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🇺🇸 United States

Form 8949 Capital Gains (Crypto/Stocks)

Report Stock, Crypto & Investment Sales

Hard ~30 min TaxCapital GainsCryptoStocksInvestments

/ What is this form?

Form 8949 reports every sale or disposition of a capital asset: stocks, bonds, cryptocurrency, real estate, collectibles. Each transaction requires date acquired, date sold, proceeds, cost basis, and gain/loss. The totals flow to Schedule D on your 1040.

/ Who needs this form?

  • Anyone who sold stocks, ETFs, mutual funds, bonds, or crypto
  • Anyone who sold real estate other than a primary residence under the exclusion
  • Crypto traders — every trade, swap, and sale is a taxable event

/ What you need before you start

1099-B forms from brokers
Transaction records for crypto (date, amount, cost basis for each trade)
Purchase records for any assets sold

/ Step-by-step guide

1 Gather All Transaction Records
Collect 1099-B from every brokerage, plus transaction histories for crypto (every trade, swap, and sale). Each transaction needs: date acquired, date sold, proceeds, and cost basis.
2 Separate Short-Term and Long-Term
Assets held 1 year or less are short-term (taxed as ordinary income). Assets held more than 1 year are long-term (taxed at 0%, 15%, or 20% depending on income). Report each on the correct part of Form 8949.
3 Enter Each Transaction
List every sale: description of asset, date acquired, date sold, proceeds, cost basis (what you paid), and any adjustments (wash sales, etc.). Software can import from brokers.
4 Calculate Gains and Losses
For each transaction: proceeds minus cost basis = gain or loss. Apply any adjustments. Losses can offset gains and up to $3,000 of ordinary income per year.
5 Transfer to Schedule D
Total the short-term and long-term columns and transfer the totals to Schedule D, which then flows to Form 1040.

/ Key fields explained

Field What to enter Common mistake
Date acquired / Date sold Exact dates determine whether gain is short-term (< 1 year) or long-term (> 1 year) Misclassifying as long-term when short-term — short-term gains are taxed at ordinary income rates, which can be much higher

/ Common mistakes to avoid

Not reporting crypto transactions — the IRS receives data from exchanges and issues CP2000 notices for mismatches
Not adjusting cost basis for wash sales (selling at a loss and rebuying within 30 days)
Thinking crypto-to-crypto trades are not taxable — they are

/ Frequently asked questions

Do I need to report every crypto trade?

Yes. Every trade, swap, or sale is a taxable event. Starting 2025, exchanges must issue 1099-DA for digital assets, making IRS matching automatic.

Can losses help me?

Yes. Capital losses offset capital gains dollar-for-dollar. Excess losses can offset up to $3,000 of ordinary income per year, with the rest carried forward indefinitely.