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The IRS mandates specific adjustment codes for the reporting of capital gain/loss transactions. These adjustment codes are listed starting on page 7 of the Instructions for Form 8949 Sales and Other Dispositions of Capital Assets, along with information explaining the situation each code represents and information regarding how to properly report the adjustment amount in your return.

These adjustment codes are included on Form 8949, which will print along with Schedule D (Form 1040) Capital Gains and Losses. The adjustment amount will also be listed on Form 8949 and will transfer over to Schedule D. For more information, see the IRS Instructions for Schedule D.

To enter an adjustment code for a transaction in TaxAct®:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
  3. Click + Add Form 1099-B to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  5. On the screen titled Investment Sales - Adjustment Code(s), select the appropriate adjustment code from the Other adjustment code drop-down, then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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