1. AARP TAX-AIDE INSTRUCTOR WORKSHOP
CAPITAL GAIN OR LOSS
Bob Kennedy, CoCo-Central

2. Instructor Workshop - Capital Gain or Loss
Publications Used
NTTC Workbook
Instructor Workshop - Capital Gain or Loss

3. Covered and Non-covered Definitions
Covered securities
Stock purchases starting January 1, 2011
Mutual fund purchases starting January 1, 2012
Less complex debt instrument purchases starting January 1, 2014
More complex debt instrument purchases starting January 1, 2016
Non-covered securities
All purchases prior to above dates
Security transfers without basis
Instructor Workshop - Capital Gain or Loss

4. Covered and Non-covered IRS Reporting Requirement
Sale date X
Sales price
Acquisition date
Basis cost
Wash sale disallowed
Instructor Workshop - Capital Gain or Loss

5. Instructor Workshop - Capital Gain or Loss
8949 Codes
A – Short-term covered
B – Short-term non-covered
C – Short-term not on 1099-B
D – Long-term covered
E – Long-term non-covered
F – Long-term not on 1099-B
Instructor Workshop - Capital Gain or Loss

6. Instructor Workshop - Capital Gain or Loss
Adjustment Codes
B – Basis correction
H – Main home sale
L – Non-deductible loss other than code W
O – Other adjustment
T – Short-term/long-term correction
W – Wash sale loss disallowed
Instructor Workshop - Capital Gain or Loss

7. 1099-B (Code A) Workbook Page 106
Instructor Workshop - Capital Gain or Loss

8. TaxSlayer Entry Code A – Top Section
Instructor Workshop - Capital Gain or Loss

9. TaxSlayer Entry Code A - Bottom Section
Instructor Workshop - Capital Gain or Loss

10. Instructor Workshop - Capital Gain or Loss
Form 8949 Code A
Instructor Workshop - Capital Gain or Loss

11. 1099-B (Code E) Workbook Page 107
Instructor Workshop - Capital Gain or Loss

12. TaxSlayer Entry Code E – Top Section
Instructor Workshop - Capital Gain or Loss

13. TaxSlayer Entry Code E - Bottom Section
Instructor Workshop - Capital Gain or Loss

14. Instructor Workshop - Capital Gain or Loss
Form 8949 Code E
Instructor Workshop - Capital Gain or Loss

15. Instructor Workshop - Capital Gain or Loss
8453
IRS only wants detail that supports a code B or E multiple line entry
Don’t send entire broker statement
Instructor Workshop - Capital Gain or Loss

16. Instructor Workshop - Capital Gain or Loss
THAT’S ALL FOLKS!
Questions Comments?
Instructor Workshop - Capital Gain or Loss