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

by Intuit•2• Updated 2 months ago

This article will help you generate Form 8949, column (f) for various codes in Lacerte. 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 screen.
    • Screen 17 (Individual)
    • Screen 19 (Partnership)
    • Screen 15 (Corporate)
    • Screen 23 (S-Corporate)
    • Screen 22 (Fiduciary)

Generating the various codes:

Use the table below to select the code you'd like to generate. From there you will be taken to the appropriate steps to generate that code.

Select your code:

BTNHDQXR
WLESCMOY/Z

Code B - Basis reported was incorrect

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Enter the adjustment to basis in the Adjustment to basis if reported incorrectly on Form 1099-B, box 1e field.

Back to table

Code T - Type of gain or loss was incorrect

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Check the box labeled Form 1099-B, box 2 type of gain or loss reported incorrectly.

Back to table

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

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Check the box labeled Received 1099-B or 1099-S as a nominee.

Back to table

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

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Sale of Home section.
  4. Check the box labeled Sale of home (MANDATORY to compute exclusion).
  5. Check the box labeled 2 year use text met (full exclusion), if applicable.

Back to table

Code D - Accrued market discount

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Enter the amount from Form 1099-B, box 1f in Accrued market discount adjustment.

Back to table

Code Q - Qualified small business stock

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Enter a 1 in the 1= qualified small business stock (exclusion or rollover) field.

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 the Dividend screen.
    • Screen 12 (Individual)
    • Screen 16 (Fiduciary) 
  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. 

Back to table

Code X - DC zone or qualified community assets

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Enter an amount or a -1 in the District of Columbia Enterprise Zone or qualified community assets amount excluded (-1 to exclude all) field.

Back to table

Code R - Elect to postpone certain rollover gains

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Locate the QSB Stock subsection.
  5. Enter a 1 in the 1= qualified small business stock (exclusion or rollover) field
  6. Enter an amount or a 1 in the Section 1045 rollover (1=postpone entire gain or enter amount) field.

Back to table

Code W - Nondeductible wash sale loss

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Enter the amount from Form 1099-B, box 1g in the Wash Sale amount disallowed (-1 to disallow all) field.

Back to table

Code L - Other nondeductible loss

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. 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.

Back to table

Code E - Sale expenses not reported elsewhere

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Enter an amount in the Expenses of sale or exchange field.

Back to table

Code S - For certain small business stock losses

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Check the box labeled Section 1244 stock.

Back to table

Code C - Sale of collectibles

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Check the box labeled Collectible (art, stamps, coins, precious metals, etc.)(28% rate).

Back to table

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.

Back to table

Code O - Other adjustments

  1. Go to the Dispositions screen.
  2. Enter the applicable information regarding the sale:
    • Description
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
  3. Scroll down to the Schedule D section.
  4. Enter an amount in the Other adjustment to gain or loss (-1 for all) field.

Back to table

Code Y or Code Z - QOF deferrals

Refer to this article for instructions on reporting a Qualified Opportunity Fund (QOF) transaction.

Back to table

Lacerte Tax 2018Lacerte Tax 2019Lacerte Tax 2020Lacerte Tax 2021Lacerte Tax 2022Lacerte Tax 2023

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