Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss Workout

Form 8949 and Schedule D

Case Study 3: Form 8949 and Schedule D

On August 12, 2011, Tess bought 200 shares of XYZ Company for $1,500.

On October 1, 2012, she bought 500 shares of TUV, Inc. for $8,000.

On November 18, 2012, she bought 2,000 shares of QRS, Inc. for $5,000.

Each amount includes the commission.

On January 10, 2021, Tess sold the stock in XYZ and TUV. The Form 1099-B from her broker reported gross proceeds of $1,875 for the XYZ stock, and $6,000 for TUV. Tess paid commissions of $35 for selling the XYZ shares, and $40 for selling TUV. Form 1099-B, Box 1e does not show basis.

On May 27, 2021, Tess sold the QRS stock for $10,000. She paid a $50 commission. Her broker reported sales price less commissions (net proceeds) of $9,950 on Form 1099-B, and Box 1e does not show basis.

How would Tess report these gains and losses on Form 8949 and Schedule D?

Click here for an explanation.