Form 8949 overview (1040)

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For Form 1040, use Form 8949 to reconcile 1099-B or 1099-S amounts. It's used in calculating Schedule D lines 1b, 2, 3, 8b, 9, or 10. For complete filing requirements and instructions from the IRS, see About Form 8949.

The IRS allows you to choose between completing Form 8949 or submitting a substitute statement. If you want to submit a substitute, see Attaching a Form 8949 substitute to Form 8453. Otherwise, use the information below to complete your Form 8949 data entry in UltraTax CS and include the form with the return.

Form view

Per the IRS, UltraTax CS creates a separate Part I for each type of short-term transaction (Box A, B, or C) and a separate Part II for each type of long-term transaction (Box D, E, or F).

To see your 8949 amounts:

  1. Go to the Forms view.
  2. Click the 8949 folder. If you can't see the folder, try right-clicking and choosing Display all forms.
  3. Inside the 8949 folder, transactions are grouped together as follows:
    • Basis reported to the IRS: Shows Box A and D transactions.
    • Basis not reported to the IRS: Shows Box B and E transactions.
    • Not reported on 1099-B: Shows Box C and F transactions.

Data entry

Data entry is available in these locations:

  • Income folder
    • B&D screen, Schedule for detail statement in the Schedule D / Form 8949 section
    • Broker screen > Proceeds from broker transactions statement
    • 1099C screen
  • Retirement folder
    • 1099R screen
  • K1 1065, 1120S folder
    • K1-7 screen > Purchase history and Sales information statement
    • There may be other input that flows through the Shareholder or Partner Basis worksheet that triggers Form 8949.
  • Personal Sale folder
    • Home screen
    • Sale screen

Do not enter the same transaction on multiple screens.

Types of transactions

See the Form 8949 instructions for a complete list of transactions that must be reported on the Form 8949. You can click the links below to see detailed instructions on the following types:

Part I and Part II

Short-term transactions appear on Page 1, Part I and long-term transactions appear on Page 2, Part II. UltraTax CS automatically determines the holding period.

  • Income folder
    • B&D or Broker screen: UltraTax CS automatically labels transactions as short- or long-term based on the Date acq'd and Date sold fields. To force a transaction to be short-term or long-term, use the Force field.
    • 1099C screen: UltraTax CS uses the Date acquired in conjunction with the dates on the 1099-C or 1099-A facsimile to determine whether the holding period is short- or long-term.
  • Retirement folder
    • 1099R screen: UltraTax CS puts the transaction on Part II for long-term transactions. This is per the Form 8949 instructions. If the transaction isn't appearing, make sure you have an amount in box 3 and distribution code F.K1 1065, 1120S folder
      • K1-7 screen: UltraTax CS uses the purchase date (in the Purchase history statement) and the disposition date (in the Sales information statement) to determine whether the sale is short- or long-term.

Boxes A-F

For amounts you enter on the B&D or Broker screen, use the 8949 Box field to mark one of the boxes A-F at the top of Part I or Part II:

Input Result
8949 Box, code 1 Transaction is grouped with Box A or D type transactions. Short-term transactions are grouped with Box A and long-term transactions are grouped with Box D.
8949 Box, code 2 Transaction is grouped with Box B or E type transactions. Short-term transactions are grouped with Box E and long-term transactions are grouped with Box E. 
8949 Box, code 3 Transaction is grouped with Box C or F type transactions. Short-term transactions are grouped with Box C and long-term transactions are grouped with Box F.
8949 Box, code 4 Transaction is combined with other code 4 transactions and reported directly on Schedule D, lines 1a or 8a.

For amounts you enter on the 1099C screen, Box C will be marked for short-term transactions and Box F will be marked for long-term transactions. You can use the Treatment field to force a different holding period.

For amounts you enter on the 1099R screen, Box F will be marked. If the transaction isn't appearing, make sure you have an amount entered in box 3 and distribution code F.

For amounts you enter on the K1-7 screen, Box B will be marked for short-term transactions and Box E will be marked for long-term transactions.

Columns (a)-(e)

To complete columns (a)-(e) on Part I or Part II:

  • For B&D and Broker amounts, complete these fields: Desc, Date acq'd, Date sold, Sales Price, Cost basis.
  • For 1099C amounts:
    • column (a) will be completed automatically with a description of the type of gain/loss
    • column (b) and (c) will be blank
    • column (e) and (f) are calculated on worksheets in the Debt folder in Forms view.
  • For K1-7 amounts:
    • column (a) is the Name of entity on the K1 screen.
    • column (b)-(e) comes from the Purchase history and Sales information statements.

Column (f)

For a complete list of column (f) and (g) requirements, see the "How To Complete Form 8949, Columns (f) and (g)" section of the Form 8949 instructions.

For amounts on the B&D or Broker screen, you can use any combination of the 1099B Errors and Adj Code fields (there are 2) to report multiple codes. You can report up to 7 codes per line on the From 8949. UltraTax CS will print them in alphabetical order without spaces or commas.

Form 8949 column f adjustment code Data entry
B Enter 2 in the 1099B Errors field. For codes B and T, enter 3.
T Enter 1 in the 1099B Errors field. For codes B and T, enter 3.
H See Section 121 exclusion data entry.
Q Enter V, X, Y, or Z in the Type field. See Section 1202 Small Business Stock Gains Exclusion.
S Enter S in the Type field.
C Enter C in the Type field.
All other codes Select the corresponding code in the Adj Code field.

Column (g)

Most Form 8949 transactions will not need an amount in column (g). For a complete list of column (f) and (g) requirements, see the "How To Complete Form 8949, Columns (f) and (g)" section of the Form 8949 instructions.

For B&D or Broker screen amounts, column (g) adjustments generally come from amounts you enter in the Adj to G/L field. In certain cases, depending on the column (f) code, the column (g) amount may be 0, even if you enter an amount in the Adj to G/L field.

Reason for adjustment Data entry
1099-B Box 1f has an amount Enter the 1f amount in the Adj to G/L field. Enter D in the Adj Code field.
1099-B Box 1g has an amount Enter the 1g amount in the Adj to G/L field. Enter W in the Adj Code field.
1099-B Box 1e is incorrect
  1. Enter 1 in the 8949 Box field.
  2. Enter 2 or in the Form 1099B field.
  3. Enter the original amount issued on the Form 1099-B in the Cost/Basis field.
  4. Enter the adjustment amount in the Adj to G/L field.
1099-B Box 1e is blank
  1. Enter 2 in the 8949 Box field.
  2. Enter 2 or 3 in the Form 1099B field.
  3. Enter the correct basis amount in the Cost/Basis field.
1099-B Box 7 is checked Enter the adjustment amount in the Adj to G/L field. Enter L in the Adj code field.
All other required adjustments Refer to the column(f) table above for the column (f) code you want. Generally, you'll enter a code in the Adj Code field and enter the adjustment amount in the Adj to G/L field.

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