Take a moment to review what has been covered in this lesson so far.
You learned how to identify the asset's holding period, adjusted basis, net short-term and long-term capital gains or losses, the taxable gain or deductible loss, and the amount of capital loss carryover.
In most cases, taxpayers must use Form 8949 and Schedule D to report capital gains and losses on the sale of assets such as the sale of stock.
Completion of Form 8949 and Schedule D requires information from Form 1099-B and Form 1099-DIV or a 1099 Consolidated Statement and from taxpayer records. Form 8949 contains most capital gain and loss transactions. The subtotals from Form 8949 are carried over to Schedule D where the gain or loss is calculated in aggregate.
A taxpayer who is carrying over a loss from a previous year must also provide information from the prior year's tax return in order to compute the carryover amount.