Question
Albert owned 1,000 shares of Behemoth Airline stock with a basis of $30 per share. The stock was purchased on June 10 2011. On Dec
Albert owned 1,000 shares of Behemoth Airline stock with a basis of $30 per share. The stock was purchased on June 10 2011. On Dec 31st 2017, Albert sells: 500 shares to his uncle Seth @ $5 per share 500 shares to his sister @ $5 per share
For form 8949, the transactions are long-term and were not reported to Albert on form 1099. So on the form, you only fill out Part II. The sale to his sister counts as a related party transaction and therefore that loss is limited. Follow the instructions for Part 2 line 2 on where this amount flows to on the Sch D, then complete the schedule D. There are no short term gains/losses so you are completing parts 2 and 3 on Sch D.
Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term transactions, see page 1.
Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (dont worry about checking any box)
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
(F) Long-term transactions not reported to you on Form 1099-B
1
(a) Description of property (Example: 100 sh. XYZ Co.)
(b) Date acquired (Mo., day, yr.)
(c) Date sold or disposed of (Mo., day, yr.)
(d) Proceeds (sales price) (see instructions)
(e) Cost or other basis. See the Note below and see Column (e) in the separate instructions
Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions.
(f) Code(s) from instructions
(g) Amount of adjustment
(h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g)
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