Do I need to complete Form 8949 if my broker already reported my sales on a 1099-B?

Generally yes, but tax software handles this automatically. You must report all capital asset sales on Form 8949, even if your broker reported them on Form 1099-B. However, for sales where basis is reported to the IRS (Box A or Box D covered transactions with correct basis), you may be able to use a summary method — listing the totals from your 1099-B directly on Schedule D without itemising every transaction on Form 8949. Your tax software determines the correct reporting method based on your 1099-B codes. If any transactions require adjustments (wash sale losses, incorrect basis), they must appear on Form 8949.

What is the difference between short-term and long-term on Form 8949?

Short-term capital gains (assets held one year or less) and long-term capital gains (assets held more than one year) are reported in separate sections of Form 8949. Part I covers short-term transactions; Part II covers long-term transactions. The distinction matters because short-term gains are taxed at ordinary income tax rates (up to 37%) while long-term gains are taxed at preferential rates of 0%, 15%, or 20% depending on your income. Each section transfers to the corresponding part of Schedule D (Part I for short-term, Part II for long-term).

How do I handle a wash sale on Form 8949?

If you sold a security at a loss and repurchased the same or substantially identical security within 30 days before or after the sale, the loss is disallowed under the wash sale rule. On Form 8949, enter code W in column (f) and enter the disallowed loss amount as a positive number in column (g) as an adjustment. The disallowed loss increases your basis in the replacement shares — it is not permanently lost, just deferred. Your brokerage typically identifies wash sales on your 1099-B, but you should verify the reporting, especially for sales across multiple accounts.

What if I have too many transactions to list individually on Form 8949?

If you have hundreds of transactions, you can use a summary approach: attach a statement listing each transaction to your return (paper or digital), and enter the column totals on Form 8949. Tax software can generate this automatically. Alternatively, for covered transactions (where the broker reported basis to the IRS) with no adjustments needed, you may enter only the totals on Schedule D directly without Form 8949, provided you check the appropriate box to indicate you can provide backup. For non-covered transactions (where basis was not reported), you must list each transaction separately or attach a detailed statement.

Form 8949 and Schedule D 2026 — How to Report Capital Gains on Your Tax Return

When you sell stocks, ETFs, mutual funds, cryptocurrency, real estate, or other capital assets during 2026, you must report those transactions to the IRS. Form 8949 is where you list each individual sale — the asset, dates, proceeds, cost basis, and gain or loss. Schedule D summarises the totals from Form 8949 into short-term and long-term gains and losses, calculates your net capital gain or loss, and feeds the final number into your Form 1040. Tax software handles most of this automatically once you import your broker’s 1099-B data — but understanding the forms helps you spot errors and make smart year-end tax decisions.

Quick answer: Sell investments in 2026? Report each sale on Form 8949 (itemise) → total carries to Schedule D (summary) → Schedule D total goes on Form 1040. Short-term (≤1 year) gains taxed as ordinary income; long-term (>1 year) gains taxed at 0%/15%/20%. Covered transactions (basis reported to IRS) may use summary method. Wash sales, incorrect basis, inherited assets require adjustments on Form 8949.

Form 8949: What Gets Reported

Reportable transactions include:

Sale or exchange of stocks, bonds, mutual funds, ETFs
Sale of cryptocurrency (Bitcoin, Ethereum, etc.)
Sale of real property (unless excluded by primary residence rules)
Distributions from mutual funds taxed as capital gains
Options exercises and expirations
Bartering of capital assets

Not reported on Form 8949:

Qualified opportunity fund investments (reported on Form 8997)
Certain installment sales (Form 6252)
Like-kind exchanges (Form 8824)

Understanding Covered vs Non-Covered Transactions

Your brokerage’s Form 1099-B uses covered and non-covered designations that determine how you report on Form 8949:

Transaction Type	Definition	Form 8949 Box
Box A — Short-term covered	Broker reported basis to IRS; held ≤1 year	Check Box A
Box B — Short-term non-covered	Broker did NOT report basis to IRS; held ≤1 year	Check Box B
Box C — Short-term other	Transactions not reported on 1099-B; held ≤1 year	Check Box C
Box D — Long-term covered	Broker reported basis to IRS; held >1 year	Check Box D
Box E — Long-term non-covered	Broker did NOT report basis to IRS; held >1 year	Check Box E
Box F — Long-term other	Not on 1099-B; held >1 year	Check Box F

For covered transactions with no adjustments (Box A or Box D), you may summarise the totals directly on Schedule D without itemising each transaction on Form 8949.

Completing Form 8949: Column by Column

Column	What to Enter
(a) Description	Name of asset (e.g., “100 shares AAPL”)
(b) Date acquired	Date you purchased the asset (MM/DD/YYYY)
(c) Date sold	Date of sale or disposition
(d) Proceeds	Sale price (from 1099-B Box 1d)
(e) Cost or other basis	Your purchase price including commissions (from 1099-B Box 1e)
(f) Code(s)	Adjustment codes (see table below)
(g) Adjustment	Dollar amount of adjustment (if applicable)
(h) Gain or (loss)	Column (d) − Column (e) ± Column (g)

Common Form 8949 adjustment codes:

Code	Situation
B	Basis not reported to IRS — you are providing it
W	Wash sale loss disallowed
H	Long-term gain on collectibles
M	Ordinary income portion of gain on qualified small business stock
O	Other adjustments (e.g., inherited asset basis correction)

Schedule D: Summarising Gains and Losses

After completing Form 8949, totals flow to Schedule D:

Part I (Short-term):

Lines 1a-1c: Summary of Box A, B, and C transactions
Line 7: Net short-term gain or (loss)

Part II (Long-term):

Lines 8a-8c: Summary of Box D, E, and F transactions
Lines 11-12: Unrecaptured Section 1250 gain (rental depreciation); 28% rate gain (collectibles)
Line 15: Net long-term gain or (loss)

Part III: Summary:

Line 16: Net capital gain or loss (combines Parts I and II)
Line 17: If net loss, deduct up to $3,000 against ordinary income; remainder carries forward

Key Capital Gains Tax Rates for 2026

Rate	Short-Term (ordinary rates)	Long-Term Single	Long-Term MFJ
0%	N/A	$0 – $48,350	$0 – $96,700
15%	N/A	$48,351 – $533,400	$96,701 – $600,050
20%	N/A	Over $533,400	Over $600,050
Ordinary income rates	Taxed at 10-37%	—	—

Additionally, the Net Investment Income Tax (NIIT) of 3.8% applies to investment income (including capital gains) for taxpayers with MAGI over $200,000 (single) or $250,000 (MFJ).

Worked Example: Simple Portfolio Sale

Facts: You sold 200 shares of a stock in 2026 at $85/share ($17,000 proceeds). You bought them in 2020 at $35/share ($7,000 cost basis). You held more than 1 year.

Form 8949 entries (Part II — long-term):

(a): 200 shares XYZ Corp
(b): 03/15/2020
(c): 09/10/2026
(d): $17,000
(e): $7,000
(f): [blank — no adjustment needed]
(g): $0
(h): $10,000 gain

Schedule D Part II: $10,000 long-term gain Tax (15% rate, assuming income $100,000 MFJ): $10,000 × 15% = $1,500

Inherited Assets: Special Basis Rules

For assets inherited from a decedent, the cost basis “steps up” to the fair market value at the date of death. On Form 8949:

Enter “INHERITED” in column (b) for date acquired
Use the estate’s stepped-up FMV as your cost basis in column (e)
The holding period is automatically long-term regardless of how long you held the asset after inheriting it

Cryptocurrency Reporting

Cryptocurrency is treated as property by the IRS. Every sale, trade, or use of crypto to pay for goods or services is a taxable event requiring Form 8949 reporting. Crypto exchanges issue 1099-DAs (starting 2025 for some) or 1099-Bs. Key points:

Each transaction is its own line on Form 8949
Cost basis methods include FIFO, specific identification, or HIFO (highest cost first — reduces current gains)
Crypto-to-crypto trades are taxable (you must recognize gain/loss when trading Bitcoin for Ethereum)

Capital Loss Carryover — how unused capital losses carry to future years
Wash Sale Rule Guide — what triggers the wash sale and how to avoid it
Qualified Dividends Tax Rate — lower rates on qualified dividends
US Taxes Hub — all federal tax guides for 2026

Tax software (TurboTax, H&R Block, FreeTaxUSA) imports 1099-B data directly from most brokers and automatically populates Form 8949 and Schedule D. Manual entry is rarely needed — but reviewing the output for wash sales, incorrect basis, and inherited assets before filing is always worthwhile.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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