Glossary

8949 Form

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IRS Form 8949 is a tax form used to report investment short and long-term capital gains and losses. Investors will receive information about their tax lots, capital gains, and capital losses from the brokerage or exchange on form 1099-B. Individuals must fill out Form 8949 if they have any of the following to report: The sale or exchange of a capital asset, gains from involuntary conversions of capital assets other than assets used for business or trade purposes, deferred capital gains, or personal debts.

When filing a joint return, more than one copy of form 8949 may be needed to document the combined transactions of both parties. The totals from all form 8949’s must be reported on Schedule D.

Notice: River does not provide investment, financial, tax, or legal advice. The information provided is general and illustrative in nature and therefore is not intended to provide, and should not be relied on for, tax advice. We encourage you to consult the appropriate tax professional to understand your personal tax circumstances.
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1040 Schedule-D Form
Schedule D is an attachment to IRS individual tax return form 1040, and helps taxpayers calculate their capital gains and losses taxes. The capital gains and losses taxes affect the individual taxpayer's adjusted gross income amount.
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1099-B Form
Form 1099-B is a tax form issued by the Internal Revenue Service. Form 1099-B is sent to individual investors by the broker that handled the transaction to report gains and losses from the sale of stocks, bonds, derivatives, or other securities.
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Capital Gains
Capital gain is the realization of an increase in a capital asset’s value when the asset is sold. Short-term capital gains are the sale of an asset within a year. Long-term capital gains are the sale of an asset after a year or more of holding the asset.
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Capital Losses
A capital loss is the loss incurred when a capital asset decreases in value. A capital loss is realized when an asset is sold for less than the original purchase price. Capital losses can offset capital gains taxes.
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