Entering a Sale of Stock or Digital Asset on Form 8949
- Cassandra Watkins
- Dana Pinkston
This article demonstrates how to add enter stock or crypto currency sales on Form 8949.
Reporting Stock/Digital Asset Sales
Taxpayers who sold a stock or their interest in a digital asset during the tax year must reconcile these sales on their tax return.
Taxpayers may receive a Form 1099-B, 1099-S, 1099-MISC, or a summary from their investment company detailing these transactions.
You cannot simply add the total from the taxpayer’s brokerage statement. If you are not entering the stock or digital asset transactions one by one, you must follow the proper procedures for entering multiple transactions on one line, this includes attaching the binary attachment with all of their brokerage paper work and entering code “M” for multiple in Column F.
For more information regarding entering multiple transactions on one line, please contact CTTS via the call center, support will be unable to provide assistance for stocks over email.
Reporting Stock/Digital Asset Sales
Select Add Form.
Locate and select Form 8949/1099-B. Double-click to add.
Begin by entering a "T" or "S" in the taxpayer/spouse indicator. If it is a joint asset, leave this field blank.
Enter the transaction description code "A-F" (this is on the form the taxpayer provided).
Enter the description of property. This will be the name of the stock sold, such as “Walmart, Coca-cola, etc.”.
Enter the date acquired.
Enter the date sold.
Enter the sales price (this might be labeled proceeds).
Enter the cost basis.
Enter adjustment codes and amount as needed (these will be on the form).
Repeat this process as needed. If a taxpayer has a large number of stock or digital assets, you may be able to utilize the multiple transaction exception and binary attach the brokerage statements to Form 8949.
Need more help? Watch our quick video below...
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