Question

Which of the following statements is false regarding Form 8949 - Sales and Other Dispositions of Capital Assets?

A. The taxpayer uses Form 8949 to report sales and exchanges of capital assets

B. Form 8949 allows the taxpayer and the IRS to reconcile amounts that were reported to him or her and the IRS on Form 1099-B or 1099-S (or substitute statement) with the amounts he or she reports on his or her income tax return

C. If all Forms 1099-B the taxpayer received (and all substitute statements) show basis was reported to the IRS and if no correction or adjustment is needed, the taxpayer must always file Form 8949 and attach a statement of these transactions

D. Corporations and partnerships use Form 8949 to report undistributed long-term capital gains from Form 2439

Answer 1

A.)False

The taxpayers use form 4989 to report sales and Dispositions of capital assets.

B.)True

   Form 8949 is used to reconcile amounts that were reported to you and the IRS on Form 1099-B or 1099-S with the amounts you report on your return.

C.)False.

If all Forms 1099-B (or all substitute statements) the taxpayer received show basis was reported to the IRS and no correction or adjustment is needed, you may not need to file Form 8949.

D.)True.

Corporate and partnership uses form 8949 to report 'Undistributed long-term capital gains from Form 2439'.

Non business bad debts, worthlessness of a security etc. were also reported in the same