To calculate a capital gain or loss, subtract your cost or other basis from your proceeds, then apply any adjustment required for the transaction. A positive amount is a gain; a negative amount is a loss. The worksheet below helps organize each sale or exchange before you report it on Form 8949 and, where applicable, Schedule D of your U.S. federal income tax return.
Capital gains and losses worksheet
Complete one row for each asset or transaction. Use the Form 8949 and Schedule D instructions for the tax year you are filing; reporting rules and form details can change.
| Worksheet column | What to enter |
|---|---|
| Asset or transaction | Describe the asset sold or exchanged. |
| Date acquired | Enter the acquisition date from your records. |
| Date sold or exchanged | Enter the disposition date shown by your records or applicable tax statement. |
| Proceeds | Use the amount and method directed by the applicable Form 8949 instructions. If you did not receive Form 1099-B, Form 1099-DA, or Form 1099-S, net proceeds generally mean gross proceeds minus selling expenses. |
| Cost or other basis | Enter your substantiated basis, not automatically the original purchase price or a broker-reported amount. |
| Adjustment code and amount | Enter a code and adjustment only if the instructions require one for your transaction. |
| Gain or loss | Calculate proceeds minus basis, taking any required adjustment into account. |
| Holding period | Classify the transaction as short-term or long-term under the applicable instructions. |
Calculate each row
Start with proceeds − basis. If an adjustment applies, enter it according to the Form 8949 instructions and use the resulting amount for the gain-or-loss calculation. For example, proceeds of $1,000 and basis of $700 produce a $300 gain before any required adjustment. A result below zero is a loss.
Determine your proceeds and basis
Proceeds
When you receive Form 1099-B, Form 1099-DA, or Form 1099-S, use the reported proceeds as directed by the current-year instructions. If you received none of these forms, net proceeds generally equal gross proceeds minus selling expenses such as broker fees, commissions, and state or local transfer taxes. Do not substitute a different amount for a reported figure unless the instructions call for an adjustment and you can support it.
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Cost or other basis
For purchased property, basis is usually its cost, including applicable purchase costs such as commissions. Check your records for later changes: improvements can increase basis, while depreciation, nondividend distributions, and stock splits can decrease or otherwise affect it. Basis may also differ from the original purchase price for inherited property, gifts, tax-free exchanges, involuntary conversions, or wash sales.
Keep records that establish acquisition cost and subsequent basis changes. If securities records are missing, contact your broker; the broker may have reported basis on Form 1099-B or Form 1099-DA. A broker statement does not by itself establish that every reported basis or adjustment is correct for your circumstances.
Digital assets
For digital assets, basis generally includes acquisition cost and transaction fees, commissions, transfer taxes, and other acquisition costs. Sales and exchanges are treated under property principles described in the IRS instructions. Use the rules and reporting guidance for the relevant tax year and transaction.
Classify the transaction by holding period
Holding period determines whether a transaction is generally reported as short-term or long-term. Short-term generally means the asset was held for one year or less; certain partnership interests have exceptions, so follow the instructions that apply to the asset. Use the acquisition and disposition dates from reliable records rather than relying only on a broker’s category.
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Form 8949 generally records sales and exchanges of capital assets and reconciles transaction details, including broker or other information-reporting amounts, with figures reported on the return. Part I is for short-term transactions and Part II for long-term transactions. Complete the applicable entries before transferring totals to the relevant Schedule D lines.
Schedule D aggregates capital gains and losses and can include other items, such as capital gain distributions and capital loss carryovers. Some transactions may qualify for an exception to separate Form 8949 reporting, so check the current-year Schedule D instructions rather than assuming every disposition follows the same route.
- Sort worksheet rows into short-term and long-term categories under the applicable instructions.
- For transactions requiring Form 8949, enter the description, dates, proceeds, basis, and any required adjustment and code in the appropriate part.
- Transfer the resulting totals to the corresponding Schedule D lines as instructed.
- Include other Schedule D items that apply to you, such as capital gain distributions or carryovers.
- Check the instructions for any Form 8949 exception that may apply to a transaction before reporting it directly on Schedule D.
Check adjustments before filing
Adjustments can be required to correct an incorrect basis or account for certain disallowed losses, exclusions, or deferrals. The appropriate code and amount depend on the transaction. Do not change proceeds or basis casually: use the applicable Form 8949 and Schedule D instructions and retain records supporting the entry.
For official procedures, use the IRS Instructions for Form 8949, the IRS page About Schedule D (Form 1040), Capital Gains and Losses, and the current-year Schedule D form and instructions available from the IRS. The 2025 Form 8949 instructions and 2025 Schedule D apply to 2025 returns; use the forms for the tax year on the return you are preparing.
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