IRS offers tips for dealing with new fixed assets form
February 13, 2012
The Internal Revenue Service (IRS) recently explained a new form that taxpayers and preparers will be required to use to report most gains and losses from transactions related to fixed assets
that fall under the umbrella of investment property.
In a recently released Tax Tip, the IRS noted that "Most property you own and use for personal purposes, pleasure or investment is a capital asset."
Form 8949, Sales and Other Dispositions of Capital Assets, is split into two parts. Short-term capital gains or losses pertaining to assets held for one year or less must now be reported on Part I, while their long-term equivalents (assets held for more than a year) should be reported on Part II.
In addition to the new form, taxpayers must also fill out Schedule D to report fixed asset
losses and gains. However, for 2011 transactions, Schedule D-1 is no longer in use.
As The New York Times explains, the new form came about as a result of new rules related to cost basis reporting.