Selling stocks, bonds, cryptocurrency, real estate, or other capital assets can create a tax reporting requirement that is easy to get wrong. IRS Form 8949 is the form taxpayers use to report many sales and exchanges of capital assets and reconcile transaction information reported by brokers and other information statements. 

Form 8949 is generally filed with Schedule D, which summarizes capital gains and losses for the tax return. The IRS says Form 8949 is used to reconcile information reported on Form 1099-B, Form 1099-DA, Form 1099-S, or substitute statements with the amounts reported on the tax return.  

There is also an important recent change for digital assets. The current IRS instructions introduce separate Form 8949 boxes for short-term and long-term digital asset transactions.  

This guide explains Form 8949 instructions 2026, how to fill out the form, how to report stock and cryptocurrency transactions, how Part I differs from Part II, and where to find the official Form 8949 PDF. 

Important: As of September 2026, the IRS’s forms database lists the 2025 Form 8949 and 2025 Form 8949 instructions as the latest posted versions. The 2025 instructions were posted in January 2026. If you are preparing a 2026 tax-year return, check IRS.gov/Form8949 for the 2026 revision when it becomes available.  

What Is IRS Form 8949? 

IRS Form 8949, Sales and Other Dispositions of Capital Assets, is used to report sales and exchanges of capital assets and calculate the gain or loss from those transactions.  

Capital assets can include: 

• Stocks  
• Bonds  
• Cryptocurrency and other digital assets  
• Certain investment property  
• Certain real estate  
• Other investment assets  

The form records important transaction details, including: 

• What was sold  
• When it was acquired  
• When it was sold  
• Sales proceeds  
• Cost or other basis  
• Adjustments  
• Resulting gain or loss  

The totals from Form 8949 generally flow to Schedule D, where capital gains and losses are combined and reported as part of the tax return.  

What Is Form 8949 Used For? 

Form 8949 is mainly used to report individual capital asset transactions and reconcile those transactions with information reported to the IRS.  

For example, you may need Form 8949 when you: 

• Sell shares of stock  
• Sell bonds  
• Exchange cryptocurrency  
• Sell an NFT  
• Sell certain investment property  
• Dispose of a capital asset that was not reported on another applicable form  
• Need to make an adjustment to the information reported by a broker  

The form helps show how your sales proceeds and cost basis produce a taxable gain or loss. 

Example 

Suppose you bought stock for $4,000 and later sold it for $7,000. 

Ignoring other adjustments: 

$7,000 proceeds − $4,000 basis = $3,000 gain 

Form 8949 records the transaction. The applicable total is then carried to Schedule D. 

Who Must File Form 8949? 

You generally use Form 8949 when you have a reportable sale or exchange of a capital asset that must be reported on your federal tax return.  

Common examples include taxpayers who sold: 

• Stocks  
• Bonds  
• Digital assets  
• Investment property  
• Other capital assets  

However, not every transaction requires a separate Form 8949 entry. 

The IRS provides exceptions for certain transactions reported on Form 1099-B or Form 1099-DA when the information is complete and no adjustments are required. In qualifying situations, those transactions can be reported directly on Schedule D.  

So the better question is not simply: 

“Did I sell an investment?” 

Instead ask: 

“Does this transaction need to be reported on Form 8949 under the IRS reporting rules?” 

Do You Always Need to File Form 8949? 

No, Certain transactions can be reported directly on Schedule D when they meet the IRS exception requirements.  

One important example is a transaction reported on Form 1099-B or Form 1099-DA where: 

• The basis was reported to the IRS, and  
• There are no adjustments that need to be reported.  

The IRS instructions explain that qualifying transactions can fall under an exception and be entered directly on Schedule D rather than Form 8949.  

Do not assume that receiving a Form 1099-B means you can always skip Form 8949. Check the information on the statement and the applicable IRS instructions. 

Form 8949 Instructions 2026: What Taxpayers Need to Know 

For taxpayers searching for Form 8949 instructions 2026, the IRS currently lists the 2025 revision as the latest posted Form 8949 instructions as of September 2026. The instructions were posted January 22, 2026.  

This matters because tax forms are tied to tax years. 

The IRS’s current instructions contain several important digital-asset reporting changes. 

New Digital Asset Boxes 

The current instructions add separate boxes for digital asset transactions. 

For short-term digital asset transactions, the instructions use: 

• G  
• H  
• I  

For long-term digital asset transactions, they use: 

• J  
• K  
• L  

The IRS specifically says not to use Box C for short-term digital asset transactions or Box F for long-term digital asset transactions.  

This is one of the most important details to check if you are reporting cryptocurrency transactions. 

Form 1099-DA Matters 

Beginning with transactions after 2025, digital asset broker reporting uses Form 1099-DA under the applicable reporting rules. The IRS’s 2026 Form 1099-DA instructions address gross-proceeds reporting and basis reporting for covered digital assets.  

If you receive Form 1099-DA, compare its information with your own transaction records before preparing Form 8949. 

How to Fill Out Form 8949 

To fill out Form 8949, first separate transactions by holding period and reporting category, then enter the property description, acquisition date, sale date, proceeds, basis, adjustments, and resulting gain or loss.  

The form has two main parts: 

• Part I: Short-term transactions  
• Part II: Long-term transactions  

Step 1: Determine Short-Term or Long-Term 

Part I is generally for assets held one year or less, while Part II is generally for assets held more than one year.  

The holding period can affect the tax treatment of the resulting gain or loss. 

For digital assets held as capital assets, the IRS similarly uses one year or less for short-term treatment and more than one year for long-term treatment.  

Step 2: Select the Correct Box 

Choose the box that matches how the transaction was reported and whether the transaction is short-term, long-term, and a digital asset transaction. 

For example, the current instructions include: 

The letters G through L apply to digital asset transactions under the current instructions.  

Do not choose a box based only on the type of investment. Check the information on your Form 1099-B, Form 1099-DA, or substitute statement. 

Step 3: Complete Column (a) 

Column (a) identifies the property that you sold or disposed of. 

For stock, include: 

• Company or security description  
• Number of shares 
• Ticker symbol or acceptable abbreviation  

For digital assets, the IRS instructions call for the asset name or abbreviation, the units sold or disposed of, and the transaction ID if available.  

Step 4: Enter the Acquisition Date in Column (b) 

Column (b) records when you acquired the asset. 

For stocks and bonds purchased on an exchange or over the counter, the IRS generally uses the trade date. 

If you inherited the property, special reporting applies. The instructions generally call for entering “INHERITED” in the acquisition-date column for inherited property.  

If you acquired identical property on different dates, additional rules may apply. 

Step 5: Enter the Sale Date in Column (c) 

Column (c) records the date you sold or otherwise disposed of the asset. 

For publicly traded stocks and bonds, use the trade date under the IRS instructions. 

Your Form 1099-B or Form 1099-DA can help verify the transaction date.  

Step 6: Enter Proceeds in Column (d) 

Column (d) reports the proceeds or sales price from the transaction. 

If you received Form 1099-B, Form 1099-DA, or Form 1099-S, the IRS instructions generally direct you to enter the proceeds shown on the applicable statement. 

If you did not receive one of these statements, the amount may need to be calculated using the transaction’s net proceeds.  

Do not automatically change the amount on your tax statement because it looks different from the amount you expected. First determine whether an adjustment belongs in the appropriate adjustment columns. 

Step 7: Enter Cost or Other Basis in Column (e) 

Column (e) contains the cost or other basis used to calculate your gain or loss. 

For covered securities, the basis shown on Form 1099-B or Form 1099-DA generally provides the starting point. 

If the reported basis is incorrect, you may need to make an adjustment using columns (f) and (g).  

Basis can be more complicated than the original purchase price. 

Depending on the asset and transaction, adjustments can arise from: 

• Certain corporate actions  
• Reinvested amounts  
• Wash sales  
• Fees or expenses  
• Inherited property  
• Other tax adjustments  

Keep records supporting the basis you report. 

Step 8: Complete Columns (f) and (g) When Required 

Columns (f) and (g) are used to report certain adjustments to the transaction. 

For many straightforward transactions, these columns remain blank. 

An adjustment may be necessary when: 

• Your broker reported incorrect basis.  
• You have a wash-sale adjustment.  
• You are excluding or postponing a gain.  
• Certain selling expenses need to be reflected.  
• Another IRS adjustment code applies.  

The IRS instructions provide specific codes and rules for these adjustments.  

Example 

Suppose: 

• Sales proceeds = $10,000  
• Reported basis = $6,000  
• Required adjustment = −$500  

The adjusted gain would be: 

$10,000 − $6,000 − $500 = $3,500 

The reason for the adjustment determines the correct code and treatment. 

Step 9: Calculate Gain or Loss in Column (h) 

Column (h) shows the final gain or loss after taking the applicable adjustment into account.  

The basic calculation is: 

Proceeds − Basis ± Adjustments = Gain or Loss 

For example: 

$12,000 − $7,000 = $5,000 gain 

If the basis is $15,000: 

$12,000 − $15,000 = $3,000 loss 

Losses should be shown as negative amounts according to the form’s instructions. 

How to Report Stock Sales on Form 8949 

Stock sales are generally reported on Form 8949 when they do not qualify for an applicable Schedule D exception. 

For each stock transaction, gather: 

• Form 1099-B  
• Purchase date  
• Sale date  
• Number of shares  
• Sales proceeds  
• Cost basis  
• Brokerage fees or other relevant adjustments  
• Any wash-sale information  

Example: Stock Sold for a Gain 

You purchase 100 shares for $5,000. 

Later, you sell all 100 shares for $8,000. 

Your basic gain is: 

$8,000 − $5,000 = $3,000 

You then report the transaction in the appropriate section of Form 8949 based on: 

• Holding period  
• Form 1099-B information  
• Whether basis was reported  
• Whether an adjustment is required  

The total from Form 8949 is then carried to Schedule D. 

How to Report Cryptocurrency on Form 8949 

When you sell, exchange, or otherwise dispose of a digital asset held as a capital asset, Form 8949 is generally used to report the resulting capital gain or loss, subject to the applicable reporting rules.  

The IRS treats digital assets as property for federal tax purposes. 

A taxable disposal can include: 

• Selling cryptocurrency for U.S. dollars  
• Exchanging one digital asset for another  
• Using digital assets to purchase goods or services  
• Certain other transfers or dispositions  

The IRS says taxable digital asset transactions must be reported even when the taxpayer does not receive a payee statement such as Form 1099.  

What Records Do You Need? 

For each digital asset transaction, keep records showing: 

• Type of digital asset  
• Date and time acquired  
• Date and time disposed of  
• Number of units  
• Value in U.S. dollars  
• Cost basis  
• Transaction details  
• Transaction ID, where available  

The IRS specifically recommends keeping records that establish the taxpayer’s position on the return.  

Example: Crypto-to-Crypto Exchange 

You purchase a digital asset for $2,000. 

Later, you exchange it for another digital asset worth $3,500. 

If the transaction is a taxable disposition, the basic capital gain is: 

$3,500 − $2,000 = $1,500 

The IRS’s current Form 8949 instructions provide a similar digital-asset exchange example and treat the transaction as a capital gain when the asset was held as a capital asset.  

Do Not Treat Every Crypto Transaction the Same Way 

Not every digital-asset transaction belongs on Form 8949. 

For example, the IRS distinguishes capital transactions from ordinary income such as certain income from mining, staking, rewards, or payment for services. The applicable form depends on the nature of the transaction.  

What Is Form 8949 Part I? 

Part I of Form 8949 is used for short-term capital asset transactions.  

Generally, this means assets held for one year or less. 

Examples include: 

• Stock bought in February and sold in November  
• A digital asset held for six months before disposal  
• Other capital assets held within the short-term holding period  

The applicable box at the top of Part I depends on how the transaction was reported. 

The current form includes separate boxes for short-term digital asset transactions. 

What Is Form 8949 Part II? 

Part II of Form 8949 is used for long-term capital asset transactions.  

Generally, an asset is long-term when it has been held for more than one year. 

For example, if you bought stock in March 2023 and sold it in June 2025, the transaction would generally fall into the long-term category, assuming no special holding-period rule changes the result. 

The applicable Part II box depends on the information statement and whether the transaction is a digital asset transaction. 

What Is the Difference Between Short-Term and Long-Term on Form 8949? 

Short-term transactions generally involve assets held for one year or less, while long-term transactions generally involve assets held for more than one year.  

The exact holding-period rules can vary for certain transactions, so do not determine the category based only on the calendar year. 

Form 8949 and Schedule D: How Do They Work Together? 

Form 8949 provides transaction-level details, while Schedule D summarizes capital gains and losses for the tax return.  

Think of the two forms this way: 

Form 8949 → individual transactions 

Schedule D → summary of capital gains and losses 

For example, suppose you have: 

• Stock gain: $4,000  
• Stock loss: $1,000  
• Crypto gain: $2,000  

Form 8949 contains the applicable transaction details. 

The resulting totals are then carried to Schedule D according to the applicable instructions. 

This is why the IRS instructs taxpayers to complete Form 8949 before completing certain Schedule D lines.  

For more information about another commonly used IRS tax document, see our guide to IRS Form 1099-DA. 

Form 8949 PDF: Where Can You Get It? 

The official IRS website is the safest source for the current Form 8949 PDF and instructions. 

The IRS’s current forms database lists: 

• Form 8949 — Sales and Other Dispositions of Capital Assets — 2025  
• Instructions for Form 8949 — 2025  

The instructions were posted on January 22, 2026.  

Get the official Form 8949 PDF from the IRS 

Read the official Form 8949 instructions 

Be careful when downloading a Form 8949 fillable PDF from third-party websites. An old or modified form may not match the current IRS revision. 

The IRS also maintains a prior-year forms page, which can help you locate older Form 8949 versions when preparing an amended or prior-year return.  

Common Form 8949 Mistakes to Avoid 

The most common problems involve missing transactions, incorrect basis, wrong holding periods, and choosing the wrong reporting category. 

1. Reporting Only Transactions That Appear on Form 1099 

Not every reportable transaction necessarily appears on a Form 1099. 

The IRS instructions state that certain capital asset transactions must be reported even if you did not receive Form 1099-B, Form 1099-DA, or Form 1099-S.  

2. Assuming the Broker’s Basis Is Always Correct 

Review your basis. 

If the reported basis is wrong, the Form 8949 instructions provide specific rules for correcting it through the adjustment columns.  

3. Mixing Short-Term and Long-Term Transactions 

Do not place a long-term transaction in Part I simply because it appears on the same brokerage statement. 

Determine the actual holding period first. 

4. Using the Wrong Digital Asset Box 

The current instructions specifically distinguish digital asset transactions from other transactions. 

For the current Form 8949 instructions, short-term digital asset transactions use G, H, or I, while long-term transactions use J, K, or L.  

5. Forgetting Crypto-to-Crypto Exchanges 

Selling cryptocurrency for dollars is not the only potential taxable disposal. 

An exchange of one digital asset for another can also create a reportable capital transaction.  

6. Treating All Crypto Income as Capital Gains 

Digital assets received as compensation, mining income, staking income, and other ordinary-income transactions can have different reporting requirements. 

The correct form depends on the nature of the transaction.  

7. Entering the Wrong Acquisition Date 

The holding period depends on acquisition and disposition dates. 

A wrong date can place a transaction in the wrong part of Form 8949. 

Case Study: Reporting Stock and Crypto Transactions 

This is an illustrative example, not a reported client case. 

Consider a taxpayer who had three investment transactions during the year: 

The taxpayer first separates the transactions based on holding period. 

Next, the taxpayer checks the applicable Form 1099-B or Form 1099-DA information and determines which Form 8949 boxes apply. 

The taxpayer then enters the transaction details, calculates the gains and losses, and transfers the applicable totals to Schedule D. 

The important point is that Form 8949 is not simply a place to copy numbers from a brokerage statement. The taxpayer must review the transaction dates, basis, proceeds, adjustments, and reporting category. 

A Simple Form 8949 Filing Checklist 

Before submitting your tax return, check these items: 

• Gather all Forms 1099-B.  
• Gather any Form 1099-DA.  
• Gather Form 1099-S when applicable.  
• Collect transaction records for assets without information statements.  
• Verify acquisition dates.  
• Verify sale or disposition dates.  
• Check cost basis.  
• Separate short-term and long-term transactions.  
• Identify digital asset transactions.  
• Select the correct Form 8949 box.  
• Review adjustment codes.  
• Calculate each gain or loss.  
• Transfer totals to Schedule D.  
• Keep supporting records with your tax documents.  

Final Takeaway 

IRS Form 8949 is the transaction-level reporting form for many sales and exchanges of capital assets. It works with Schedule D to calculate and summarize capital gains and losses. 

When preparing Form 8949, focus on five areas: 

• Holding period: Decide whether each transaction is short-term or long-term.  
• Reporting category: Select the correct box based on the applicable Form 1099 and transaction type.  
• Basis: Verify the cost or other basis rather than assuming the broker’s figure is always correct.  
• Adjustments: Report wash sales and other required adjustments using the appropriate codes.  
• Digital assets: Pay attention to the newer Form 8949 reporting categories and Form 1099-DA requirements.  

As of September 2026, the IRS lists the 2025 Form 8949 and 2025 instructions as the latest posted versions, so taxpayers preparing a 2026 tax-year return should check the IRS Form 8949 page for the applicable 2026 revision when released. 

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Article Name

IRS Form 8949: 2026 Instructions, PDF & How to File

Description

Learn how to complete IRS Form 8949, report stock and crypto sales, choose the right boxes, calculate gains and losses, and use the Form 8949 PDF.

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Jeffrey Johnson

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Accounts Confidant

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