Form 8949, Sales and Other Dispositions of Capital Assets

In 2011, Form 8949, Sales and Other Dispositions of Capital Assets, replaces Schedule D-1 for reporting information from Form 1099-B. Schedule D was revised to allow for entries from the new Form 8949 and changes made to Form 1099-B.

All capital gains and losses are detailed on Form 8949; none are reported directly on Schedule D. The subtotals from Form 8949 are carried over to Schedule D, where aggregate gain or loss is calculated. Short- and long-term transactions are listed by the following categories:

• Transactions reported on Form 1099-B that show basis in box 3
• Transactions reported on Form 1099-B that do not show basis in box 3
• Transactions not reported on Form 1099-B

All entries are made on the Capital Gain or Loss Transactions Worksheet. The software determines the holding period, calculates the net capital gain or deductible loss, and carries the information to Form 8949 and Schedule D.