Accounting 3020: Solved Form 8949 for Capital Gains & Losses

This document presents a solved Form 8949, which is used to report capital gains and losses from the sale or exchange of capital assets. The form is divided into two parts: Part I for short-term transactions (assets held for one year or less) and Part II for long-term transactions (assets held for more than one year). The example includes transactions involving the sale of XYZ Corporation shares (short-term) and MNO Corporation shares and inherited land (long-term). The document demonstrates how to calculate the gain or loss for each transaction, taking into account the proceeds from the sale, the cost basis of the asset, and any adjustments. The totals from each part are then calculated and would be reported on Schedule D of Form 1040. The assignment is related to Accounting 3020 and the Summer 2018 semester.

Form 8949
Department of the Treasury
Internal Revenue Service
Sales and Other Dispositions of Capital Assets
▶ Go to www.irs.gov/Form8949 for instructions and the latest information.
▶ File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.
OMB No. 1545-0074
2017Attachment
Sequence No.12A
Name(s) shown on return Social security number or taxpayer identification number
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by y
broker and may even tell you which box to check.
Part I Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term
transactions, see page 2.
Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was
reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on
Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions).
You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions,
complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this p
for one or more of the boxes, complete as many forms with the same box checked as you need.
(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
(C) Short-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
(b)
Date acquired
(Mo., day, yr.)
(c)
Date sold or
disposed of
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
(e)
Cost or other basis.
See the Note below
and see Column (e)
in the separate
instructions
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
enter a code in column (f).
See the separate instructions.
(f)
Code(s) from
instructions
(g)
Amount of
adjustment
(h)
Gain or (loss).
Subtract column (e)
from column (d) and
combine the result
with column (g)
2Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 1b (if Box A above is checked), line 2 (if Box B
above is checked), or line 3 (if Box C above is checked)▶
Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and ent
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949(2017)
✔
450 Shares of XYZ Corporation 02,05,201711,20,2017 6750 3600 3150
6750 3600 3150

Form 8949 (2017) Attachment Sequence No.12A Page 2
Name(s) shown on return.Name and SSN or taxpayer identification no. not required if shown on other sideSocial security number or taxpayer identification number
Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by y
broker and may even tell you which box to check.
Part II Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-ter
transactions, see page 1.
Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was repo
to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, lin
8a; you aren't required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, c
a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for on
more of the boxes, complete as many forms with the same box checked as you need.
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
(F) Long-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
(b)
Date acquired
(Mo., day, yr.)
(c)
Date sold or
disposed of
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
(e)
Cost or other basis.
See the Note below
and see Column (e)
in the separate
instructions
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
enter a code in column (f).
See the separate instructions.
(f)
Code(s) from
instructions
(g)
Amount of
adjustment
(h)
Gain or (loss).
Subtract column (e)
from column (d) and
combine the result
with column (g)
2Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 8b (if Box D above is checked), line 9 (if Box E
above is checked), or line 10 (if Box F above is checked)▶
Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and ent
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Form 8949(2017)
✔
500 Shares of MNO Corporation03,21,201111,20,2017 2550 2750 (200)
Land Inherited 12,15,2017 22000 19500 2500
24550 22250 2300