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CCH Axcess Tax

8949 Code

Enter all applicable codes for this transaction. If using multiple codes, net the adjustment amounts together and enter the net amount in "Adjustment - override." These entries carry to Form 8949.

• If the basis shown on 1099-B is incorrect and the 1099-B basis was reported to the IRS (8949 types A and D), enter the correct basis amount in "correct 1099-B basis". Enter the basis shown on 1099-B in "Cost or Other Basis." "B" will print in column (f) and an adjustment will be made in column (g) equal to the difference between the correct basis and the basis shown on 1099-B.

  If the basis shown on 1099-B is incorrect and the 1099-B basis was not reported to the IRS (8949 types B and E), enter the correct basis amount in "Cost or Other Basis". "B" will not print in column (f) and no adjustment will be made in column (g).

• If you disposed of collectibles, utilize "Term Code" input of "M." "C" will print in column (f). "8949 Code" of "C" may also be used. However, the collectible gain will not be taxed with a maximum rate of 28% unless "Term Code" input is utilized.
• Enter "D" if a market discount is present. "D" will print in column (f). Basis will not be automatically increased and income will not be automatically included in interest income. If the choice is made to increase basis, increase the "Cost or Other Basis" input accordingly. If income needs to be included as interest income, a separate interest income entry is required. A negative "Adjustment - override" entry is required to be made for the amount of income that you are including as interest income.
• Enter "E" if selling expenses or option premiums are not reflected on the statement received. Enter the difference between the proceeds reported and the proceeds less expenses in "Adjustment - override." "E" will print in column (f) and an adjustment will be made in column (g) for the amount of the difference.
• Enter "L" if the loss is personal or otherwise non-deductible. "L" will print in column (f) and a positive adjustment will be made in column (g) for the amount of the non-deductible loss.
• Enter "M" if making a summarizing entry. "M" will print in column (f).
• Enter "N" if 1099-B was received as a nominee. "N" will print in column (f) and an adjustment will be made in column (g) to offset the gain or loss.
• Enter "O" if making an other adjustment. Enter the amount of the other adjustment in "Adjustment - override." "O" will print in column (f) and an adjustment will be made in column (g) for the amount of the other adjustment.
• If you can exclude part of the gain from the sale or exchange of qualified small business stock, utilize "Term Code" input of "W", "X", "Y", or "Z." "Q" will print in column (f) and a negative adjustment will be made in column (g) for the amount of the exclusion. This should be a separate entry and not included in a summarizing transaction.
• Enter "R" if electing to exclude the gain under rollover rules. "R" will print in column (f) and a negative adjustment will be made in column (g) for the amount of rolled over gain.
• If you have Section 1244 stock, enter those on the Gains and Losses worksheet > Business Property, Casualties and Theft section with a Property Code of "1244." The amount able to be reported as ordinary will be reported on Form 4797. The amount required to be reported as capital will be reported on Form 8949 with an adjustment code of "S" and a negative adjustment equal to the amount recognized as ordinary.
• Enter "T" if the type of gain or loss shown on 1099-B is incorrect. "T" will print in column (f).
• Enter "W" for a wash sale loss. "W" will print in column (f) and a positive adjustment will be made in column (g) for the amount of the non-deductible loss. If a portion of the loss is deductible, enter the amount of non-deductible loss in "Adjustment - override" as a positive amount. If multiple codes are desired, enter the net amount of ALL desired adjustments in "Adjustment - override"
• Enter "X" if electing to exclude the gain of a DC Zone or Qualified Community Asset. "X" will print in column (f) and a negative adjustment will be made in column (g) for the amount of excluded gain.
• If you have a QOF Deferred Short-Term Gain or QOF Deferred Long-Term Gain entered and trigger a selling even by entering a date sold, sales, price, etc. then the appropriate gain will be recognized and "Y" will print in column (f).
• Enter "Z" if deferring a gain because it was invested a Qualified Opportunity Fund. Also, enter the name of the Qualified Opportunity Fund as a description and its ID number in Federal ID Number. "Z" will print in column (f) and a negative adjustment will be made in column (g) for the amount of deferred gain. Columns (b) - (E) will be left blank. This should be a separate entry and not included in a summarizing transaction. The amount of deferred gain should be limited to the amount that's being taxed at capital gains rates. Note: Per IRS instruction, the gain that was reinvested in a QOF should be reported as it normally would have been on Schedule D, 4797, 6252, 6781, or 8824.
• If you can exclude some or all of the gain from the sale of your home, utilize the Sale of Your Home worksheet. "H" will print in column (f) and a negative adjustment will be made in column (g) for the amount of excluded gain. Selling expenses will be reported on Form 8949, column (g) as a negative adjustment with an adjustment code of "O."
• If you received 1099-S and the proceeds were not reduced by selling expense, utilize the Sale of Your Home worksheet > Gross proceeds reported on Form 1099-S. "E" will print in column (f) and a negative adjustment will be made in column (g) to reduce proceeds by the selling expenses.
• If you received 1099-S as a nominee, utilize the Sale of Your Home worksheet > Form 1099-S received as a nominee. "N" will print in column (f) and a negative adjustment will be made in column (g) to offset the gain.
• If a "Suspended Loss Carryover" and / or a "At-Risk Carryover" is associated with this transaction, a negative adjustment will be made in column (g) for the amount of the carryover with an adjustment code of "O" in column (f).
• If this transaction results in a loss and a portion of that loss is disallowed due to passive activity, at-risk, or basis rules then a positive adjustment will be made in column (g) for the amount of the disallowed loss with an adjustment code of "L" in column (f).

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