How to create a Form 8949 if the asset was not sold?
On a Form 1099-B, my broker reported that there were losses within a closed-end fund that I am still holding. So I need to create a Form 8949 to report the losses (so they can be added to my capital loss carryover). But the FreeTaxUSA software does not seem to have a way to enter a Form 8949 if no asset has been sold. How can I create the Form 8949?
Answers
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Hello mjross99, and welcome to the FreeTaxUSA Community!
The form 8949 is generated by the software. You will enter the information from the 1099-B into the software on the "Stocks and Investments Sold (1099-B)" section.
You might consider contacting your broker to confirm if the losses are a reportable. Since you are still holding the investment, it might be an unrealized loss for bookkeeping purposes only and not required to be reported on the tax return.
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Thank you for replying to my post!
I could have been more specific: On a Form 1099-B, my broker reports proceeds, as well as a cost basis factor for each proceed, which, when multiplied by my total cost basis, tells me the cost basis of each proceed. If the difference is positive, it is considered a gain, and if negative, then a loss. These figures I report on Form 8949, which get added to my loss carryover. So the losses are definitely reportable in the sense that I must report them to the IRS on Form 8949, despite not selling the asset during the past year.
So how can I create a Form 8949 using the software? This is my first year using FreeTaxUSA, so I'm more accustomed to TurboTax, which allows one to go to a list of forms and start a new one. Is there someplace in FreeTaxUSA that I can see the list of forms and start a new one?
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For more specific guidance, I recommend that you log in to your account and contact support. If you don't have the Deluxe or Pro Support, you may send us your question. Specifically, please include:
a) who issued the 1099-B?
b) how many transactions do you need to enter?
c) was the basis reported to the IRS?This will allow us to see the information that you have already entered into the software and provide guidance. If you have upgraded to either the Deluxe or Pro Support, you may also contact us through the Chat.
