Are you worried about whether or not you need to fill out the IRS form 8949?
Buying and selling stocks is a great way to increase your net worth for short and long-term goals. When you sell stocks (or any asset for that matter), you affect your tax liability. Just like money you make working, you must pay taxes on any money you earn.
Not every sale earns money, though. Many investors sell stocks at a loss whether to offset their capital gains or because they have no choice but to sell at a loss – as we all know, life is unpredictable.
When you buy and sell stocks for a profit or loss, the IRS wants to know about it on Form 8949. Every investor must complete one. Here’s how it works.