Form 8949, Sales and Other Dispositions of Capital Assets, is where you list each sale of stock, funds, crypto and other capital assets, then carry the totals to Schedule D. Part I is for short-term sales (generally held 1 year or less) and Part II for long-term (more than 1 year). For 2025 returns, filed in 2026, there are new boxes G to L for digital assets.
Your broker's Form 1099-B, and now Form 1099-DA for digital assets, feeds straight into it. The box you tick depends on one question: did the broker report your cost basis to the IRS? Here's how the IRS's 2025 instructions sort it.
The 12 boxes on Form 8949
| Part | Box | Use it for |
|---|---|---|
| I (short-term) | A | 1099-B shows basis was reported to the IRS |
| I (short-term) | B | 1099-B shows basis wasn't reported to the IRS, or no basis shown |
| I (short-term) | C | No 1099-B received |
| I (short-term) | G, H, I | The same three cases for short-term digital asset sales on Form 1099-DA |
| II (long-term) | D | 1099-B shows basis was reported to the IRS |
| II (long-term) | E | 1099-B shows basis wasn't reported to the IRS, or no basis shown |
| II (long-term) | F | No 1099-B received |
| II (long-term) | J, K, L | The same three cases for long-term digital asset sales on Form 1099-DA |
The instructions are firm on one point: digital asset transactions shouldn't be reported using box C or F. Crypto you sold without a 1099-DA goes in box I (short-term) or L (long-term).
Each box gets its own Form 8949 page, so if you have sales in more than one category you'll complete more than one page. A short-term sale your broker reported with basis goes on a Part I page with box A ticked, and a long-term crypto sale with no 1099-DA goes on a separate Part II page with box L ticked. Mixing categories on one page is the classic mistake, and it's the first thing to check if your totals don't match your broker statements.
When you don't need Form 8949 at all
Exception 1 lets you skip the form for some sales and put the totals straight on Schedule D, line 1a (short-term) or 8a (long-term). It applies only when all of these are true:
- Your 1099-B or 1099-DA shows basis was reported to the IRS, with no adjustments in the adjustment boxes.
- The Ordinary box on the 1099-B or 1099-DA isn't checked.
- You don't need to adjust the basis, the type of gain or loss, or the gain or loss itself.
- You aren't deferring gain into, or ending a deferral from, a Qualified Opportunity Fund.
- The sale isn't of collectibles.
Exception 2 is for people with lots of trades. Instead of one row per sale, you can attach a statement with the same information in a similar format and put the totals on Form 8949. Writing "Available upon request" with summary totals isn't allowed for individuals.
How to fill in a row
- Column (a): a description of the property, such as 100 shares of a named company.
- Columns (b) and (c): the dates you acquired and sold it.
- Column (d): the proceeds.
- Column (e): the cost or other basis, usually what you paid including commissions.
- Column (f): any adjustment code, such as W for a wash sale or L for a nondeductible loss.
- Column (g): the amount of the adjustment.
- Column (h): the gain or loss, which carries to Schedule D.
If you inherited the property, got it as a gift, or got it in a tax-free exchange, your basis may not be the price paid. The instructions say to attach an explanation of your basis if you don't use actual cost.
Wash sales and other adjustments
A wash sale is the most common adjustment. You report the sale and enter the nondeductible loss as a positive number in column (g) with code W. If the wash sale loss on your 1099-B is wrong, you enter the correct amount, and if it's smaller than the figure on the form you attach a statement explaining the difference.
Other entries end up on Form 8949 too. A beneficiary of a charitable gift annuity who receives a Form 1099-R with an amount in box 3 reports it in Part II with box F or L checked, and corporations and partnerships report undistributed long-term gains from Form 2439 in Part II. Dividends from funds are a different form altogether, covered in our Form 1099-DIV guide.
Businesses and entities
Corporations and partnerships use Form 8949 as well. A special provision lets certain corporations, partnerships, securities dealers and nonprofits that file Form 1120-S or Form 1065, or are exempt from receiving a 1099-B, enter summary totals when they have more than five transactions for a part. If you're working through partnership figures, our Schedule K-1 guide covers where those numbers come from.
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The verdict
Start with the 1099-B or 1099-DA and ask one question for each sale: was basis reported to the IRS? That answer picks the box, and if nothing needs adjusting you may be able to skip Form 8949 for those sales entirely. Crypto is the year's big change, so don't drop digital asset sales into the old C or F boxes.
Frequently asked questions
What is Form 8949 used for?
To list each sale or exchange of a capital asset, with dates, proceeds, basis and any adjustment, before the totals go to Schedule D.
Do I need Form 8949 when my broker sends a 1099-B?
Not always. Under Exception 1 you can report totals directly on Schedule D when basis was reported to the IRS and no adjustments are needed.
Where do I report crypto on Form 8949?
For 2025 returns, short-term digital asset sales go in box G, H or I and long-term in box J, K or L. Don't use box C or F for them.
What's the difference between short-term and long-term?
Short-term is generally property held 1 year or less and goes in Part I. Long-term is generally more than 1 year and goes in Part II.
What does code W mean on Form 8949?
Code W marks a wash sale. You enter the nondeductible loss as a positive number in column (g).
Can I attach a statement instead of listing every trade?
Yes. Exception 2 lets you attach a statement with the same details in a similar format and enter the totals on Form 8949.
