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On Form 8949, Part I, it says You may aggregate all short-term transactions...for which there are no adjustments directly in Schedule D without reporting them in Form 8949.

What does it mean for a short-term transaction to have "no adjustments"?

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Hi Merlin. Please use the "united-states" tag for your U.S. tax questions. Thanks. –  Chris W. Rea Mar 25 at 22:48

2 Answers 2

up vote 4 down vote accepted

Typically that applies if the broker Form 1099-B reports an incorrect basis to the IRS. If the Form 1099-B shows incorrect basis relative to your records, then you can use 8949, column (g) to report the correct basis. The 8949 Instructions provide a brief example. http://www.irs.gov/pub/irs-prior/i8949--2013.pdf

Although you have an obligation to report all income, and hence to report the true basis, as a practical matter this information will usually be correct as presented by the broker. If you have separate information or reports relating to your investments, and you are so inclined, then you can double-check the basis information in your 1099-B.

If you aren't aware of basis discrepancies, then the adjustments probably don't apply to you and your investments can stick to Schedule D.

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Actually, for specific kinds of investments, broker will never report the correct values. E.g.: SLV/GLD trusts etc. –  littleadv Mar 25 at 22:45

In addition to the adjustment type in NL7's answer, there are a host of others. If there are any adjustments, form 8949 is required, if not, the gains can be separated into short and long-term and added together to be entered on Schedule D. Anything requiring an adjustment code in column F of the 8949 requires an entry in column G.

Some other example entries for column F include:

B   Basis is reported incorrectly on the 1099-B (as mentioned above)
T   Whether the gain is Short- or Long-term is reported incorrectly on the 1099-B
W   Whether the sale of the security was considered a wash sale** 
N   Whether you received the amount as a nominee

(see the 8949 instructions for a complete list)

**A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:

  • Buy substantially identical stock or securities,

  • Acquire substantially identical stock or securities in a fully taxable trade,

  • Acquire a contract or option to buy substantially identical stock or securities, or

  • Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA.

(from Pub17)

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