Why Your Form 8949 Shows an Adjustment in Column G and $0 on Schedule D
When filing your tax return, you may notice that your Form 8949 reports a capital loss, but it appears as an adjustment in Column (g) and results in a $0 gain or loss on Schedule D. This is not an error — it reflects a specific IRS reporting rule for nondeductible losses or adjustments that must be accounted for in a particular way.
Understanding Column (g) Adjustments
Column (g) on Form 8949 is used to report adjustments to your gain or loss. If you have a nondeductible loss (such as from a wash sale or other disallowed deduction), you must:
- Enter the amount of the loss as a positive number in Column (g).
- Enter “L” in Column (f) to indicate the loss is nondeductible.
- Enter the proceeds in Column (d) and the cost basis in Column (e).
- The result in Column (h) will be $0, as the adjustment offsets the reported loss.
This ensures that while the transaction is reported, the IRS recognizes that the loss is not deductible for tax purposes.
Why Schedule D Shows $0
Schedule D aggregates all capital gains and losses reported on Form 8949. Since your adjustment in Column (g) results in a net $0 gain or loss, Schedule D will reflect $0 for that transaction. This is correct and compliant with IRS instructions.
When This Applies
This reporting method applies to:
- Nondeductible losses (e.g., wash sales).
- Adjustments required by Form 2438, Form 2439, or other forms.
- Transactions where you are reporting as a nominee or agent, and adjustments are needed to zero out the gain/loss.
Always ensure you complete Form 8949 before filling out Schedule D, as instructed by the IRS.
Important Notes
- Do not omit Form 8949 even if the net result is $0 — it is required for reporting purposes.
- Use the instructions for Form 8949 and Schedule D to ensure proper completion.
- If you are unsure about an adjustment, consult the IRS instructions or seek guidance from a tax professional.
Source:
Form 8949 Instructions
Schedule D Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.