“Do I Really Need Form 8949 for My Investments?”

💹 “Do I Really Need Form 8949 for My Investments?” — The 2025 Quick Guide for U.S. Traders

If you traded stocks, ETFs, cryptocurrency, or options in 2025, the IRS likely expects one form from you: Form 8949, Sales and Other Dispositions of Capital Assets.
Many taxpayers assume their brokerage already reports everything, but mismatched data or missing cost basis can easily trigger a notice.


1️⃣ Why You Must File Form 8949

Brokerages send your sales activity to the IRS using Form 1099-B.
Form 8949 is how you align your numbers with theirs — correcting basis, adjusting wash sales, or reporting assets with missing information.

You must file Form 8949 if you had:

  • Any sale of stocks, ETFs, crypto, or mutual funds
  • 1099-B showing “basis not reported to IRS”
  • Crypto-to-crypto trades (even without cash out)
  • Capital loss carryovers you want to claim

After completing Form 8949, totals flow to Schedule D to calculate your net capital gain or loss.

2️⃣ Short-Term vs. Long-Term — The Tax Difference

Every sale goes into one of two buckets:

  • Short-term (1 year or less): taxed at regular income tax rates
  • Long-term (more than 1 year): qualifies for lower capital gains tax rates

Even a one-day difference in holding period can change your tax rate,
making proper classification on Form 8949 essential.

3️⃣ Example: How a Simple Trade Appears on Form 8949

📘 Example: 2025 Trading Activity

• Sold 20 shares of TSLA bought 4 months earlier → $620 gain (Short-term)

• Sold 0.05 BTC held for 14 months → $430 gain (Long-term)

• Sold VOO at a loss → $280 loss

👉 On Form 8949:
– TSLA → Short-term section (Part I)
– BTC → Long-term section (Part II)
– VOO loss → reported in the appropriate holding-period section and later netted on Schedule D

If your losses exceed your gains, up to $3,000 can reduce your taxable income for the year.

▲ Back to Top

“Do I Really Need Form 8949 for My Investments?””의 1개의 생각

  1. 핑백: What Is Form 1098-E?

댓글이 닫혀있습니다.