Case Study 2: Form 8949 and Schedule D

On November 13, Gloria bought 500 shares of XEN, Inc. stock for $20 a share ($10,000 total), plus a $50 commission.

In February, almost four months later, she sold the stock for $8,090 and paid selling expenses of $40. The Form 1099-B from her broker reported a sales price of $8,090 (gross proceeds); Box 1e does not show basis.

Does Gloria have a loss or a gain? Is it short-term or long-term? How does she report it on Form 8949 and Schedule D?

Click here for an explanation.

Gloria has a short-term capital loss.

Click here to review Part I of Gloria's completed Form 8949 and Schedule D, Part I.

Form 8949, Part I:

Box (B) is checked - Short-term gains and losses (Form 1099-B, box 1e does not show basis)

Column (d) shows the $8,090 sales price her broker reported on Form 1099-B as gross proceeds (without subtracting selling expenses)
Column (e) shows the adjusted basis (purchase price of $10,000 plus commission expense of $50 and selling expenses of $40)
Subtotals from Form 8949, page 1, are carried over to Schedule D
Gain or loss is calculated on Schedule D in aggregate

Schedule D, shows the net short-term loss.

Income — Capital Gain or Loss Workout

Form 8949 and Schedule D

Case Study 2: Form 8949 and Schedule D