Capital Gains and Losses - Transaction Adjustment Codes

The IRS mandates specific adjustment codes for the reporting of capital gain/loss transactions. These adjustment codes are listed on page 8 of the Instructions for Form 8949, along with information explaining the situation each code represents and information regarding how to properly report the adjustment amount in your return.

These adjustment codes are included on Form 8949, which will print along with Schedule D. The adjustment amount will also be listed on Form 8949 and will transfer over to Schedule D. For more information, see the IRS Instructions for Schedule D.

To enter an adjustment code for a transaction in TaxAct®:

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Investment Income to expand the section, then click Gain or loss on the sale of investments
  3. Select Capital gain or loss (Form 1099-B) from the expanded list
  4. Click +Add Form 1099-B to create a new form, or click Review to review or modify a previously created form
  5. Enter the transaction information on the proceeding screens and select the appropriate adjustment code on the screen titled Investment Sales - Adjustment Codes