🇺🇸United States

Form 8949 Capital Gains (Crypto/Stocks)

Report Stock, Crypto & Investment Sales

Hard~30 minTaxCapital 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

1Gather 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.

2Separate 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.

3Enter 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.

4Calculate 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.

5Transfer 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.