Line 1

Enter all sales and exchanges of capital assets, including stocks, bonds, digital assets, and real estate (if not reported on line 1a or 8a of Schedule D or on Form 4684, 4797, 6252, 6781, or 8824). Include these transactions even if you didn't receive a Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement) for the transaction. However, if the property you sold was your main home, see Sale of Your Home in the Instructions for Schedule D (Form 1040).

Enter all losses from the disposition of a portion of a MACRS asset not used in a trade or business but held for investment or for use in a not-for-profit activity. If you have a gain from the

partial disposition of a MACRS asset, see Disposition of Depreciable Property Not Used in Trade or Business in the Form 4797 instructions.

If you received a Form 1099-K reporting proceeds from the sale of personal property that resulted in gain, that transaction is taxable and must be entered on Form 8949. Loss on the sale of personal property is not deductible, and generally should not be reported on Form 8949. However, if you receive a Form 1099-K reporting proceeds from the sale of personal property that resulted in a loss, you should report the loss with an offsetting entry. You can do this either on Form 1040, in the entry space at the top of Schedule 1, or on Form 8949, by entering an adjustment when reporting the proceeds and basis of the property, as follows. Enter “L” in column (f) as the code explaining the loss is nondeductible. Then enter the amount of the nondeductible loss as a positive number in column (g). Enter the proceeds in column (d), enter the cost basis in column (e), enter “L” in column (f), and enter in column (g) the amount of the adjustment that will result in $0 as the gain or loss in column (h).

Enter the details of each transaction on a separate row (unless one of the Exceptions to reporting each transaction on a separate row , described later, applies to you).