IRS Update: Federal Forms Changes You Should Know About

Below are changes to some of the 2011 Federal forms that you should be aware of for the 2012 Filing Season.

Schedule D and New Form 8949

Beginning with Tax Year 2011, all capital transactions will now be reported on the new Form 8949 (Sales and Other Dispositions of Other Assets).

Form 8949 has been added because of the new requirement that the basis of stock sold must be reported on Form 1099-B for stock purchased after December 31, 2010.

The following new fields have been added for reporting capital asset sales on Form 8949:

• Transaction type checkbox
• Code field (column b)
• Adjustment field (column g)

Schedule D is now only used to gather all capital gains and losses reported on the various applicable forms and to calculate the total net capital gain or loss for the year.

Click here to read the entire CrossLink Tax Update which includes detailed information on the new fields added on Form 8949 as well as the new fields added to Schedule E and Schedule SE, and the additional questions added to Schedules C, E, and F.