Part II. Use a separate Part II for each type of long-term

transaction described in the text for one of the boxes (D, E, F, J, K, or L) at the top of Part II. Include on each Part II only transactions described in the text for the box you check (D, E, F, J, K, or L). Check only one box on each Part II. For example, if you check box D or box J, include on that Part II only long-term transactions reported to you on a statement showing basis was reported to the IRS. Complete as many copies of Part II as you need to report all transactions of each type (D, E, F, J, K, or L).

If you are attaching multiple Forms 8949 to your return, attach the Form(s) 8949 that lists code "Z" for investments in a QOF in column (f) first.

If you received a Form 1099-B or Form 1099-DA for a transaction, the “Applicable checkbox on Form 8949” box near the top of that form may help you determine which box to check on the Part II where you report that transaction. A substitute statement you get instead of Form 1099-B or Form 1099-DA may also tell you which box to check.

Box D or Box J. Report on Part II with box D or box J checked all long-term transactions reported to you on Form 1099-B or Form 1099-DA (or substitute statement) with an amount shown for cost or other basis unless the statement indicates that amount wasn't reported to the IRS. If your statement shows cost or other basis but indicates it wasn't reported to the IRS (for example, if box 12 on Form 1099-B or box 2 on Form 1099-DA isn't checked), see Box E or Box K below.

Tip: If you don't need to make any adjustments to the basis or type of gain (or loss) reported to you on Form 1099-B or Form 1099-DA (or substitute statement) or to your gain (or loss) for any transactions for which basis has been reported to the IRS (normally reported on Form 8949 with box D or box J checked), you don't have to include those transactions on Form 8949. Instead, you can report summary information for those transactions directly on Schedule D. For more information, see Exception 1, later.

Box E or Box K. Report on Part II with box E or box K checked all long-term transactions reported to you on Form 1099-B or Form 1099-DA (or substitute statement) without an amount shown for cost or other basis or showing that cost or other basis wasn't reported to the IRS. If your statement shows cost or other basis for the transaction was reported to the IRS (for example, if box 12 on Form 1099-B or box 2 on Form 1099-DA is checked), see Box D or Box J above. Box F or Box L. Report on Part II with box F or box L checked all long-term transactions for which you can't check box D, E, J, or K because you didn't receive a Form 1099-B or Form 1099-DA (or substitute statement). Do not use box F to report digital asset transactions. Use box L.

You don't need to complete and file an entire copy of Form 8949 (Parts I and II) if you can check a single box to describe all your transactions. In that case, complete and file either Part I or II and check the box that describes the transactions. Otherwise, complete a separate Part I or II for each category of your transactions, as described above.

Include on your Schedule D the totals from all your Parts I and II. Form 8949 and Schedule D explain how to do this.

Exceptions to reporting each transaction on a separate row. There are exceptions to the rule that you must report each of your transactions on a separate row of Part I or II. Any taxpayer who qualifies can use Exception 1 or Exception 2 below. Taxpayers who file Form 1120-S or Form 1065 and other qualified entities should see Special provision for certain

corporations, partnerships, securities dealers, and other qualified entities , later.

If you qualify to use Exception 1 and also qualify to use Exception 2 , you can use both. Report the transactions that qualify for Exception 1 directly on either line 1a or 8a of Schedule D, whichever applies. Report the rest of your transactions as explained in Exception 2 .

Exception 2. Instead of reporting each of your transactions on a separate row of Part I or II, you can report them on an attached statement containing all the same information as Parts I and II and in a similar format (that is, description of property, dates of acquisition and disposition, proceeds, basis, adjustment and code(s), and gain (or loss)). Use as many attached statements as you need. Enter the combined totals from all your attached statements on Parts I and II with the appropriate box checked.

For example, report on Part I with box B or box H checked all short-term gains and losses from transactions your broker reported to you on a statement showing basis wasn't reported to the IRS. Enter the name of the broker followed by the words “see attached statement” in column (a). Leave columns (b) and (c) blank. Enter “M” in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h). If you have statements from more than one broker, report the totals from each broker on a separate row.

Don't enter “Available upon request” and summary totals in lieu of reporting the details of each transaction on Part I or II or attached statements.

Caution: Exception 2 is not available for the election to defer eligible gain by investing in a QOF. Taxpayers who elect to defer eligible gain must report the details of each investment in a QOF on Form 8949 in the manner described under How To Report an Election To Defer Tax on Eligible Gain Invested in a QOF, later.

Special provision for certain corporations, partnerships, securities dealers, and other qualified entities. This special provision applies to certain corporations, partnerships, securities dealers, and nonprofit organizations. Individual taxpayers aren't eligible except in rare circumstances.

You may enter summary totals instead of reporting the details of each transaction on a separate row of Part I or II or on attached statements if:

1. You file Form 1120-S or Form 1065, or are a taxpayer exempt from receiving Form 1099-B or Form 1099-DA, such as a

Exception 1. Form 8949 isn't required for certain transactions. You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D. This option applies only to transactions (other than sales of collectibles) for which:

• You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;

• The Ordinary box in box 2 on Form 1099-B isn’t checked;

• You received a Form 1099-DA (or substitute statement) that shows basis was reported to the IRS and doesn’t show any adjustments in box 1h or 1i;

• The Ordinary box in box 6 on Form 1099-DA isn’t checked;

• You don't need to make any adjustments to the basis or type of gain (or loss) reported on Form 1099-B or Form 1099-DA (or substitute statement), or to your gain (or loss); and

• You aren’t electing to defer income due to an investment in a QOF and aren’t terminating deferral from an investment in a QOF.

If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement. For more information, see the Schedule D instructions.

4 Instructions for Form 8949 (2025)

corporation or exempt organization, under Regulations section 1.6045-1(c)(3)(i)(B); and 2. You must report more than five transactions for that part.

If this provision applies to you, enter the summary totals on line 1. For short-term transactions, check box C or box I at the top of Part I even if the summary totals include transactions described in the text for box A, B, G, or H. For long-term transactions, check box F or box L at the top of Part II even if the summary totals include transactions described in the text for box D, E, J, or K. Enter “Available upon request” in column (a). Leave columns (b) and (c) blank. Enter “M” in column (f). If other codes also apply, enter all of them in column (f). Enter the totals that apply in columns (d), (e), (g), and (h).

Don't use a separate row for the totals from each broker. Instead, enter the summary totals from all brokers on a single row of Part I with box C or box I checked or Part II with box F or box L checked.

Caution: This special provision is not available for the election to defer eligible gain by investing in a QOF. Taxpayers who elect to defer eligible gain must report the details of each investment in a QOF on Form 8949 in the manner described under How To Report an Election To Defer Tax on Eligible Gain Invested in a QOF, later.

E-file. If you e-file your return but choose not to report each transaction on a separate row on the electronic return, you must attach Form 8949 to Form 8453 (or the appropriate form in the Form 8453 series) and mail the forms to the IRS. (However, you can't attach a paper Form 8949 to Form 8453-FE.) You can attach one or more statements containing all the same information as Form 8949, instead of attaching Form 8949, if the statements are in a format similar to Form 8949.

However, this doesn't apply to transactions that qualify for Exception 1 or the Special provision for certain corporations, partnerships, securities dealers, and other qualified entities , earlier. In those cases, an attachment, a statement, or Form 8453 isn’t required.

Charitable gift annuity. If you are the beneficiary of a charitable gift annuity and receive a Form 1099-R showing an amount in box 3, report the box 3 amount on Part II with box F or box L checked. Enter “Form 1099-R” in column (a). Enter the box 3 amount in column (d). Also, complete column (h).

Form 2438. Enter any net short-term capital gain from line 4 of Form 2438 on Part I with box C or box I checked. Enter “Net short-term capital gain from Form 2438, line 4” in column (a), enter the gain in column (h), and leave all other columns blank.

Enter any amount from line 12 of Form 2438 on Part II with box F or box L checked. Enter “Undistributed capital gains not designated (from Form 2438)” in column (a), enter the amount of the gain in column (h), and leave all other columns blank.

Form 2439. Corporations and partnerships report undistributed long-term capital gains from Form 2439 on Part II with box F or box L checked. Enter “From Form 2439” in column (a), enter the gain in column (h), and leave all other columns blank. Individuals report undistributed long-term capital gains from Form 2439 on line 11 of Schedule D (Form 1040). Estates and trusts report those amounts on line 11 of Schedule D (Form 1041).

Schedule P (Form 1040-NR). A nonresident alien individual, foreign trust, or foreign estate that sells or exchanges an interest in a partnership engaged in a U.S. trade or business reports recognized effectively connected capital gain (or loss) on Part I and checking box C or box I, if short term capital gain (or loss) and Part II and checking box F or box L, if long term capital gain (or loss). Enter the name and EIN, if available, of the partnership whose interest was transferred in column (a), enter the code “P”

in column (f), and enter the gain (or loss) in column (h) with all other columns filled in.

Schedule P (Form 1120-F). A foreign corporation that sells or exchanges an interest in a partnership engaged in a U.S. trade or business reports recognized effectively connected capital gain (or loss) on Part I and checking box C or box I, if short term capital gain (or loss) and Part II and checking box F or box L, if long term capital gain (or loss). Enter the name and EIN, if available, of the partnership whose interest was transferred in column (a), enter the code “P” in column (f), and enter the gain (or loss) in column (h) with all other columns filled in.

Contingent payment debt instruments. If you sell a taxable contingent payment debt instrument subject to the noncontingent bond method at a gain, your gain is ordinary income (interest income), even if you hold the debt instrument as a capital asset. If you sell a taxable contingent payment debt instrument subject to the noncontingent bond method at a loss, your loss is an ordinary loss to the extent of your prior original issue discount (OID) inclusions on the debt instrument. If the debt instrument is a capital asset, treat any loss that is more than your prior OID inclusions as a capital loss. See Regulations section 1.1275-4(b) for exceptions to these rules.

If you received a Form 1099-B or Form 1099-DA (or substitute statement) reporting the sale of a taxable contingent payment debt instrument subject to the noncontingent bond method and the Ordinary box in box 2 on Form 1099-B or the Ordinary box in box 6 on Form 1099-DA is checked, an adjustment may be required. See the Worksheet for Contingent Payment Debt Instrument Adjustment in Column (g), later, to figure the adjustment to enter in column (g).

See Pub. 550 or Pub. 1212, Guide to Original Issue Discount (OID) Instruments, for more details on any special rules or adjustments that might apply.

Net asset value (NAV) method for money market funds. If you have a capital gain (or loss) determined under the NAV method with respect to shares in a money market fund, enter the name of the fund followed by “(NAV)” in column (a) on Part I with box C or box I checked. Enter the net gain (or loss) in column (h). Leave all other columns blank. No long-term capital gain (or loss) can be entered under the NAV method.

Nondividend distributions. Distributions from a corporation with respect to its stock that are a return of your cost (or other basis) aren’t taxed until you recover your cost (or other basis), determined on a share-by-share basis. Reduce your cost (or other basis) in a share by the distributions allocable to such share. After you have recovered your entire cost (or other basis) in a share, any later nondividend distribution allocable to that share is taxable as a capital gain. Enter the name of the payer of any taxable nondividend distributions in column (a) on Part I with box C or box I checked or Part II with box F or box L checked (depending on how long you held the stock). Enter the taxable part of the distribution in columns (d) and (h). Each payer of a nondividend distribution should send you a Form 1099-DIV showing the amount of the distribution in box 3.

Dispositions of depreciable property not used in a trade or business. Report on Form 8949 a loss from the sale or exchange of depreciable property 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 sale of such property, see Disposition of Depreciable Property Not Used in Trade or Business in the Form 4797 instructions.

Other gains (or losses) where sales price or basis isn't known. If you have another gain (or loss) for which you don't know the sales price or basis (such as a long-term capital gain from Form 8621), enter a description of the gain (or loss) in column (a) on Part I with box C or box I checked or Part II with

Instructions for Form 8949 (2025) 5

box F or box L checked (depending on how long you held the property). If you have a gain, enter it in columns (d) and (h). If you have a loss, enter it in columns (e) and (h). Complete any other columns you can.

Column (a)—Description of Property For stock, include the number of shares. You can use stock ticker symbols or abbreviations to describe the property as long as they are based on the descriptions of the property as shown on Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement).

For a digital asset, include the full name or an abbreviated symbol of the digital asset and the exact units sold or disposed of in the transaction, and include the sale transaction ID number, if available.

Column (b)—Date Acquired Enter in this column the date you acquired the property. Enter the trade date for stocks and bonds you purchased on an exchange or over-the-counter market. For a short sale, enter the date you acquired the property delivered to the broker or lender to close the short sale. For property you previously elected to treat as having been sold and reacquired on January 1, 2001 (or January 2, 2001, for readily tradable stock), enter the date of the deemed sale and reacquisition.

If you received a Form 1099-B or Form 1099-DA (or substitute statement), box 1b on Form 1099-B or box 1d on Form 1099-DA may help you determine when you acquired the property.

Inherited property. Generally, if you disposed of property that you acquired by inheritance, report the sale or exchange on Part II with the appropriate box checked D, E, F, J, K, or L. Enter “INHERITED” in column (b).

Stock or digital assets acquired on various dates. If you sold a block of stock or digital assets (or similar property) that you acquired through several different purchases, you may report the sale on one row and enter “VARIOUS” in column (b). However, you must still report the short-term gain (or loss) on the sale on Part I and the long-term gain (or loss) on Part II.

Column (c)—Date Sold or Disposed Of Enter in this column the date you sold or disposed of the property. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For a short sale, enter the date you delivered the property to the broker or lender to close the short sale.

If you received a Form 1099-B or Form 1099-DA (or substitute statement), box 1c on Form 1099-B or box 1e on Form 1099-DA may help you determine when you sold or disposed of the property.

Column (d)—Proceeds (Sales Price) Follow the instructions below that apply to your transaction(s).

You didn't receive a Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement). If you didn't receive a Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement) for a transaction, enter in column (d) the net proceeds. The net proceeds equal the gross proceeds minus any selling expenses (such as broker’s fees, commissions, and state and local transfer taxes). If you sold a call option and it was exercised, you adjust the sales price of the property sold under the option for any option premiums (as instructed under Gain or Loss From Options in the Instructions for Schedule D (Form 1040)).

You received a Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement). If you received a Form

1099-B, Form 1099-DA, or Form 1099-S (or substitute statement) for a transaction, enter in column (d) the proceeds shown on the form or statement you received. If there are any selling expenses or option premiums that aren't reflected on the form or statement you received (by an adjustment to either the proceeds or basis shown), enter “E” in column (f) and the necessary adjustment in column (g). See the example under Column (g)—Amount of Adjustment, later.

If the proceeds you received were more than shown on Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement), enter the correct proceeds in column (d). This might happen if, for example, box 4 on Form 1099-S is checked.

You shouldn't have received a Form 1099-B or Form 1099-DA (or substitute statement) for a transaction merely representing the return of your original investment in a nontransferable obligation, such as a savings bond or a certificate of deposit. But if you did, report the proceeds shown on Form 1099-B or Form 1099-DA (or substitute statement) in both columns (d) and (e).

Column (e)—Cost or Other Basis The basis of property you buy is usually its cost, including the purchase price and any costs of purchase, such as commissions. You may not be able to use the actual cost as the basis if you inherited the property, got it as a gift, or received it in a tax-free exchange or involuntary conversion or in connection with a “wash sale.” If you don't use the actual cost, attach an explanation of your basis.

The basis of property acquired by gift is generally the basis of the property in the hands of the donor. The basis of inherited property is generally the fair market value at the date of death. See Pub. 551 for details.

If you elected to recognize gain on property held on January 1, 2001, your basis in the property is its closing market price or fair market value, whichever applies, on the date of the deemed sale and reacquisition, whether the deemed sale resulted in a gain or an unallowed loss.

Schedule A (Form 8971)—Consistent basis reporting. If you received Schedule A (Form 8971) from an executor of an estate or other person required to file an estate tax return and you are a beneficiary who receives (or is to receive) property from that estate, you will be required to report a basis consistent with the final estate tax value of the property if Part II, column (f), of the Schedule A (Form 8971) you received indicates that the property increased the estate tax liability of the decedent. In this case, first use an amount that is equal to or less than the final estate tax value listed in Part II, column (h), of the Schedule A (Form 8971). This amount is your initial basis in the property. You then adjust your initial basis in the property, as described under Adjustments to basis , later. The resulting amount is entered in column (e) of Form 8949.

Tip: If you received a supplemental Schedule A (Form 8971), use the most recently dated supplemental Schedule A (Form 8971) to determine your initial basis. Penalties for inconsistent basis reporting. If you use an initial basis that is more than the amount listed in Part II, column (h), of Schedule A (Form 8971) to figure your basis in the property and Part II, column (f), of Schedule A (Form 8971) indicates that the property increased the estate tax liability of the decedent, you may be subject to a penalty equal to 20% of any resulting underpayment of tax because the basis reported isn’t consistent with the final estate tax value of the property.

For more details, see Pub. 550 and Pub. 551 or the Instructions for Form 8971.

Adjustments to basis. Before you can figure any gain (or loss) on a sale, exchange, or other disposition of property, you must usually make certain adjustments (increases and decreases) to

6 Instructions for Form 8949 (2025)

the basis of the property. Increase the basis of your property by capital improvements. Decrease it by depreciation, amortization, and depletion. Other adjustments may be necessary for your property. See Pub. 551 for more information.

If you sold shares of stock, adjust your basis in each share, but not below zero, by subtracting all the nondividend distributions allocable to such shares that were received before the sale and that reduced your cost (or other basis) in such shares. Also, adjust your basis for any stock splits. See Pub. 550 for details. See Form 1099-B or Form 1099-DA and How To Complete Form 8949, Columns (f) and (g) , later, for the adjustment you must make if you received a Form 1099-B or Form 1099-DA (or substitute statement) and the basis shown in box 1e on Form 1099-B or box 1g on Form 1099-DA is incorrect.

Increase the cost or other basis of a taxable OID debt instrument by the amount of OID that you have included in gross income for that instrument. See Pub. 550 for details.

Increase the cost or other basis of a tax-exempt OID debt instrument by the amount of tax-exempt OID that accrued on the debt instrument while held by you. See Pub. 550 for details.

If you elect to currently include in income the market discount on a bond, increase the basis of the bond by the market discount that has been included in income for that bond. See Pub. 550 for details.

If you elect to amortize bond premium on a taxable bond, reduce the basis of the bond by any bond premium amortization allowed as either an offset to interest income or as a deduction for that bond. Reduce the basis of a tax-exempt bond by any bond premium amortization for that bond. See Pub. 550 for details.

If a charitable contribution deduction is allowable because of a bargain sale of property to a charitable organization, you must allocate your basis in the property between the part sold and the part contributed based on the fair market value of each. See Pub. 544 for details.

For compensatory options granted after 2013, the basis information reported to you on Form 1099-B or Form 1099-DA (or substitute statement) won’t reflect any amount you included in income upon grant or exercise of the option. Increase your basis by any amount you included in income upon grant or exercise of the option. For compensatory options granted before 2014, any basis information reported to you on Form 1099-B or Form 1099-DA (or substitute statement) may or may not reflect any amount you included in income upon grant or exercise of the option; therefore, the basis may need to be adjusted. If the basis information reported to you on Form 1099-B or Form 1099-DA (or substitute statement) doesn’t reflect an amount you included in income upon grant or exercise of the option, increase your basis by the amount you included in income upon grant or exercise of the option. See Pub. 525 for more information.

Solely for purposes of calculating a loss on a disposition of stock of a specified 10%-owned foreign corporation, if a domestic corporate shareholder received an actual or constructive dividend after December 31, 2017, and that dividend qualified for the 100% dividends-received deduction, the shareholder must reduce its basis in the foreign corporation stock by the amount of the allowable deduction (except to the extent such basis was reduced under section 1059 by reason of a dividend that qualified for the deduction), but not below zero.

Average basis. You can use the average basis method to determine the basis of shares of stock if the shares are identical to each other, you acquired them at different prices and left them in an account with a custodian or agent, and either:

• They are shares in a mutual fund (or other regulated investment company);

• They are shares you hold in connection with a dividend reinvestment plan (DRP), and all the shares you hold in connection with the DRP are treated as covered securities (defined below); or

• You acquired them after 2011 in connection with a DRP. Shares are identical if they have the same CUSIP number, except that shares of stock in a DRP aren't identical to shares of stock that aren't in a DRP, even if they have the same CUSIP number. (CUSIP numbers are security identification numbers.)

If you are using the average basis method and received a Form 1099-B or Form 1099-DA with respect to a tokenized security (or substitute statement) that shows an incorrect basis, enter “B” in column (f), enter the basis shown on Form 1099-B or Form 1099-DA with respect to a tokenized security (or substitute statement) in column (e), and see How To Complete Form 8949, Columns (f) and (g), later. For details on making the election and figuring average basis, see section 1012, Pub. 550, and Regulations section 1.1012-1(e).

Form 1099-B or Form 1099-DA. If the property you sold was a covered security, its basis should be shown in box 1e on Form 1099-B or box 1g on Form 1099-DA (or substitute statement) you received from your broker. Generally, a covered security is any of the following.

• Stock you acquired after 2010 (generally after 2011, if in a mutual fund or other regulated investment company, or acquired through a DRP).

• Certain stock held in a mutual fund or in connection with a DRP for which a single-account election is in effect.

• Certain debt instruments you acquired after 2013.

• Certain options, warrants, and stock rights you granted or acquired after 2013.

• A securities future contract you entered into after 2013.

• Variable rate debt instruments acquired after 2015.

• Inflation-indexed debt instruments acquired after 2015.

• Contingent payment debt instruments acquired after 2015.

• Convertible debt instruments acquired after 2015.

• Options on debt instruments with payments denominated in (or determined by reference to) a currency other than the U.S. dollar and granted or acquired after 2015.

• Options issued as part of investment units and granted or acquired after 2015.

• A digital asset acquired after 2025. For more information on covered securities, see section 6045(g) and Regulations section 1.6045-1. For covered securities, enter the basis shown on Form 1099-B or Form 1099-DA (or substitute statement) in column (e). If the basis shown on Form 1099-B or Form 1099-DA (or substitute statement) isn’t correct, see How To Complete Form 8949, Columns (f) and (g) , later, for the adjustment you must

make.

If box 5 on Form 1099-B or box 9 on Form 1099-DA (or substitute statement) is checked, the property sold wasn't a covered security.

For noncovered securities, enter the correct basis of the property in column (e) if:

• No basis is shown on Form 1099-B or Form 1099-DA (or substitute statement), or

• The basis shown wasn't reported to the IRS. If the basis shown wasn’t reported to the IRS, see How To Complete Form 8949, Columns (f) and (g) , later, for further

information about how to report the correct basis.

Column (f)—Code In order to explain any adjustment to gain (or loss) in column (g), enter the appropriate code(s) in column (f). See How To Complete Form 8949, Columns (f) and (g), later. If more than one code applies, enter all the codes that apply in alphabetical

Instructions for Form 8949 (2025) 7

order (for example, “BOQ”). Don't separate the codes by a space or comma.

Column (g)—Amount of Adjustment Enter in this column any necessary adjustments to gain (or loss). Enter negative amounts in parentheses. Also, enter a code in column (f) to explain the adjustment. See How To Complete Form 8949, Columns (f) and (g), later.

More than one code. If you entered more than one code in column (f) on the same row, enter the net adjustment in column (g). For example, if one adjustment is $5,000 and another is ($1,000), enter $4,000 ($5,000 − $1,000).

Example. You sold your main home in 2025 for $320,000 and received a Form 1099-S showing the $320,000 gross

proceeds. The home's basis was $100,000. You had selling expenses of $20,000 that weren’t included on your Form 1099-S. Under the tests described in Sale of Your Home in the Instructions for Schedule D (Form 1040), you can exclude the entire $200,000 gain from income. On Form 8949, Part II, check box F or box L at the top. Complete columns (a), (b), and (c). Enter $320,000 in column (d) and $100,000 in column (e). Enter “EH” in column (f). In column (g), enter $220,000 ($20,000 selling expenses + $200,000 exclusion) as a negative number. Put it in parentheses to show it is negative. In column (h), enter -0- ($320,000 − $100,000 − $220,000). If this is your only transaction on this Part II, enter $320,000 in column (d) on line 10 of Schedule D (Form 1040), $100,000 in column (e), ($220,000) in column (g), and -0- in column (h).

How To Complete Form 8949, Columns (f) and (g)

For most transactions, you don't need to complete columns (f) and (g) and can leave them blank. You may need to complete columns (f) and (g) if you got a Form 1099-B, Form 1099-DA, or Form 1099-S (or substitute statement) that is incorrect, if you are excluding or postponing a capital gain, if you have a disallowed loss, or in certain other situations. Details are in the table below. If you enter more than one code in column (f), see More than one code in the instructions for column (g) above.

8 Instructions for Form 8949 (2025)

Instructions for Form 8949 (2025) 9

10 Instructions for Form 8949 (2025)

Figure gain (or loss) on each row. First, subtract the cost or other basis in column (e) from the proceeds (sales price) in column (d). Then take into account any adjustments in column (g). Enter the gain (or loss) in column (h). Enter negative amounts in parentheses.

Example 1—Gain. Column (d) is $6,000 and column (e) is $2,000. Enter $4,000 in column (h).

Example 2—Loss. Column (d) is $6,000 and column (e) is $8,000. Enter ($2,000) in column (h).

Example 3—Adjustment. Column (d) is $6,000, column (e) is $2,000, and column (g) is ($1,000). Enter $3,000 in column (h).

Example 4—Adjustment for incorrect basis. You sold stock for $1,000. You had owned the stock for 3 months. Your correct basis for the stock is $100, but you receive a Form 1099-B or Form 1099-DA that shows your basis is $900 and shows your broker reported that basis to the IRS. Enter $900 on line 1 of the Worksheet for Basis Adjustments in Column (g), later. Enter $100 on line 2 of the worksheet. Because line 1 is larger than line 2, leave line 3 blank and enter $800 ($900 − $100) as a positive number on line 4. Also, enter $800 in column

column (f). Enter $1,000 in column (d) and $900 in column (e). To figure your gain (or loss), subtract $900 from $1,000. Combine the result, $100, with the $800 adjustment in column (g). Your gain is $900 ($100 + $800). Enter $900 in column (h).

Example 5—Digital asset. During the year, you purchased one unit of digital asset A on June 1 for $1,000. Three years later on June 1 you use a platform for trading digital assets to exchange your unit of digital asset A for one unit of digital asset B with a fair market value of $3,000. You must report a long-term capital gain of $2,000.

Example 6—Digital asset. You are a self-employed attorney who performs legal services for a client. The client gives you one unit of digital asset A as payment for services. At the time of the payment, the fair market value of one unit of digital asset A is $10,000. You report $10,000 in self-employment income (the fair market value of one unit of digital asset A). Two months later, when the fair market value of one unit of digital asset A is $12,000, you decide to sell it. You must report a short-term capital gain of $2,000, which is the difference between the sales price ($12,000) and your basis in one unit of digital asset A ($10,000).

Worksheet for Basis Adjustments in Column (g) Keep for Your Records

Worksheet for Accrued Market Discount Adjustment in Column (g) Keep for Your Records

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Worksheet for Contingent Payment Debt Instrument Adjustment in Column (g) Keep for Your Records

How To Report an Election To Defer Tax on Eligible Gain Invested in a Qualified Opportunity Fund (QOF)

Tip: For more information on QOFs, see Pub. 544.

If you elect to defer tax on an eligible gain by investing in a QOF, report the eligible gain on the form and in the manner otherwise instructed. For example, individual taxpayers would report gain from the sale of stock on Form 8949 and Schedule D (Form 1040). If the gain is reported on Form 8949, do not make any adjustments for the deferral in column (g).

Report the deferral of the eligible gain on its own row of Form 8949 in Part I with box C or box I checked or Part II with box F or box L checked (depending on whether the gain being deferred is short term or long term). If you made multiple investments in different QOFs or in the same QOF on different dates, use a separate row for each investment. If you invested eligible gains of the same character (but from different transactions) on the same date into the same QOF, you can group those investments on the same row. In column (a), enter only the employer identification number (EIN) of the QOF into which you invested. In column (b), enter the date you invested in the QOF. Leave columns (c), (d), and (e) blank. Enter code “Z” in column (f) and the amount of the deferred gain as a negative number (in parentheses) in column (g).

Your investment in a QOF can be used to defer only long-term gain, only short-term gain, or a combination of both short-term and long-term gain. You do not need to trace or allocate the funds invested in a QOF to the specific gain being deferred, but the investment in the QOF must have occurred within the 180-day period beginning on the date the deferred gain was realized. If you realized both short-term and long-term gains during the 180-day period, you can choose how much of each gain to defer by reporting the deferral in Part I or Part II, as applicable. The character of the eligible gain will survive the investment in the QOF. When you recognize the eligible gain (either when you sell or exchange or otherwise dispose of your investment in the QOF or December 31, 2026, whichever is earlier), the gain you recognize will be the same character as the gain you deferred.

Tip: If you are attaching multiple Forms 8949 to your return, attach the Form(s) 8949 that lists code "Z" in column (f) first.

Tip: If you elect to defer tax on an eligible gain by investing in a QOF, you will need to complete a Form 8997 for each year you hold the investment and for the year you dispose of the investment. If you have held that investment for more than 5 years, see the Instructions for Form 8997 for additional information regarding the basis of that investment.

How To Report Eligible Gains From Section 1231 Property

Taxpayers deferring eligible gains from section 1231 property, including gains from installment sales and like-kind exchanges, by investing in a QOF must report the deferral election on Form 8949 in the tax year of the deferral. Likewise, taxpayers selling or exchanging a QOF investment must report the inclusion of the eligible gain on Form 8949.

Reporting the deferral election. Each QOF investment of section 1231 gains will use two separate rows in Part II (long-term transactions) of Form 8949.

• For the first row, in column (a), write “QOF INVESTMENT FROM FORM 4797.” Leave columns (b) through (e) blank. Enter code “O” in column (f), and in column (g) report the amount of the QOF investment from Form 4797 as a positive number. For example, if ($75,000) was reported in column (g) of Form 4797, report $75,000 in column (g) of Form 8949.

• For the second row, in column (a), enter only the EIN of the QOF investment. In column (b), enter the date of the QOF investment. Leave columns (c), (d), and (e) blank. Enter code “Z” in column (f) and the amount of the deferred gain as a negative number (in parentheses) in column (g).

Reporting the inclusion. Each inclusion will use two separate rows in Part II.

• For the first row, in column (a), write “QOF INCLUSION EVENT FROM SECTION 1231 GAINS.” Leave columns (b) through (e) blank. Enter code “O” in column (f), and in column (g) report the amount of the included section 1231 gains to Form 4797 as a negative number (in parentheses). For example, $75,000 inclusion of section 1231 gains was reported in column (g) of Form 4797, report ($75,000) in column (g) of Form 8949.

• For the second row, enter the EIN of the QOF investment in column (a). Complete columns (b) and (c). Leave columns (d)

12 Instructions for Form 8949 (2025)

and (e) blank. Enter code "Y" in column (f), and in column (g) enter the amount of previously deferred gain as a positive number.

How To Report Gain Previously Deferred in a QOF Investment If you sold or exchanged your investment in a QOF during the tax year, you must report the amount of eligible gain that you previously deferred and that you are now recognizing. Report the gain from each investment on its own row. Check box C or box I in Part I or check box F or box L in Part II depending on whether the gain is short term or long term. The gain you recognize will be the same character as the gain you deferred. Put the EIN of the QOF investment you are selling in column (a). Complete columns (b), (c), (d), and (e). Enter code "Y" in column (f), and enter the amount of previously deferred gain as a positive number in column (g).

Tip: If you disposed of your investment in a QOF, you will also need to complete Form 8997. See the instructions for Form 8997 for more information.

The total of the amounts in column (h) of line 2 of all your Forms 8949 should equal the amount you get by combining columns (d), (e), and (g) on the corresponding line of Schedule D (Form 1040). For example, the total of the amounts in column (h) of line 2 of all your Forms 8949 with box A or box G checked should equal the amount you get by combining columns (d), (e), and (g) on line 1b of Schedule D. The total of the amounts in column (h) of line 2 of all your Forms 8949 with box E or box K checked should equal the amount you get by combining columns (d), (e), and (g) on line 9 of Schedule D.

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