Form 8949 Purpose

The main purpose of Form 8949 is to list gain or loss details from capital asset sales, such as stocks and options.

In tax year 2010 and earlier, there was no Form 8949, and trades were recorded directly on Schedule D. Starting with tax year 2011, the IRS added Form 8949 and changed the reporting of capital gains and losses. Trade details are now reported on Form 8949, while totals go on Schedule D.

Traders and investors are required by law to report every stock and options sale. While most taxpayers will list trades on Form 8949, there are some less common reporting options.