Vanguard mutual fund and brokerage investors
2016 Form 1099-B instructions
A guide to reporting investment capital gains and losses from your 1099-B on your tax return (IRS Form 1040 or 1040A)
When you’ll receive your Forms 1099-B
How to access your tax forms
Vanguard will send you a 1099-B each year that you have investment
capital gains or losses in your nonretirement accounts.
Tax forms for your Vanguard account will be posted online at
vanguard.com. You’ll find your forms in your personal tax center
as soon as they’re available. Simply log on to your account, and
from the menu, choose My Accounts and select Tax center. Visit
vanguard.com/taxcenter for a full listing of tax forms and their
anticipated availability.
•
For mutual fund accounts, the form lists sales, exchanges,
and redemptions.
•
For brokerage accounts, it reports sales, mergers, bond maturities,
and aggregate profits, as well as losses on regulated futures contracts.
•
Adjusted cost basis for sales of “covered” securities is reported to
both you and the IRS. We’re not required to report cost basis to the
IRS for “noncovered” securities—only the gross proceeds from any
sales of those securities. See the table on page 2 for more information.
To get an email each time a tax form is ready, sign up at
vanguard.com/edelivery.
Forms will be available on the following dates:
Type of nonretirement account
Date available
Mutual fund only
End of January (except
Vanguard REIT Index
Fund,* which is available
in mid-February)
Brokerage**
End of February
*Real estate investment trusts (REITs) generally can’t calculate their taxable earnings until
after the end of the tax year. For this reason, we request an extension from the IRS each
year to mail completed 1099-Bs for the REIT Index Fund.
**For brokerage accounts, you’ll receive a separate statement with tax forms.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC.
Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
1
Cost basis information reported to you
Type of holding
Covered
Stocks*
Acquired
Generally,
on or after
acquired before
January 1, 2011 January 1, 2011
Exchange-traded funds (ETFs)
organized as unit investment
trusts (UITs)*
Vanguard mutual funds and
other funds (excluding money
market funds)
Noncovered
Acquired
Generally,
on or after
acquired before
January 1, 2012 January 1, 2012
ETFs organized as regulated
investment companies other than
UITs, such as Vanguard ETFs®
Most options
More complex bonds†
Certain options involving
more complex bonds
For mutual fund accounts, your 1099-B lists your account sales,
exchanges, and redemptions. For brokerage accounts, your 1099-B
lists your sales, mergers, bond maturities, and aggregate profits, as
well as losses on regulated futures contracts. If you sold shares from
your nonretirement Vanguard mutual fund and/or brokerage account
in 2016, you may have realized a capital gain or loss that must be
reported on IRS Form 8949 and on Form 1040, Schedule D.
To complete Form 8949 and Schedule D, you must report your gross
proceeds and cost basis, your holding period, and your gain or loss. The
gross proceeds from the sale will appear on your 1099-B, along with
instructions on how to calculate and report the gain or loss on Form
8949 and Schedule D.
You must report sales of covered and noncovered shares
Stocks acquired through a dividend
reinvestment plan (DRIP)
Less complex bonds**
How to report capital gains and losses
Acquired
Generally,
on or after
acquired before
January 1, 2014 January 1, 2014
Acquired
Generally,
on or after
acquired before
January 1, 2016 January 1, 2016
***If your stock or ETF organized as a UIT is part of a DRIP, it isn’t considered covered unless
you acquired it on or after January 1, 2012. If you’re not sure whether this applies to your
ETF, check with your issuer.
***Generally, these are bonds and other debt obligations with fixed yield and maturity dates.
†††Generally, these are bonds and other debt obligations without fixed yield and maturity dates.
You’re responsible for reporting your cost basis information on Form 8949
and Form 1040, Schedule D, for all shares sold, whether they’re covered
or noncovered. For covered shares, in most cases you’ll need to ensure
that the information you report on Form 8949 matches what Vanguard
reports to the IRS on your 1099-B. (You may, however, modify the basis
further if there are any adjustments we haven’t made.) For noncovered
shares, you may make any additional adjustments to the basis before you
record them on Form 8949, as we didn’t report this basis to the IRS.
Regardless of whether the shares are covered or noncovered, it’s
important to verify the information against your own records when
calculating gains or losses for tax-reporting purposes.
Net short-term capital gains are taxed at ordinary rates; net long-term
capital gains are taxed at a preferential rate.
How to choose a cost basis method
For mutual fund accounts, Vanguard uses the average cost method to
arrive at an average cost for all noncovered fund shares held in your account
up to and including the redemption date. For covered mutual fund shares,
you may choose a different method by notifying us in writing (electronically
or by mail) so that we’ll apply that method to any future share redemptions.
For brokerage accounts, Vanguard uses first in, first out (FIFO) as the
default cost basis method for sales of securities other than mutual funds.
2
However, depending on your tax situation, it may be more beneficial for
you to choose the specific identification (SpecID) method for certain
lots. At the time of sale, you’ll have the option to choose between FIFO
and SpecID.
Adjustments to cost basis
We’re required to make adjustments to the initial cost basis of covered
securities acquired in an account. We’ll adjust the basis of securities for
commissions and transfer taxes related to the acquisition of the security
and for any organizational actions reported by the issuer. We’ll also adjust
the basis of a security issued by a regulated investment company (RIC)
or REIT that has undistributed long-term capital gains during the year.
We generally won’t adjust for taxes paid on gifts or for transactions,
elections, or other events occurring outside the account.
Wash sales: Under IRS tax rules, the deduction of a loss on a wash sale is
disallowed. A wash sale occurs when an individual sells or trades a security
at a loss and buys a substantially identical stock or security within 30 days
before or after the sale. The amount of loss that’s disallowed because of
a wash sale is added to the basis of the acquired security.
If both the purchase and sale of an identical security (a security with the
same CUSIP number) occur in the same account, Vanguard will adjust the
basis of securities held in the account for disallowed losses due to wash
sales. Vanguard won’t make the adjustment if a wash sale occurs as a
result of:
The purchase of a substantially identical security that isn’t an
identical security.
• A purchase that occurs in a different account than the sale.
•
Nondividend distributions (return of capital): If you receive a nondividend
return of capital distribution, for the purpose of calculating the gain or loss
once the security is sold, Vanguard will adjust your cost basis by the amount
of the nontaxable distribution.
If the return of capital exceeds your adjusted basis, you generally must
recognize any excess as either a long- or short-term capital gain on Form
8949, depending on your holding period. We don’t report return of capital
that exceeds your basis on your 1099-B.
How Vanguard’s 1099-B is organized
As indicated below, your 1099-B has up to five separate sections to identify
whether the cost basis for a particular transaction is reported to you and the
IRS, reported only to you, or not available. Each section is included on your
1099-B only if it’s relevant to the activity in your account.
Section
Where to report
Short-term transactions
for which basis is reported to
the IRS.
Box 2 is labeled “Short-term,” and Box 3
is labeled “Basis reported to IRS.”
Report on Form 8949, Part I, with Box A checked.
Box 2 is labeled “Short-term,” and Box 5 is labeled
Short-term transactions for
which basis is not reported to “Noncovered security.” The information in Boxes
1b, 1e, 1g, and 2 reflects Vanguard’s records
the IRS.
and won’t be reported to the IRS. You’re solely
responsible for the recordkeeping and accuracy of
this information.
Report on Form 8949, Part I, with Box B checked.
Long-term transactions for
which basis is reported to
the IRS.
Box 2 is labeled “Long-term,” and Box 3 is
labeled “Basis reported to IRS.”
Report on Form 8949, Part II, with Box D checked.
Box 2 is labeled “Long-term,” and Box 5 is labeled
Long-term transactions for
which basis is not reported to “Noncovered security.” The information in Boxes
1b, 1e, 1g, and 2 reflects Vanguard’s records
the IRS.
and won’t be reported to the IRS. You’re solely
responsible for the recordkeeping and accuracy of
this information.
Report on Form 8949, Part II, with Box E checked.
Transactions for which basis
is not reported to the IRS and
for which short-term or longterm determination is unknown
(to Vanguard).
You must determine if short-term or long-term
and report on Form 8949, Part I, with Box B
checked, or on Form 8949, Part II, with Box
E checked.
You’ll need to review your 1099-DIV, Box 3, to determine if any distributions
represent a return of capital.
3
Example: How to report a sale of shares
purchased over time
In the example below, you’ve purchased 500 shares of Vanguard 500
Index Fund over time. You then sell all 500 shares in one transaction.
We must report the sale on your 1099-B in the format described on
page 3, and you must report it to the IRS on Form 8949 and on
Schedule D in the appropriate sections.
Where to enter information for gains/losses
Use the appropriate 1099-B, your records, and the instructions below to
complete IRS Form 8949 and Schedule D for short-term covered securities
and/or long-term noncovered securities. The letters below, and the
corresponding letters in the images on pages 5 and 6, will help you
determine where to enter data from your 1099-B to Form 8949 and
Schedule D. The sample forms used in this brochure are for illustration only.
Enter the details of each transaction on a separate line of Form 8949
(see the actual form for more detailed instructions and for exceptions).
Use as many Forms 8949 as needed.
Transaction QuantityDate
Buy
3001/2/2009
Long-term noncovered:
•R
eported to you on your 1099-B
A Description of property. Enter
F
Accrued market discount.
Enter any adjustments to gain
or loss shown on your 1099-B,
Box 1f.
G
Wash sale loss disallowed.
Enter any adjustments to gain
or loss shown on your 1099-B,
Box 1g.
H
Gain/Loss. Enter the amount
reported to you under the Gain/
Loss column on your 1099-B.
the description shown on your
1099-B, Box 1a.
under Long-term transactions.
•R
eported to the IRS on Form 8949,
Part II with Box E checked.
B
Buy
1003/3/2016*
Short-term covered:
•R
eported to you on Form 1099-B
under Short-term transactions.
Buy
1004/4/2016*
Sell
50011/3/2016
•R
eported to the IRS on Form 8949,
Part I with Box A checked.
*A sale that represents multiple acquisition dates should be reported as “various” in
C
Date acquired. Enter the date
you purchased your shares shown
on your 1099-B, Box 1b.*
Date sold. Enter the date of
the sale or exchange shown on
your 1099-B, Box 1c.
D Proceeds. Enter the value
reported to you on your 1099-B,
Box 1d.
column (b) on Form 8949.
E
Cost or other basis. Enter
the value shown on your
1099-B, Box 1e, if available.
Otherwise, use records such
as statements, transaction
history, and tax returns to
obtain cost information.
After subtotaling columns (d),
(e), and (g), populate column
(h) with this amount on Form
8949, then transfer the figures
to those same columns on
Schedule D.
4
Example: How to report a sale of mutual fund shares
Short-term covered securities
Long-term noncovered securities
Form
1099-B
IMPORTANT TAX DOCUMENT
RECIPIENT'S identification number: XXX-XX-1234
SAMPLE SHAREOWNER
PO BOX 2600
VALLEY FORGE PA 19482-2600
Vanguard
Contact Info: 800-662-2739
2016 Form 1099-B
Recipient
Account
number
Stock or other
symbol
CUSIP
number
500 INDEX FUND INV
23-1999755
PHONE EXCH TO PRIME MM
200.000
A
922908108
VFINX
11/03/2016
A
C
B
Federal
State tax
income tax
withheld
withheld
Gain / Loss
(Box 4)
(Box 16)
Applicable check box on Form 8949: A
Reported to IRS: Gross proceeds (Box 6)
500 INDEX FUND INV
32,424.00
D
0.00
E
▶
▶
0.00
3,846.00
G
0.00
A
Form
8949
OMB No. 1545-0074
2016
Attachment
Sequence No. 12A
File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.
SAMPLE SHAREOWNER
✔
(b)
Date acquired
(Mo., day, yr.)
200 sh. 500 Index Fund Inv
Schedule
D
Various
(c)
Date sold or
disposed of
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
11/03/2016
SCHEDULE D
(Form 1040)
32,424.00
Department of the Treasury
Internal Revenue Service (99)
SAMPLE SHAREOWNER
Part I
Attachment
Sequence No. 12
Your social security number
Name(s) shown on return
XXX-XX-1234
Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
(e)
Cost
(or other basis)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 1b .
1b Totals for all transactions reported on Form(s) 8949 with
Box A checked . . . . . . . . . . . . .
2 Totals for all transactions reported on Form(s) 8949 with
BoxAdd
B checked
. . . (d),. (e),. (g),. and
. (h). (subtract
. . . .
the amounts.in columns
2 Totals.
Enter each total
here and
your with
3negative
Totalsamounts).
for all transactions
reported
on include
Form(s)on8949
Schedule D, line 1b (if Box A above is checked), line 2 (if Box B
Box C checked . . . . . . . . . . . . .
above is checked), or line 3 (if Box C above is checked) ▶
36,270.00
32,424.00
3,846.00
.
.
.
.
.
.
.
.
.
.
.
C
B
D
E
0.00
0.00
28,194.00
G
0.00
H
2016
Sequence No. 12
(e)
Adjustments
Subtract column (e)
(b)
(c)
(d)
Date8949
sold orwith Proceeds
1b Totals
for all transactions
reported
on Form(s)
Description
of property
Date acquired
disposed of
(sales price)
(Example:
100 sh. XYZ
Box
A checked
. Co.)
. . . (Mo.,
. . day,
. yr.). .(Mo.,. day,
. yr.)
. . (see instructions)
2 Totals for all transactions reported on Form(s) 8949 with
Box B checked . . . . . . . . . . . . .
3 Totals for all transactions reported on Form(s) 8949 with
300 sh.
500CIndex
Fund Inv
54,405.00
Box
checked
. . . . 01/02/2009
. . . . 11/03/2016
. . . . .
Schedule
D
(h)
Gain or (loss).
Subtract column (e)
from column (d) and
combine the result
with column (g)
Cost or other basis.
See the Note below See the separate instructions.
and see Column (e)
(f)
(g)
in the separate
Code(s) from
instructions
Amount of
instructions
adjustment
26,211.00
28,194.00
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
Part II
Page 1 of 2
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
to gain or loss from
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 8b .
8b Totals for all transactions reported on Form(s) 8949 with
Box D checked . . . . . . . . . . . . .
9 Totals for all transactions reported on Form(s) 8949 with
Box E checked . . . . . . . . . . . . .
54,405.00
26,211.00
10 Totals for all transactions reported on Form(s) 8949 with
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
12 Schedule
Net long-term
orD(loss)
partnerships,
S corporations,
estates, and trusts from Schedule(s) K-1
D, line 8bgain
(if Box
abovefrom
is checked),
line 9 (if Box
E
28,194.00
11
12
above is checked), or line 10 (if Box F above is checked) ▶
Net short-term
or (loss)
from
S corporations, estates,
trusts from
For5Paperwork
Reductiongain
Act Notice,
see your
tax partnerships,
return instructions.
Cat. No.and
37768Z
.
26,211.00
Note:
If you checked
Box D aboveSee
but the
reported to. the
to the IRS, and enter an
13 Capital
gain distributions.
thebasis
instructions
. IRS
. was
. . incorrect,
. . . enter
. .in column
. . .(e) .the. basis
. .as reported
.
13
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
4 Short-term
gain
Form
and
(loss) from
Formsfor
4684,
and
. the adjustment.
4
adjustment
in column
(g) from
to correct
the6252
basis.
Seeshort-term
Column (g) gain
in theor
separate
instructions
how 6781,
to figure
the8824
amount of
Schedule(s) K-1 .
54,405.00
Form 8949 (2016)
Attachment Sequence No. 12A
Page 2
OMB No.number
1545-0074
Social security number or taxpayer identification
SCHEDULE
D Name and SSN or taxpayer identification no. not required if shown on other side
Name(s) shown on return.
Capital
Gains
and
Losses
(Form
1040)
Sample Shareholder
xxx-xx-1234
(a)
2016
Attach to Form 1040 or Form 1040NR.
▶ Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
01/02/2009
(D) Long-term
transactions
reportedreported
on Form(s)
1099-B
showing
basis was reported to the IRS (see Note above)
(keep for
your records)
1a Totals
for all short-term
transactions
on Form
✔ (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
1099-B for which basis was reported to the IRS and for
(F) Long-term
not (see
reported
to you on Form 1099-B
which
you have transactions
no adjustments
instructions).
Adjustment, if any, to gain or loss.
However, if you choose to report all these transactions
1
If you enter an amount in column (g),
(e)
on Form 8949, leave this line blank and go to line 1b .
enter a code in column (f).
Page 1 of 2
OMB No. 1545-0074
▶
00000012344
11/03/2016
(d)
3,846.00
Capital Gains and Losses
VFINX
Federal
State tax
income tax
withheld
withheld
Gain / Loss
(Box 4)
(Box 16)
Applicable check box on Form 8949: E
Reported to IRS: Gross proceeds (Box 6)
lines
below.
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must
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below.
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is a trademark
American Bankers Association line 2, column (g)
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
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adjustment
36,270.00
A
922908108
(Box 15)
Your
socialFor
security
number
Transactions involving capital assets you held more than 1 year are long
term.
short-term
see page 1.
xxx-xx-1234
Note:
You
may
aggregate
all
long-term
transactions
reported
on
Form(s)
1099-B
showing
basis
was
reported
Part I
Short-Term Capital Gains and Losses—Assets Held One Year or Less
to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line
8a;
you
aren't
required
to
report
these
transactions
on
Form
8949
(see
instructions).
(g)
(h)
Gain
or (loss)
See instructions for how to figure the amounts to enter on the
(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
(C) Short-term transactions not reported to you on Form 1099-B
(a)
Description of property
(Example: 100 sh. XYZ Co.)
Wash sale
loss
disallowed
(Box 1g)
transactions,
Sample Shareholder
Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term
transactions, see page 2.
Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was
reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on
Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions).
1
300.000
no.
State name
(Box 14)
Name(s)
shown on
return
Part II
Long-Term.
For securities sold that were acquired on a variety of dates, Box 1b may be blank
This is important tax information and is being furnished to the Internal Revenue Service (except as indicated). If you are required to file a return, a negligence penalty or other sanction may be imposed on you if
this income is taxable and the IRS determines that it has not been reported. You are ultimately responsible for the accuracy of your tax return. Please Note: Each specific fund name, NOT simply Vanguard, must be
reported along with the related tax information on Form 1040, Schedule D. This applies to Form 1099-B. CUSIP® is a trademark of American Bankers Association
records)
You must check Box A, B, or C below. Check only one(keep
box.forIfyour
more
than one box applies for your short-term transactions,
complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page
for one or more of the boxes, complete as many forms with the same box checked as you need.
Stock or other
symbol
State
identification
▶ Attach
Form
10401099-B
or Form
Before you check Box D, E, or F below, see whether you
receivedtoany
Form(s)
or1040NR.
substitute statement(s) from your broker. A substitute
to the
IRS by your
Attachment
XXX-XX-1234
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your
broker and may even tell you which box to check.
Part I
P.O. Box 2600
Valley Forge, PA 19482 - 2600
▶ Information
D andwill
itsshow
separate
instructions
at www.irs.gov/scheduled.
statementofwill
the same
information asabout
FormSchedule
1099-B. Either
whether
your basisis(usually
your cost) was reported
Department
thehave
Treasury
▶ Use
Internal
Service
brokerRevenue
and may
even(99)
tell you which box
to check.
Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
Social security number or taxpayer identification number
Name(s) shown on return
23-1999755
PHONE EXCH TO PRIME MM
H
Information about Form 8949 and its separate instructions is at www.irs.gov/form8949.
CUSIP
number
Recipient
Account
number
Cost or other
Date sold or
Date
Transaction Description
Quantity sold
basis
disposed
acquired
Proceeds
(Box 1c)
(Box 1b)
(Box 1d)
(Box 1e)
Long-term transactions for which basis is not reported to the IRS-- Report on Form 8949, Part II, with Box E checked.
Type of gain or loss (Box 2): Long-term
Noncovered security (Box 5) X
00000001234
36,270.00
PAYER'S
federal
identification
number
Description of property (Box 1a)
Fund Name
no.
(Box 15)
Wash sale
loss
disallowed
(Box 1g)
Sales and Other Dispositions of Capital Assets
Department of the Treasury
Internal Revenue Service
2016 Form 1099-B
Proceeds From Broker and Barter Exchange Transactions
Copy B For Recipient
OMB No. 1545-0715
State
identification
State name
(Box 14)
Cost or other
Date sold or
Date
Transaction Description
Quantity sold
basis
disposed
acquired
Proceeds
(Box 1c)
(Box 1b)
(Box 1d)
(Box 1e)
Short-term transactions for which basis is reported to the IRS-- Report on Form 8949, Part I, with Box A checked.
Type of gain or loss (Box 2): Short-term
Basis reported to IRS (Box 3) X
8949
SAMPLE SHAREOWNER
PO BOX 2600
VALLEY FORGE PA 19482-2600
Vanguard
Contact Info: 800-662-2739
Copy B For Recipient
OMB No. 1545-0715
PAYER'S
federal
identification
number
Description of property (Box 1a)
Fund Name
Form
IMPORTANT TAX DOCUMENT
RECIPIENT'S identification number: XXX-XX-1234
P.O. Box 2600
Valley Forge, PA 19482 - 2600
Proceeds From Broker and Barter Exchange Transactions
3
Form
8949
Form
1099-B
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
Form 8949 (2016)
14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 11338H
14 (
15
Form 8949 (2016))
5
Schedule D (Form 1040) 2016
Example: How to report a sale of stock shares
Short-term covered securities
Long-term noncovered securities
Form
1099-B
Form
1099-B
IMPORTANT TAX DOCUMENT
RECIPIENT'S identification number: XXX-XX-1234
Vanguard Brokerage
Account number: 12345678
IMPORTANT TAX DOCUMENT
RECIPIENT'S identification number: XXX-XX-1234
2016 Form 1099-B
Description of property
(Box 1a)
200.00000
459200101
11/03/2016
Total
A
Form
8949
A
Form
C
8949
Department of the Treasury
Internal Revenue Service
B
Federal
State
income tax
identification
State
withheld
no.
name
(Box 15)
(Box 4)
(Box 14)
Applicable check box on Form 8949: A
Reported to IRS: Net proceeds (Box 6)
Gain / Loss
32,424.00
36,270.00
32,424.00
D
INTL BUSINESS MACHS CORP
0.00
E
F
3,846.00
0.00
0.00
3,846.00
0.00
0.00
G
▶
▶
300.00000
A
OMB No. 1545-0074
2016
Information about Form 8949 and its separate instructions is at www.irs.gov/form8949.
Form
8949
Attachment
Sequence No. 12A
File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.
Sample Shareholder
xxx-xx-1234
200 sh. IBM Corp.
Schedule
D
SCHEDULE D
(Form 1040)
Various
(d)
Proceeds
(sales price)
(see instructions)
11/03/2016
32,424.00
2016
Attach to Form 1040 or Form 1040NR.
▶ Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
Department of the Treasury
Internal Revenue Service (99)
Sample Shareholder
Part I
Attachment
Sequence No. 12
Your social security number
Name(s) shown on return
xxx-xx-1234
Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from
Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss)
Subtract column (e)
from column (d) and
combine the result with
column (g)
1a Totals for all short-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 1b .
1b Totals for all transactions reported on Form(s) 8949 with
Box A checked . . . . . . . . . . . . .
2 Totals for all transactions reported on Form(s) 8949 with
Box B checked . . . . . . . . . . . . .
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
3negative
Totalsamounts).
for all transactions
reported
on include
Form(s)on8949
Enter each total
here and
your with
Schedule
line 1b (if Box
Box CD,checked
. A. above
. .is checked),
. . . line
. 2. (if.Box. B . .
above is checked), or line 3 (if Box C above is checked)
36,270.00
32,424.00
D
E
3,846.00
G
H
▶
Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
4
adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
For Paperwork Reduction Act Notice, see your tax return instructions.
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . Cat.
. No.
. 37768Z
. . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
5
H
Form 8949 (2016)
Attachment Sequence No. 12A
Page 2
OMB No. 1545-0074
SCHEDULE
D
Social security number or taxpayer identification number
Name(s) shown on return. Name and SSN or taxpayer identification
no. not required
if shown onand
other side
Capital
Gains
Losses
(Form 1040)
SAMPLE SHAREOWNER
XXX-XX-1234
2016
Your social security number
(D) Long-term
transactions
reportedreported
on Form(s)
1099-B showing basis was reported to the IRS (see Note above)
1a Totals
for all short-term
transactions
on Form
for which
basis was reported
IRS and
for showing basis wasn't reported to the IRS
✔1099-B
(E) Long-term
transactions
reported to
onthe
Form(s)
1099-B
which
you have transactions
no adjustments
instructions).
(F) Long-term
not (see
reported
to you on Form 1099-B
However, if you choose to report all these transactions
Adjustment, if any, to gain or loss.
1 on Form 8949, leave this line blank and go to line 1b .
If you enter an amount in column (g),
(e)
(c)
OMB No. 1545-0074
▶
G
(d)
(e)
Adjustments
Subtract column (e)
lines below.
You must check Box D, E, or F below. Check only one box. If more
than one box applies
long-term
complete
Proceeds
Cost for your to
gain or losstransactions,
from
from column
(d) and
(keep(sales
for your records)
This
form may
be8949,
easierpage
to complete
if you
round off
cents
to have
(or other basis) than
Form(s)
8949,
combine
result
a separate
Form
2, for each
applicable
box.
If you
moreprice)
long-term transactions
will fit
on Part
thisI,page
for the
one
orwith Page 1 of
line 2, column (g)
column (g)
whole
dollars.
more of
the boxes, complete as many forms with the same box checked as you need.
Page 1 of 2
Form 8949 (2016)
(d)
Cost or other basis.
(h)
Gain or (loss).
Subtract column (e)
from column
(d) and
3,846.00
combine the result
with column (g)
enter a code in column (f).
1b Totals for all(a)
transactions reported(b)
on Form(s)
Date8949
sold orwith Proceeds
See the Note below See the separate instructions.
Description of property
Date acquired
and see Column (e)
Box
A checked
. Co.)
. . . (Mo.,
. . day,
. yr.). . disposed
. . of. . (sales price)36,270.00
32,424.00
(Example:
100 sh. XYZ
(f)
(g)
(Mo., day, yr.) (see instructions)
in the separate
2 Totals for all transactions reported on Form(s) 8949 with
Code(s) from
instructions
Amount of
instructions
adjustment
Box B checked . . . . . . . . . . . . .
3 Totals for all transactions reported on Form(s) 8949 with
Box
CCorp
checked . . . . 01/02/2009
. . . . 11/03/2016
. . . . .
300 sh.
IBM
54,405.00
26,211.00
3,846.00
Capital Gains and Losses
0.00
0.00
Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term
XXX-XX-1234
see page 1.
showing basis was reported
to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line
This is important tax information and is being furnished to the Internal Revenue Service (except as indicated). If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is
(h) Gain or (loss)
instructions
for
figure
the
enter on
the
8a; that
you
aren't
required
to ultimately
reportto
these
transactions
ontaxForm
8949 (see instructions). (g)
taxableSee
and the
IRS determines
it how
has
notto
been
reported.
Youamounts
are
responsible
for the
accuracy of your
return
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
(e)
(h)
enter a code in column (f).
Cost or other basis.
Gain or (loss).
See the Note below See the separate instructions.
Subtract column (e)
and see Column (e)
from column (d) and
(f)
(g)
in the separate
combine the result
Code(s) from
instructions
with column (g)
Amount of
instructions
adjustment
36,270.00
F
0.00
0.00
Part II
(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
(C) Short-term transactions not reported to you on Form 1099-B
(c)
Date sold or
disposed of
(Mo., day, yr.)
E
D
28,194.00
28,194.00
SAMPLE SHAREOWNER
transactions,
You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions,
complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page
for one or more of the boxes, complete as many forms with the same box checked as you need.
(b)
Date acquired
(Mo., day, yr.)
0.00
Note:
You
aggregate
alland
long-term
transactions
reported
on Form(s)
Partsold
I that were
Short-Term
Capital
Losses—Assets
Held
One Year
or Less1099-B
For securities
acquired
on amay
variety
of dates,Gains
Box 1b may
be blank
Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term
transactions, see page 2.
Note: You may aggregate all short-term transactions
reported on Form(s) 1099-B showing basis was
(keep for your records)
reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on
Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions).
(a)
Description of property
(Example: 100 sh. XYZ Co.)
B
26,211.00
26,211.00
Name(s) shown on return
This is important tax information and is being furnished to the Internal Revenue Service (except as indicated). If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is
taxable and the IRS determines that it has not been reported. You are ultimately responsible for the accuracy of your tax return
1
C
IBM
54,405.00
54,405.00
▶
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute
statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your
broker and may even tell you which box to check.
✔
A
State tax
withheld
(Box 16)
Form 1040 or Form 1040NR.
Before you check Box D, E, or F below, see whether you Attach
receivedtoany
Form(s) 1099-B or substitute statement(s) from your broker. A substitute
Attachment
to the
IRS by your
Sequence No. 12
broker and may even tell you which box to check.
For securities sold that were acquired on a variety of dates, Box 1b may be blank
Part I
01/02/2009
Federal
State
income tax
identification
State
withheld
no.
name
(Box 15)
(Box 4)
(Box 14)
Applicable check box on Form 8949: E
Reported to IRS: Net proceeds (Box 6)
Gain / Loss
▶
D and its separate instructions is at www.irs.gov/scheduled.
Department
thehave
Treasury
statementofwill
the same Information
information
asabout
FormSchedule
1099-B. Either
will show whether your basis (usually your cost) was reported
▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
Internal Revenue Service (99)
Social security number or taxpayer identification number
Name(s) shown on return
459200101
11/03/2016
Total
H
Sales and Other Dispositions of Capital Assets
Stock or other
symbol
Accrued
Wash sale
Cost or other
market
loss
Date sold or
Date
Quantity sold
basis
discount
disallowed
disposed
acquired
Proceeds
(Box 1c)
(Box 1f)
(Box 1b)
(Box 1d)
(Box 1e)
(Box 1g)
Long-term transactions for which basis is not reported to the IRS-- Report on Form 8949, Part II, with Box E checked.
Type of gain or loss (Box 2): Long-term
Noncovered security (Box 5) X
State tax
withheld
(Box 16)
IBM
36,270.00
Copy B For Recipient
OMB No. 1545-0715
CUSIP
number
Description of property
(Box 1a)
Accrued
Wash sale
market
Cost or other
loss
Date sold or
Date
Quantity sold
discount
basis
disallowed
disposed
acquired
Proceeds
(Box 1c)
(Box 1f)
(Box 1b)
(Box 1d)
(Box 1e)
(Box 1g)
Short-term transactions for which basis is reported to the IRS-- Report on Form 8949, Part I, with Box A checked.
Type of gain or loss (Box 2): Short-term
Basis reported to IRS (Box 3) X
INTL BUSINESS MACHS CORP
Proceeds From Broker and Barter Exchange Transactions
Copy B For Recipient
OMB No. 1545-0715
Stock or other
symbol
CUSIP
number
Vanguard Brokerage
Account number: 12345678
2016 Form 1099-B
Proceeds From Broker and Barter Exchange Transactions
Schedule
D
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any longterm capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . .
Part II
28,194.00
4
5
6
(
)
7
Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the
lines below.
This form may be easier to complete if you round off cents to
whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
(h) Gain or (loss)
Adjustments
Subtract column (e)
to gain or loss from
from column (d) and
Form(s) 8949, Part II, combine the result with
line 2, column (g)
column (g)
8a Totals for all long-term transactions reported on Form
1099-B for which basis was reported to the IRS and for
which you have no adjustments (see instructions).
However, if you choose to report all these transactions
on Form 8949, leave this line blank and go to line 8b .
8b Totals for all transactions reported on Form(s) 8949 with
Box D checked . . . . . . . . . . . . .
9 Totals for all transactions reported on Form(s) 8949 with
Box E checked . . . . . . . . . . . . .
54,405.00
26,211.00
10 Totals for all transactions reported on Form(s) 8949 with
Box F checked . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss)
from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . .
2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
12 Schedule
Net long-term
gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
D, line 8b (if Box D above is checked), line 9 (if Box E
28,194.00
11
12
above is checked), or line 10 (if Box F above is checked) ▶
13 Capital
gain distributions.
thebasis
instructions
. IRS
. was
. . incorrect,
. . . enter
. .in column
. . .(e) .the. basis
. .as reported
.
13
Note:
If you checked
Box D aboveSee
but the
reported to. the
to the IRS, and enter an
adjustment
in column
(g) toloss
correct
the basis.
See Column
(g) in the
separate
how
to figure
the amount
of the adjustment.
14 Long-term
capital
carryover.
Enter
the amount,
if any,
frominstructions
line 13 of for
your
Capital
Loss
Carryover
Worksheet in the instructions
. . . . . . . . . . . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on
the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 11338H
14 (
15
Form 8949 (2016))
6
Schedule D (Form 1040) 2016
2
Frequently asked questions
Where to go for assistance
Q. I track my own cost basis. Do I have to use Vanguard’s information?
Check with the IRS
A. For shares of noncovered securities that you’ve sold, we’ll report the
information to you on your 1099-B, when available. However, we won’t
report any basis information to the IRS that we have on noncovered shares.
For these shares, you must determine the cost basis information, and you
may use another cost basis method if you meet the requirements.
Refer to IRS Publication 550, Investment Income and Expenses (available
online at irs.gov), or call the IRS at 800-829-1040.
For covered shares, you must use our default cost basis method unless
you provided us with another cost basis method at the time of the sale.
However, what we’re required to report to the IRS may differ from what
you must report to the IRS, and you may need to make adjustments on
Form 8949. Having your own records will help you make these adjustments,
if any are needed.
Call Vanguard
If you have questions about the information provided in this guide, call the
number at the top of your 1099-B, and we’ll be happy to help you. If your
tax situation is complex or if you’re uncertain about how to interpret a
specific tax rule, consult a qualified tax professional; Vanguard professionals
can’t provide tax advice. You can find general tax-preparation data and tools
at vanguard.com/taxcenter.
Q. What adjustments haven’t been made to my cost basis?
A. Brokers are only required to make some of the possible wash sale
adjustments that you must consider to file your income tax return.
We won’t make wash sale adjustments when the purchases and sale
occur in different accounts or when they’re between substantially
identical securities that have different CUSIP numbers. We also won’t
make the following adjustments:
Constructive sales and mark-to-market adjustments.
• RIC and REIT adjustments with respect to certain short-term losses.
• Hedging transactions or offsetting positions.
•
Q. How is a wash sale reported?
A. When a security is sold for a loss and a “substantially identical”
security is purchased up to 30 days before or after the date of the sale,
the loss is disallowed and can’t be deducted. The disallowed loss is
added to the basis of the purchased security (as reported in Box 1e on
your 1099-B), thereby reducing future gains or increasing future losses.
Vanguard will make some, but not all, of the adjustments for wash sales.
© 2017 The Vanguard Group, Inc. All rights reserved.
1099COMB 012017