Form 8949 exceptions (1040)

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If sales transactions meet certain IRS requirements, you can bypass Form 8949. There are 2 exceptions to filing Form 8949. If both exceptions apply, you can use both.

Exception 1

IRS requirements

To report amounts directly on Schedule D, transactions must meet all of these IRS requirements.

  • The gain/loss is not from the sale of collectibles
  • The 1099-B or substitute statement shows basis was reported to the IRS
  • No adjustments in box 1f or 1g
  • No adjustments needed to the basis, type of gain, or gain/loss amount
  • Not electing to defer income due to an investment in a QOF
  • Not terminating deferral from an investment in a QOF

Any transactions that meet these requirements can be reported directly on Schedule D line 1a or line 8a.

Data entry

To report a transaction directly on Schedule D:

  1. Go to the Income folder.
  2. Click the B&D tab or the Broker tab. Only use the Broker tab if you're entering a consolidated broker statement.
  3. If you're on the Broker tab, click the Proceeds statement. If you're on the B&D tab, click the Schedule for detail statement.
  4. Enter code 4 in the 8949 Box field.
  5. Make sure these fields are empty. If you need an amount in any of these fields, you won't be able to report directly on Schedule D, per the IRS.
    • 1099B Errors
    • Adj to G/L
  6. Make sure the Type field is not set to C (for Collectibles). If the type code is C, you won't be able to report directly on Schedule D, per the IRS. 

Result on Schedule D, line 1a and line 8a

UltraTax CS combines all the transactions that meet the data entry and IRS requirements described above and report them on Schedule D, lines 1a or 8a, depending on the holding period.

To see a worksheet with the details on lines 1a and 8a, go to the DWrk folder in the Forms view. By default, worksheets print when two or more transactions exist. To change this, go to Setup > 1040 Individual > Other Return Options > Return Presentation and enter the minimum number of transactions to print Sch D, Line 1a/8a worksheets.

Exception 2

Instead of completing Form 8949, you can submit a substitute statement. Your substitute statement should be formatted similarly to the Form 8949 itself.

First, create or collect the substitute statement(s) you want to attach to the return. Then, attach a form 8949.

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