Form 8949 - Sales And Other Dispositions Of Capital Assets

The Federal Form 8949, also known as "Sales and Other Dispositions of Capital Assets," is used to report sales and other dispositions of capital assets. This form is used in conjunction with Schedule D (Form 1040) to report capital gains and losses from the sale or exchange of capital assets.

In particular, Form 8949 is used to report the following:

• Sales of stocks, bonds, mutual funds, and other securities
• Sales of real estate
• Sales of business assets, such as equipment or property
• Exchanges of like-kind property (e.g., a 1031 exchange)
• Involuntary conversions, such as a foreclosure or repossession
• Cancellation of debt

The form requires you to provide detailed information about each transaction, including the date of sale, the type of asset, the cost basis, and the gain or loss. This information is then used to calculate your capital gains and losses, which are reported on Schedule D.