2011 Schedule D Gets a New Look
The IRS has revamped the 2011 Schedule D for reporting capital gains and losses. As part of the change a new Form 8949 will have to be completed before completing Schedule D. Although still in draft form, the 8949 will require taxpayers to report the normal details of their capital transactions, such as the date of acquisition, date of sale, cost basis and sales price. A separate 8949 will have to be prepared for each different type of transaction and taxpayers will have to indicate if a 1099-B was received and if the 1099-B listed basis information.
The 8949 also includes columns to report adjustments to the gain or loss, including a field for an adjustment code. For example, if you sold your main home at a gain you would report the transaction on Form 8949. If you met the requirements to exclude the gain you would enter the excluded amount and corresponding adjustment code on the 8949.
Once the 8949 has been completed the information is transferred in summary to Schedule D. Click here to see the draft version of the 2011 Form 8949. Click here to see a draft version of the 2011 Schedule D. The IRS will not be issuing separate instructions for each form. Instead, the instructions for completing Form 8949 can be found in the Schedule D instructions. A draft of the 2011 instructions can be found by clicking here.