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Adjusting Form 8949 Code

 
Beginning with the 2011 tax year Form 8949 is used to report gains and losses from the sale of most securities. TradeLog applies IRS rules along with custom 1099-B settings in order to determine which category to report each trade on Form 8949. However at times the broker 1099-B may report in a manner different, requiring an override for some trades. The Change 8949 Code function is used to make this adjustment when needed:
 
To adjust Form 8949 code assignment:
 
Note: The determining factor for 8949 categorization is based on the purchase or cost-basis of a security. Therefore, you need to select only the buy position and assign the code. TradeLog will automatically match the corresponding sale and report on the proper 8949 category based on the code you selected for the buy.
  • Find the ticker that needs to be adjusted for using the Find, Ticker command.
     
  • Select the cost basis of the Trade(s) that need to be changed. (See Selecting Multiple Trades for more instructions.)
     
  • Click Edit, Change 8949 Code.
     
  • Select the code to apply from the selection list, or select Clear to clear the code and allow automatic assignment by TradeLog.
     
  • After selecting the code TradeLog will adjust the 8949 Code column for the selected trades and prompt to save records.
 
Which code to use?
 
  • Code A - this is used to force trades onto Form 8949 Category A (long-term trades will be labeled as category D on Form 8949 in 2013 onward). The trade should be reported on the 1099-B and your broker should indicate that the cost basis was reported to the IRS.
 
  • Code B - this is used to force trades onto Form 8949 Category B (long-term trades will be labeled as category E on Form 8949 in 2013 onward). The trade should be reported on the 1099-B and your broker should indicate that the cost basis was NOT reported to the IRS.
 
  • Code C - this is used to force trades onto Form 8949 Category C (long-term trades will be labeled as category F on Form 8949 in 2013 onward). The trade should NOT be reported on the 1099-B. (The trade may be listed on your supplemental section of your 1099-B form.)