Form 8949 - Sales and Other Dispositions of
Capital Assets
- Updated April 03, 2025 - 11.00 AM - Admin, Tax990
Table of Contents
What is Form 8949?
Form 8949, Sales and Other Dispositions of Capital Assets is a critical document used to report the sale or exchange of capital assets, including stocks, bonds, and real estate. It is part of the broader process of reporting capital gains and losses for tax purposes. The form allows taxpayers to provide detailed information about each asset sold, including the date of acquisition, date of sale, proceeds, and cost or other basis of the asset.
Form 8949 works together with Schedule D, which summarizes the total capital gains or losses from all transactions reported on Form 8949.
When should Form 8949 be attached to Form 990-T?
Form 8949 should be attached to Form 990-T when you are reporting capital gains or losses as part of your Unrelated Business Income (UBIT).
Here’s the process to follow:
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Complete Form 8949: Begin by filling out Form 8949 to report any sales or dispositions of capital assets. This includes detailing each asset transaction, including the sale date, purchase date, sales price, and cost basis.
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Attach Form 8949 to Form 990-T: Once the calculations are completed, attach Form 8949 along with Schedule D to Form 990-T. This ensures that all relevant transactions are documented, and capital gains or losses are properly accounted for in your UBIT calculations.
What information is needed to complete Form 8949?
To complete Form 8949, you need the following information for each transaction:
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Description of Property: Type of asset (e.g., stock, bond) and quantity.
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Date Acquired: When you purchased or acquired the asset.
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Date Sold: When you sold or disposed of the asset.
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Proceeds: The sales price or amount received from the transaction.
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Cost or Other Basis: The original purchase price or cost of the asset.
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Adjustments: Any changes to the gain or loss, such as wash sale losses or basis reductions.
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Gain or Loss: The difference between proceeds and cost or basis.
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Short-term or Long-term: Indicate if the gain/loss is short-term (held ≤ 1 year) or long-term (held > 1 year).
How to complete Form 8949?
Form 8949 consists of two parts, and here are the instructions for completing each part.
Part I: Short-Term
Short-term transactions refer to the buying and selling of capital assets that are held for one year or less before being sold or disposed of.
Initially, check the appropriate boxes that describe your short-term transactions. If multiple boxes apply to your short-term transactions, fill out a separate Form 8949, Page 1 for each box. If you have too many transactions for one page, use additional forms with the same box checked.
Note:
Form 990-T filers must check box (C) Short - term transactions not reported to you on Form 1099-B
Line 1: You must complete a table that requires detailed information about the applicable short-term transactions you selected, including:
A. Description of property
B. Date of acquisition
C. Date sold or disposed of
D. Proceeds (Sales price)
E. Cost or other basis
F. Code(s) from instructions, if applicable
G. Amount of adjustment, if applicable
H. Gain or loss
Line 2: Enter the total amounts from columns (d), (e), (g), and (h) in the respective fields.
Part II: Long-Term
What is Long-Term Transactions?
Long-term transactions refer to the buying and selling of capital assets that are held for more than one year before being sold or disposed of.
Initially, check the appropriate boxes that describe your long-term transactions. If multiple boxes apply to your long-term transactions, fill out a separate Form 8949, Page 1 for each box. If you have too many transactions for one page, use additional forms with the same box checked.
Note:
Form 990-T filers must check box (F) Long-term transactions not reported to you on Form 1099-B
Line 1: You must complete a table that requires detailed information about the applicable long-term transactions you selected. Similar to short-term transactions, here you’re required to enter information such as:
A. Description of property
B. Date of acquisition
C. Date sold or disposed of
D. Proceeds (Sales price)
E. Cost or other basis
F. Code(s) from instructions, if applicable
G. Amount of adjustment, if applicable
H. Gain or loss
Line 2: Enter the total amounts from columns (d), (e), (g), and (h) in the respective fields.
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