During the year, Allison sold shares of stock. Information about her cost basis and other details about the transaction were reported to her and to the IRS on a Form 1099-B, and no correction or adjustment is needed. How is this transaction reported on her tax return?

The amount of her capital gain or deductible loss is reported directly on page 1 of her Form 1040.

The amount of her capital gain or deductible loss is reported on Schedule 1, Additional Income and Adjustments to Income, then combined with her other sources of additional income (if any) before the total is reported on page 1 of her Form 1040.

The details of the transaction must be reported on Form 8949, Sales and Other Dispositions of Capital Assets. The totals are then carried to Schedule D, Capital Gains and Losses. Finally, the net amount of her capital gain or deductible loss is reported on page 1 of her Form 1040.

Information about the transaction is reported directly on Schedule D, Capital Gains and Losses. The amount of her capital gain or deductible loss is then reported on page 1 of her Form 1040.

Which of the following is an example of a transaction that does not require the filing of Form 8949, Sales and Other Dispositions of Capital Assets? Instead, it may be reported directly on Schedule D, Capital Gains and Losses.

An adjustment is required to reconcile the amount the taxpayer must report on their tax return with the amount reported on their Form 1099-B.

The taxpayer incurred a loss on the sale of a covered security, and a portion of the loss may be carried forward to the next tax year.

The transaction involved the sale or exchange of a noncovered security.

The taxpayer sold or exchanged a capital asset but did not receive a Form 1099-B reporting the transaction.

When reporting information about the sale or exchange of a noncovered security, a broker or custodian is required to provide a taxpayer and the IRS with information about which of the following?

The date the property was acquired.

The date the property was sold or disposed of.

The taxpayer's cost or other basis.

Verification that the taxpayer did not participate in an options strategy that involved covered calls.