Form 8949 codes

Out of Scope by [line number]:
  • Out of scope items are marked in the table below.

1099-B Transaction Type Codes:

TaxSlayer inserts the appropriate code based upon selections made in the Capital Gains Transaction worksheet.

For reference, the Form 8949 transaction type codes are:

  1. Short-term, covered (i.e. basis reported to IRS)
  2. Short-term, not covered (i.e., basis not reported to IRS)
  3. Short-term, other than A or B
  4. Long-term, covered (i.e. basis reported to IRS)
  5. Long-term, not covered (i.e., basis not reported to IRS)
  6. Long-term, other than A or B

Captial gains worksheet and Form 8949 adjustment column codes

  • Tax slayer inserts one code based upon a drop-down list of adjustment descriptions. Many of the codes listed are OUT OF SCOPE.
  • Multiple codes are allowed if necessary, entered in alphabetical order (e.g. “BT”) however at this time, TaxSlayer only allows one code.
  • If multiple transactions are consolidated on one line and another code is required, select that other adjustment reason and append “-M” to the end of the Description of Property.
Column (f) Code Designation for the adjustment amount in column (g)
B Form 1099-B with incorrect basis.

1099-B code A (reported to the IRS): enter the reported basis in the basis column and an adjustment amount in the adjustment column.

E Broker commission or other adjustment reducing amount received from sale.
H Sale of main home at a gain, must report it, and can exclude some of the gain

L Non-deductible loss from other than a wash sale
M Multiple transactions consolidated from attachments
O Other adjustment not described by another code
T Form 1099-B with incorrect short/long term designation
W Non-deductible loss from a wash sale. OUT OF SCOPE if not clearly identified on a broker statement.
C Disposition of collectibles
Accrued market discount.
N Form 1099-B or 1099-S as a nominee for actual owner
Q Exclusion of some of the gain of qualified small business stock
R Postponement of gain from rollover of QSB stock, stock sold to ESOPs, etc
S Loss from small business stock greater than ordinary loss
X DC zone or qualified community assets exclusion amount