Per IRS Publication 550 Investment Income and Expenses
, page 68:Form 1099-CAP transactions.
If a corporation in which you own stock has had a change in control or a substantial change in capital structure, you should receive Form 1099-CAP, Changes in Corporate Control and Capital Structure from the corporation. Use the Form 1099-CAP to fill in Form 8949. If your computations show that you would have a loss because of the change, do not enter any amounts on Form 8949 or Schedule D (Form 1040) as a result of this transaction.
Report the aggregate amount received shown in box 2 of Form 1099-CAP as the sales price in column (d) of either Part I or Part II Form 8949, whichever applies.
Note that any link in the information above is updated each year automatically and will take you to the most recent IRS version of the document at the time it is accessed.
Capital gains and losses are entered on Form 1099-B in TaxAct, then automatically flow to Schedule D Capital Gains and Losses and/or Form 8949 Sales and Other Dispositions of Capital Assets.
To enter Form 1099-B into the TaxAct program:
- From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click Investment Income to expand the category and then click Gain or loss on sale of investments
- Click Capital gain or loss (Form 1099-B)
- Click Add to create a new copy of the form or click Review to review a form already created
- The program will proceed with the interview questions for you to enter or review the appropriate information.
You will need to enter the property description, date acquired, cost or other basis, date sold, sales proceeds, and any federal income tax withheld.
Note: The 1099-B form you received may or may not report the date acquired or the cost basis. This information is maintained by you and is needed to complete the proper reporting of the transactions on Schedule D.
If you sold stocks, funds, or similar property acquired through several different purchases, you may report the sale on one form and enter "Various" as the date acquired on Schedule D. In this instance, you must indicate if the sale was short-term or long-term gain or loss. If the sale included both short-term and long-term gains or losses, enter the sale on two separate Forms 1099-B. Note: You cannot enter "Various" as the Date Sold.