Form 8949 and Schedule D Changes for 2013

First is a minor graphical change in the boxes on the Form 8949.  Formerly Part I (short-term) and Part II
(long-term) both had boxes A, B, and C.  Now IRS has changed the Part II (long-term) boxes to be D, E, and F.  Presumably this will help avoid confusion.

Second are two new lines on Schedule D.  These are lines 1a (short-term) and 8a (long-term).  The line says “Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).  However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b.”  Since IRS already has the sales price, basis, gain, and short-term/long-term, reporting the details on the Form 8949 is to some extent redundant, therefore IRS is saying we can just report the total of the proceeds, costs, and gains from these Form 1099-B’s that report all three items to IRS.

Third is the “Available Upon Request” option.  In past years IRS has required each individual Form 8949/Schedule D sale to be reported on a separate line.


For 2012 IRS permitted Form 1120S, 1065, and 1065-B filers who had more than five transactions to enter summary totals as one entry for all short-term sales and one entry for all long-term sales and enter the phrase “Available upon request” in the DESCRIPTION column.  The Date acquired and the Date sold columns are left blank.  The total of the Proceeds, Cost, and Adjustments are entered in their respective columns.  The code M and any other codes that apply are entered in the Code column.

Now beginning with 2013 income tax returns, Form 1040 filers (individuals) who have more than five transactions will be able to use this “Available Upon Request” on the Form 8949 instead of requiring taxpayers to report each separate individual transaction.  Again the Date acquired and the Date sold columns are left blank.  The total of the Proceeds, Cost, and Adjustments are entered in their respective columns.  The code M and any other codes that apply are entered in the Code column.

Example reporting:  Donald has 50 individual security sales during the year.  We are going to assume they are all long-term sales just to keep this example simple.  Sales #1-#30 have basis reported to IRS.  Sales #31-#50 do not have basis reported to IRS.  It appears Donald has three options to report these sales.

Option #1 – Report each of Sales #1-30 as separate transactions on Form 8949, Part II, with the code D (basis reported to IRS) and ALSO Sales #31-#50 as separate transactions on Form 8949, Part II, with the code E (no basis reported to IRS).

Option #2 – Report the total of Sales #1-#30 on Schedule D, line 8a.  Report each of Sales #31-50 as separate transactions on Form 8949, Part II, with the code E (no basis reported to IRS).

Option #3 – Report one entry on Form 8949, Part II, with a description of “Available upon Request and the code M (and any other applicable codes).”

-This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals