Fill out Form 8949 Online in 2024

Frequently asked questions

• How to fill out form 8949 for cryptocurrency?

  

  When filling out Form 8949 for cryptocurrency transactions, you must report each transaction separately. This includes the sale, exchange, or disposal of cryptocurrency. For each transaction, you need to provide the date of acquisition, the date of the sale or exchange, the cost basis (what you originally paid for the cryptocurrency), the sales proceeds (what you sold it for), and the gain or loss from the transaction. You should also indicate whether it's a short-term or long-term gain or loss based on how long you held the cryptocurrency before selling it.

• How to fill out form 8949 for sale of home?

  

  To fill out Form 8949 for the sale of a home, you need to list the date you acquired the home, the date you sold it, the sales price, and the cost basis, which includes the purchase price plus any improvements you made to the property. You'll also calculate the gain or loss by subtracting the cost basis from the sales price. If you're eligible for the home sale exclusion, you might not have to pay tax on some or all of the gain. Make sure to check the current IRS guidelines to see if you qualify for this exclusion.

• What is reported on form 8949?

  

  Form 8949 is used to report sales and exchanges of capital assets, including stocks, bonds, real estate, and other property. Each transaction must be listed individually, detailing the dates of acquisition and sale, the cost basis, the sales proceeds, and the gain or loss. Form 8949 helps taxpayers calculate their capital gains or losses, which are then summarized on Schedule D (Form 1040) and included in their income tax return.

• In what circumstance would form 8949 not have to be filed?

  

  Form 8949 may not have to be filed if all capital gain or loss transactions are reported directly on Schedule D (Form 1040) and the transactions have been reported to the IRS on Form 1099-B with the correct basis. This typically applies when brokerage firms report the sale of stocks or bonds with the cost basis directly to the IRS. However, if any adjustments are needed or if the cost basis was not reported to the IRS, then Form 8949 must be filled out to provide detailed information about each transaction.

• What is the difference between form 4797 and form 8949?

  

  The difference between Form 4797 and Form 8949 lies in the type of property being reported and the nature of the gain or loss. Form 4797 is used to report the sale or exchange of business property, including real estate used in a trade or business, and typically involves gains or losses that are part of a business's ordinary income. Form 8949, on the other hand, is used to report sales and exchanges of capital assets, such as stocks, bonds, and personal property, and focuses on capital gains or losses. The type of form used depends on the nature of the asset and how it was used.