Page 125 - Virtual Currencies

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4684 4684 Casualties and Thefts • For a disposition of an interest in, or prop-
4797 4797 Sales of Business Property Schedule D and Form erty used in, an activity to which the at-risk
rules apply, complete Form 6198. See
6252 6252 Installment Sale Income 8949 Pub. 925, Passive Activity and At-Risk
Rules.
6781 6781 Gains and Losses From Section • For a disposition of an interest in, or prop-
1256 Contracts and Straddles Form 8949. Individuals, corporations, and erty used in, a passive activity, complete
8824 8824 Like-Kind Exchanges partnerships use Form 8949 to report the fol- Form 8582, Passive Activity Loss Limita-
lowing.
tions. See Pub. 925.
8949 8949 Sales and Other Dispositions of • Sales or exchanges of capital assets, in- • For gains and losses from section 1256
Capital Assets cluding stocks, bonds, etc., and real estate contracts and straddles, complete Form
See How To Get Tax Help for information about (if not reported on another form or sched- 6781. See Pub. 550.
ule such as Form 4684, 4797, 6252, 6781,
getting publications and forms. or 8824). Include these transactions even if
See the instructions for the Schedule D you
you did not receive a Form 1099-B or are filing for additional reporting requirements.
1099-S.
Information Returns • Gains from involuntary conversions (other
than from casualty or theft) of capital as- Personal-use property. Report gain on the
sale or exchange of property held for personal
If you sell or exchange certain assets, you sets not used in your trade or business. use (such as your home) on Form 8949 and
should receive an information return showing • Nonbusiness bad debts. Schedule D (Form 1040), as applicable. Loss
the proceeds of the sale. This information is • Worthlessness of a security. from the sale or exchange of property held for
also provided to the IRS. • The election to defer capital gain invested personal use is not deductible. But if you had a
in a qualified opportunity fund (QOF). loss from the sale or exchange of real estate
Form 1099-B. If you sold property, such as • The disposition of interests in QOFs. held for personal use for which you received a
stocks, bonds, or certain commodities, through Form 1099-S, report the transaction on Form
a broker, you should receive Form 1099-B (or a Individuals, if you are filing a joint return, 8949 and Schedule D, as applicable, even
substitute statement) from the broker. Use the complete as many copies of Form 8949 as you though the loss is not deductible. See the In-
Form 1099-B or substitute statement to com- need to report all of your and your spouse's structions for Schedule D (Form 1040) and the
plete Form 8949 and/or Schedule D. Whether transactions. You and your spouse may list your Instructions for Form 8949 for information on
or not you receive Form 1099-B, you must re- transactions on separate forms or you may how to report the transaction.
port all taxable sales of stock, bonds, commodi- combine them. However, you must include on
ties, etc. on Form 8949 and/or Schedule D, as your Schedule D the totals from all Forms 8949
applicable. For more information on figuring for both you and your spouse. Long and Short Term
gains and losses from these transactions, see Corporations also use Form 8949 to report
chapter 4 in Pub. 550. For information on re- their share of gain or loss from a partnership, Where you report a capital gain or loss depends
porting the gains and losses, see the Instruc- estate, or trust. on how long you own the asset before you sell
tions for Form 8949 and the Instructions for Business entities meeting certain criteria or exchange it. The time you own an asset be-
Schedule D (Form 1040), or the instructions for may have an exception to some of the normal fore disposing of it is the holding period.
the applicable Schedule D. requirements for completing Form 8949.
File Form 8949 with the Schedule D for the If you received a Form 1099-B (or substitute
Form 1099-S. An information return must be return you are filing. This includes Schedule D statement), box 2 may help you determine
provided on certain real estate transactions. of Forms 1040, 1040-SR, 1041, 1065, 8865, whether the gain or loss is short term or long
Generally, the person responsible for closing 1120, 1120-S, 1120-C, 1120-F, 1120-FSC, term.
the transaction must report on Form 1099-S 1120-H, 1120-IC-DISC, 1120-L, 1120-ND,
sales or exchanges of the following types of 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, Generally, if you hold a capital asset 1 year
property. and 1120-SF; and certain Forms 990-T. See the or less, the gain or loss from its disposition is
• Land (improved or unimproved), including Instructions for Form 8849 for more information. short term. Report it on Part I of Form 8949
air space. and/or Schedule D, as applicable. If you hold a
• An inherently permanent structure, includ- Schedule D. Use Schedule D to figure the capital asset longer than 1 year, the gain or loss
ing any residential, commercial, or indus- overall gain or loss from transactions reported from its disposition is generally long term. Re-
trial building. on Form 8949, and to report certain transac- port it on Part II of Form 8949 and/or Sched-
• A condominium unit and its related fixtures tions you do not have to report on Form 8949. ule D, as applicable.
and common elements (including land). Before completing Schedule D, you may have
• Stock in a cooperative housing corpora- to complete other forms as shown below. However, certain partnership interests held
tion. • Complete all applicable lines of Form 8949 in connection with the performance of services
• Any noncontingent interest in standing tim- before completing lines 1b, 2, 3, 8b, 9, and may be subject to different holding period rules.
ber. 10 of your applicable Schedule D. See the See the Instructions for Form 8949 for more in-
formation.
If you sold or exchanged any of the above types Instructions for Form 8949 and the Instruc-
of property, the person responsible for closing tions for Schedule D for special provisions Table 4-1. Do I Have a Short-Term
the transaction must give you a copy of Form and exceptions to completing Form 8949. or Long-Term Gain or Loss?
1099-S (or substitute statement) containing the Enter on Schedule D the combined totals
same information as Form 1099-S. Your Form from all your Forms 8949. IF you hold the THEN you have a...
1099-S will show the gross proceeds from the • For a sale, exchange, or involuntary con- property...
sale or exchange in box 2. See the Instructions version of business property, complete
for Form 8949 and the Instructions for Sched- Form 4797 (discussed later). 1 year or less, short-term capital gain or
ule D (Form 1040) for how to report these trans- • For a like-kind exchange, complete Form loss.
actions. Also see chapter 2 in Pub. 550. 8824. See Reporting the exchange under more than 1 year, long-term capital gain or
For more information, see chapter 4 in Pub. Like-Kind Exchanges in chapter 1. loss.
550. Also, see the Instructions for Form 8949. • For an installment sale, complete Form
6252. See Pub. 537.
• For an involuntary conversion due to casu- These distinctions are essential to correctly
alty or theft, complete Form 4684. See arrive at your net capital gain or loss. Capital
Pub. 547, Casualties, Disasters, and losses are allowed in full against capital gains
Thefts. plus up to $3,000 of ordinary income. See Capi-
tal Gains Tax Rates, later.
Page 34 Chapter 4 Reporting Gains and Losses