A taxpayer has 6 separate capital gain transactions.Four of them are long-term and two are short-term transactions.Two of the long-term transactions have box 3 from Form 1099-B checked,one does not have box 3 from Form 1099-B checked,and there was no 1099-B received for one of the long-term transactions.One short-term transaction has box 3 from a 1099-B checked and the other transaction does not have box 3 from a 1099-B checked.How many Form 8949 must the taxpayer complete?
A)1)
B)2)
C)3)
D)4)

Question

Quizplus · Accepted Answer

The taxpayer has six separate capital gain transactions, so they will need to complete at least six lines on Form 8949. However, the fact that some transactions have box 3 from Form 1099-B checked and some do not means that they will need to complete multiple parts of Form 8949.

Specifically, for the transactions with box 3 from Form 1099-B checked, the taxpayer will need to complete Part I of Form 8949. For the transactions without box 3 from Form 1099-B checked, the taxpayer will need to complete Part II of Form 8949.

Therefore, the taxpayer will need to complete Part I for the two long-term transactions with box 3 from Form 1099-B checked, Part II for the one long-term transaction without box 3 from Form 1099-B checked, and Part I for the one short-term transaction with box 3 from Form 1099-B checked. In total, this requires completing three parts of Form 8949.

A Taxpayer Has 6 Separate Capital Gain Transactions