Generating Form 8949, column (f) for various codes in ProConnect Tax

This article will help you generate Form 8949, column (f) for various codes in Intuit ProConnect. Form 8949, column (f) reports a code explaining any adjustments to gain or loss in column G. Follow the instructions for the code you need to generate below.

Before you start

• Review the IRS Instructions for Form 8949 for a complete list of the adjustment codes and when to use each.
• Unless otherwise noted, all entries can be found on the Dispositions (Schedule D, 4797, etc.) screen.

Table of contents:

Select a code to jump to the instructions:

Code B - Basis reported was incorrect

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter the adjustment to basis in the Adjustment to basis if reported incorrectly on Form 1099-B, box 1e field.

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Code T - Type of gain or loss was incorrect

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Check the box labeled Form 1099-B, box 2 type of gain or loss reported incorrectly.

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Code N - 1099 received as nominee (individual and fiduciary returns only)

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Check the box labeled Received 1099-B or 1099-S as a nominee.

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Code H - Sold main home at a gain (individual returns only)

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. Click the three dots at the top of the screen and select Sale of Home.
5. Check the box labeled Sale of home (MANDATORY to compute exclusion).
6. Check the box labeled 2 year use text met (full exclusion), if applicable.

If the Sale of Home Exclusion is met, Lacerte won't automatically generate the Sale of Home on the Schedule D or the Form 8949 as it isn't required. To force the reporting of the sale, enter a 2 in the Report on Schedule D: 1= when applicable, 2= force field.

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Code D - Accrued market discount

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter the amount from Form 1099-B, box 1f in Accrued market discount adjustment.

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Code Q - Qualified small business stock

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter a 1 in the 1= qualified small business stock (exclusion or rollover) field.
   • Code Q will also generate from entries in the Income > Dividend Income (1099-DIV) screen, in the field labeled Section 1202 gain (2c).

If you have a code Q generating and there aren't any entries for stock dispositions indicated as qualified small business stock, then you may have an amount entered in the Dividend Income (1099-DIV) screen. You can check this using the following steps:

1. Go to Input Return ⮕ Income ⮕  Dividend 
2. Locate the field labeled (2c) Section 1202 gain.
3. Make sure that there's an amount listed for each dividend income item, as applicable.
   • Leave the amount in the field for each dividend income item (as applicable) if it's accurate.
   • Remove the amount in the field for each dividend income item (as applicable) if it's inaccurate. 

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Code X - DC zone or qualified community assets

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter an amount or a -1 in the District of Columbia Enterprise Zone or qualified community assets amount excluded (-1 to exclude all) field.

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Code R - Elect to postpone certain rollover gains

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Locate the QSB Stock subsection.
6. Enter a 1 in the 1= qualified small business stock (exclusion or rollover) field
7. Enter an amount or a 1 in the Section 1045 rollover (1=postpone entire gain or enter amount) field.

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Code W - Nondeductible wash sale loss

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter the amount from Form 1099-B, box 1g in the Wash Sale amount disallowed (-1 to disallow all) field.

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Code L - Other nondeductible loss

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter an amount or a -1 in the Amount of loss that is nondeductible (-1 to disallow all) field.

If this disposition isn't generating on Form 8949, make sure that this single disposition is generating an overall loss. If not, then it won't flow to Form 8949 with code L.

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Code E - Sale expenses not reported elsewhere

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. Enter an amount in the Expenses of sale or exchange field.

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Code S - For certain small business stock losses

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Check the box labeled Section 1244 stock.

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Code C - Sale of collectibles

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Check the box labeled Collectible (art, stamps, coins, precious metals, etc.)(28% rate).

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Code M - Report multiple transactions on a single row

Refer to this article for instructions on reporting multiple disposition items for Form 8949, code M.

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Code O - Other adjustments

1. Go to Input Return ⮕ Income ⮕  Dispositions (Schedule D, 4797, etc.).
2. Enter the applicable information regarding the sale in the Quick entry grid:
   • Description
   • Date acquired
   • Date sold
   • Sales price
   • Cost or basis
3. Click the blue Details button to expand.
4. From the top of the screen, select Schedule D.
5. Enter an amount in the Other adjustment to gain or loss (-1 for all) field.

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