of the property. • Stock you acquired after 2010
of the option. Increase your basis by any
For more details, see Pub. 551; Pub. amount you included in income upon grant (generally after 2011, if in a mutual fund or
550; or the instructions for Form 8971 and or exercise of the option. For other regulated investment company, or
Schedule A, available at IRS.gov/ compensatory options granted before acquired through a DRP).
Form8971. 2014, any basis information reported to • Certain stock held in a mutual fund or in
Adjustments to basis. Before you can you on Form 1099-B (or substitute connection with a DRP for which a
figure any gain (or loss) on a sale, statement) may or may not reflect any single-account election is in effect.
exchange, or other disposition of property, amount you included in income upon grant • Certain debt instruments you acquired
you must usually make certain or exercise of the option; therefore, the after 2013.
adjustments (increases and decreases) to basis may need to be adjusted. If the basis • Certain options, warrants, and stock
the basis of the property. Increase the information reported to you on Form rights you granted or acquired after 2013.
basis of your property by capital 1099-B (or substitute statement) doesn’t • A securities future contract you entered
improvements. Decrease it by reflect an amount you included in income into after 2013.
depreciation, amortization, and depletion. upon grant or exercise of the option, • Variable rate debt instruments acquired
Other adjustments may be necessary for increase your basis by the amount you after 2015.
your property. See Pub. 551 for more included in income upon grant or exercise • Inflation-indexed debt instruments
information. of the option. See Pub. 525 for more acquired after 2015.
information. • Contingent payment debt instruments
If you sold shares of stock, adjust your acquired after 2015.
basis in each share, but not below zero, by Solely for purposes of calculating a • Convertible debt instruments acquired
subtracting all the nondividend loss on the sale of the stock of a specified after 2015.
distributions allocable to such shares that 10%-owned foreign corporation, if a • Options on debt instruments with
were received before the sale and that corporate shareholder received an actual payments denominated in (or determined
reduced your cost (or other basis) in such or constructive dividend after December by reference to) a currency other than the
shares. Also, adjust your basis for any 31, 2017, and that dividend qualified for
stock splits. See Pub. 550 for details. See the 100% dividends-received deduction,

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U.S. dollar and granted or acquired after   Columns (f) and (g), later, for further     column (g). For example, if one 
2015.                                       information about how to report the correct adjustment is $5,000 and another is 
•   Options issued as part of investment    basis.                                      ($1,000), enter $4,000 ($5,000 − $1,000).
units and granted or acquired after 2015.                                               Example. You sold your main home in 
                                            Column (f)—Code
    For more information on covered                                                     2022 for $320,000 and received a Form 
securities, see section 6045(g) and         In order to explain any adjustment to gain  1099-S showing the $320,000 gross 
Regulations section 1.6045-1.               (or loss) in column (g), enter the          proceeds. The home's basis was 
                                            appropriate code(s) in column (f). See      $100,000. You had selling expenses of 
    For covered securities, enter the basis How To Complete Form 8949, Columns (f)      $20,000 that weren’t included on your 
shown on Form 1099-B (or substitute         and (g), later. If more than one code       Form 1099-S. Under the tests described in 
statement) in column (e). If the basis      applies, enter all the codes that apply in  Sale of Your Home in the Instructions for 
shown on Form 1099-B (or substitute         alphabetical order (for example, “BOQ”).    Schedule D (Form 1040), you can exclude 
statement) isn’t correct, see How To        Don't separate the codes by a space or      the entire $200,000 gain from income. On 
Complete Form 8949, Columns (f) and (g),    comma.                                      Form 8949, Part II, check box F at the top. 
later, for the adjustment you must make.
    If box 5 of Form 1099-B (or substitute  Column (g)—Amount of                        Complete columns (a), (b), and (c). Enter 
statement) is checked, the property sold    Adjustment                                  $320,000 in column (d) and $100,000 in 
                                                                                        column (e). Enter “EH” in column (f). In 
wasn't a covered security.                  Enter in this column any necessary          column (g), enter $220,000 ($20,000 
    For noncovered securities, enter the    adjustments to gain (or loss). Enter        selling expenses + $200,000 exclusion) as 
correct basis of the property in column (e) negative amounts in parentheses. Also,      a negative number. Put it in parentheses 
if:                                         enter a code in column (f) to explain the   to show it is negative. In column (h), 
•   No basis is shown on Form 1099-B (or    adjustment. See How To Complete Form        enter -0- ($320,000 − $100,000 − 
substitute statement), or                   8949, Columns (f) and (g), later.           $220,000). If this is your only transaction 
•   The basis shown wasn't reported to the                                              on this Part II, enter $320,000 in column 
IRS.                                        More than one code.   If you entered        (d) on line 10 of Schedule D (Form 1040), 
If the basis shown wasn’t reported to the   more than one code in column (f) on the     $100,000 in column (e), ($220,000) in 
IRS, see How To Complete Form 8949,         same row, enter the net adjustment in       column (g), and -0- in column (h).

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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
incorrect Part II with box E checked at the top, enter the correct
basis in column (e), and enter -0- in column (g).
• If this transaction is reported on a Part I with box A
checked at the top or if this transaction is reported on a
Part II with box D checked at the top, enter the basis shown
B
on Form 1099-B (or substitute statement) in column (e),
even though that basis is incorrect. Correct the error by
entering an adjustment in column (g). To figure the
adjustment needed, see the Worksheet for Basis
Adjustments in Column (g), later. Also, see
Example 4—Adjustment for incorrect basis in the
instructions for column (h), later.
You received a Form 1099-B (or substitute Report the transaction on the correct part of Form 8949,
statement) and the type of gain (or loss) 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).
N As a result of this adjustment, the amount in column (h)
should be zero. However, if you received capital gain
distributions as a nominee, report them instead, as
described under Capital Gain Distributions in the
Instructions for Schedule D (Form 1040).
You sold or exchanged your main home at Report the sale or exchange on Form 8949 as you would if
a gain, must report the sale or exchange on you weren't taking the exclusion. Then enter the amount of
Part II of Form 8949 (as explained in Sale of excluded (nontaxable) gain as a negative number (in
H
Your Home in the Instructions for parentheses) in column (g). See the example in the
Schedule D (Form 1040)), 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).

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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 have an adjustment not explained                              Enter the appropriate adjustment amount in column (g). 
                                             O
earlier in this column                                            See the instructions for column (g).
You are electing to postpone all or part of                       See How To Report an Election To Defer Tax on Eligible 
your gain under the rules explained in the                        Gain Invested in a QOF, later.
                                             Z
Schedule D instructions for investments in 
QOFs
You are reporting your gain from a QOF                            See How To Report Gain Previously Deferred in a QOF 
investment that you deferred in a prior tax  Y                    Investment, later.
year
None of the other statements in this column  Leave columns (f) and (g) blank.
apply

Column (h)—Gain (or Loss)                    months. Your correct basis for the stock is  assets to exchange your unit of digital 
Figure gain (or loss) on each row. First,    $100, but you receive a Form 1099-B that     asset A for one unit of digital asset B with 
subtract the cost or other basis in column   shows your basis is $900 and shows your      a fair market value of $3,000. You must 
(e) from the proceeds (sales price) in       broker reported that basis to the IRS.       report a long-term capital gain of $2,000.
column (d). Then take into account any       Enter $900 on line 1 of the Worksheet for    Example 6—Digital asset.       You are a 
adjustments in column (g). Enter the gain    Basis Adjustments in Column (g), later.      self-employed attorney who performs 
(or loss) in column (h). Enter negative      Enter $100 on line 2 of the worksheet.       legal services for a client. The client gives 
amounts in parentheses.                      Because line 1 is larger than line 2, leave  you one unit of digital asset A as payment 
                                             line 3 blank and enter $800 ($900 − $100)    for services. At the time of the payment, 
Example 1—Gain.         Column (d) is        as a positive number on line 4. Also, enter  the fair market value of one unit of digital 
$6,000 and column (e) is $2,000. Enter       $800 in column (g) of a Part I with box A    asset A is $10,000. You report $10,000 in 
$4,000 in column (h).                        checked at the top. Enter “B” in column (f). self-employment income (the fair market 
Example 2—Loss.         Column (d) is        Enter $1,000 in column (d) and $900 in       value of one unit of digital asset A). Two 
$6,000 and column (e) is $8,000. Enter       column (e). To figure your gain (or loss),   months later, when the fair market value of 
($2,000) in column (h).                      subtract $900 from $1,000. Combine the       one unit of digital asset A is $12,000, you 
                                             result, $100, with the $800 adjustment in    decide to sell it. You must report a 
Example 3—Adjustment.      Column (d)        column (g). Your gain is $900 ($100 +        short-term capital gain of $2,000, which is 
is $6,000, column (e) is $2,000, and         $800). Enter $900 in column (h).             the difference between the sales price 
column (g) is ($1,000). Enter $3,000 in 
column (h).                                  Example 5—Digital asset.    You              ($12,000) and your basis in one unit of 
                                             purchased one unit of digital asset A on     digital asset A ($10,000).
Example 4—Adjustment for                     June 1, 2019, for $1,000. On June 1, 
incorrect basis.  You sold stock for         2022, you use a platform for trading digital 
$1,000. You had owned the stock for 3 

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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.                   

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                                     eligible gain on the form and in the manner                                   being deferred is short term or long term). 
                                                                 otherwise instructed. For example,                                            If you made multiple investments in 
Defer Tax on Eligible Gain 
                                                                 individual taxpayers would report gain                                        different QOFs or in the same QOF on 
Invested in a Qualified                                          from the sale of stock on Form 8949 and                                       different dates, use a separate row for 
Opportunity Fund (QOF)                                           Schedule D (Form 1040). If the gain is                                        each investment. If you invested eligible 
                                                                 reported on Form 8949, do not make any                                        gains of the same character (but from 
    For more information on QOFs,                                adjustments for the deferral in column (g).                                   different transactions) on the same date 
TIP see Pub. 544.                                                                                                                              into the same QOF, you can group those 
                                                                       Report the deferral of the eligible gain 
If you elect to defer tax on an eligible                         on its own row of Form 8949 in Part I with                                    investments on the same row. In column 
gain by investing in a QOF, report the                           box C checked or Part II with box F                                           (a), enter only the employer identification 
                                                                 checked (depending on whether the gain                                        number (EIN) of the QOF into which you 

Instructions for Form 8949 (2022)                                                                  -11-

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invested. In column (b), enter the date you     from installment sales and like-kind         "Y" in column (f), and enter the amount of 
invested in the QOF. Leave columns (c),         exchanges, by investing in a QOF must        previously deferred gain as a positive 
(d), and (e) blank. Enter code “Z” in           report the deferral election on Form 8949    number in column (g).
column (f) and the amount of the deferred       in the tax year of the deferral. Likewise, 
gain as a negative number (in                   taxpayers selling or exchanging a QOF        How To Report Gain Previously 
parentheses) in column (g).                     investment must report the inclusion of the  Deferred in a QOF Investment
Your investment in a QOF can be used            eligible gain on Form 8949.                  If you sold or exchanged your investment 
to defer only long-term gain, only              Reporting the deferral election.    Each     in a QOF during the tax year, you must 
short-term gain, or a combination of both       QOF investment of section 1231 gains will    report the amount of eligible gain that you 
short-term and long-term gain. You do not       use two separate rows in Part I (short-term  previously deferred and that you are now 
need to trace or allocate the funds             transactions) or Part II (long-term          recognizing. Report the gain from each 
invested in a QOF to the specific gain          transactions), as applicable, of Form        investment on its own row. Check box C in 
being deferred, but the investment in the       8949.                                        Part I or check box F in Part II depending 
QOF must have occurred within the                                                            on whether the gain is short term or long 
180-day period beginning on the date the        • For the first row, in column (a), write    term. The gain you recognize will be the 
deferred gain was realized. If you realized     “QOF INVESTMENT FROM FORM 4797.”             same character as the gain you deferred. 
both short-term and long-term gains             Leave columns (b) through (g) blank. In      Put the EIN of the QOF investment you are 
during the 180-day period, you can              column (h), report the amount of the QOF     selling in column (a). Complete columns 
choose how much of each gain to defer by        investment from Form 4797 as a positive      (b), (c), (d), and (e). Enter code "Y" in 
reporting the deferral in Part I or Part II, as number. For example, if ($75,000) was        column (f), and enter the amount of 
applicable. The character of the eligible       reported in column (g) of Form 4797,         previously deferred gain as a positive 
gain will survive the investment in the         report $75,000 in column (h) of Form         number in column (g).
QOF. When you recognize the eligible            8949.                                            If you disposed of your investment 
gain (either when you sell or exchange or       • For the second row, in column (a), enter   TIP in a QOF, you will also need to 
otherwise dispose of your investment in         only the EIN of the QOF investment. In           complete Form 8997. See the 
the QOF or December 31, 2026,                   column (b), enter the date of the QOF        instructions for Form 8997 for more 
whichever is earlier), the gain you             investment. Leave columns (c), (d), and      information.
recognize will be the same character as         (e) blank. Enter code “Z” in column (f) and 
the gain you deferred.                          the amount of the deferred gain as a 
    If you are attaching multiple Forms         negative number (in parentheses) in          Line 2
TIP 8949 to your return, attach the             column (g).                                  The total of the amounts in column (h) of 
    Form(s) 8949 that lists code "Z" in         Reporting the inclusion. Each inclusion      line 2 of all your Forms 8949 should equal 
column (f) first.                               will use two separate rows in Part I or Part the amount you get by combining columns 
                                                II, as applicable.                           (d), (e), and (g) on the corresponding line 
    If you elect to defer tax on an                                                          of Schedule D (Form 1040). For example, 
TIP eligible gain by investing in a             • For the first row, in column (a), write    the total of the amounts in column (h) of 
    QOF, you will need to complete a            “QOF INCLUSION EVENT FROM                    line 2 of all your Forms 8949 with box A 
Form 8997 for each year you hold the            SECTION 1231 GAINS.” Leave columns           checked should equal the amount you get 
investment and for the year you dispose of      (b) through (g) blank. In column (h), report by combining columns (d), (e), and (g) on 
the investment. See the instructions for        the amount of the included section 1231      line 1b of Schedule D. The total of the 
Form 8997 for more information.                 gains from Form 4797 as a negative           amounts in column (h) of line 2 of all your 
                                                number (in parentheses). For example, if     Forms 8949 with box E checked should 
                                                $75,000 was reported in column (g) of        equal the amount you get by combining 
How To Report Eligible Gains                    Form 4797, report ($75,000) in column (h)    columns (d), (e), and (g) on line 9 of 
From Section 1231 Property                      of Form 8949.                                Schedule D.
                                                • For the second row, enter the EIN of the 
Taxpayers deferring eligible gains from         QOF investment in column (a). Complete 
section 1231 property, including gains          columns (b), (c), (d), and (e). Enter code 

                                                                   -12-                      Instructions for Form 8949 (2022)

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