2021 Form 8949— Sales and Other Dispositions of Capital Assets is used for reporting capital gains and losses by individuals, corporations, partnerships, trusts, and estates.
All taxpayers can use Form 8949 to report short and long-term capital gains and losses from investments. This is a fairly new tax form as Schedule D was used to report their capital gains and losses. The IRS introduced it first in 2011 and since then it is in use.
However, Schedule D and Form 1099-B must be filed if you’re filing Form 8949.
Form 8949 can be filled out in 2021 for reporting the following.
- Non-business bad debts
- Disposition of interest in QOF (Qualified Opportunity Funds)
- The worthlessness of a security
- The gains from involuntary conversions that are not used for business or trades
- The sale, trade, or exchange of a capital asset not reported on another tax form
- The sale of stock of a 10% owned foreign corporation adjusted for the dividends. (Only if the sale would otherwise generate a loss)
Filing Form 8949 to Report Gains and Losses
The filing status of the taxpayer plays a role in filing Form 8949. If you’re married filing jointly, complete Form 8949 to report all of your transactions along with other required tax forms. There is no limit on how many Forms 8949 you file. Having said that, file as many as 8949 you need.
As mentioned above, Schedule D must be completed if you’re filing Form 8949. In actuality though, you must file Schedule D to report gains and losses. You will file Form 8949 first to determine your gains and losses and enter the amounts on Schedule D even if you know it beforehand.
In a situation where Form 1099-B doesn’t report the basis of the assets, you must determine the basis amount to figure out the gain or loss from the capital asset. For this, you will need to use a separate Form 8949 and attach them to your tax return.
Also, if there are any inaccurate data found on Form 1099-B, you can use Form 8949 to correct them. Given the financial impacts of the coronavirus pandemic, it is very possible that you will see inaccurate information reported on your 1099-B in 2021. Use Form 8949 to report these errors.
Printable 2021 Form 8949
Form 8949 can be filled out below. This is the fillable version of 2021 Form 8949 where you can file it online and print out.
Once you’re done filling out 2021 Form 8949, use the buttons on the upper right corner to download it as PDF or print out. This version of Form 8949 is best for those who are filing a paper tax return. Since you will need Forms 1099, you can get them from here. Also, learn more about signing documents online from here.