A Simple Guide to IRS Form 8949 for Reporting Capital Gains & Losses
🧾 What Is IRS Form 8949? Form 8949 is used by individuals, trusts, and businesses to report capital gains and losses from investments. If you've sold stocks, bonds, real estate, or other capital assets, this form helps summarize those transactions for the IRS. 🧠 Why It Matters Every time you sell an asset, you may realize a gain or a loss. The IRS requires you to report these outcomes, and Form 8949 allows you to provide the specific details—like the date you bought and sold, how much you paid, and what you received. Form 8949 works in conjunction with Schedule D, which calculates the overall gain or loss for the tax year. 📊 Who Needs to File It? You likely need to complete Form 8949 if: You sold a stock, bond, or mutual fund You received a Form 1099-B with an adjustment code You sold real estate (excluding your primary residence under certain conditions) You had digital asset transactions (e.g., cryptocurrency sales) You received investments via inheritanc...