Sales and Other Dispositions of Capital Assets
Please note that, as of tax year 2012, the IRS has made significant changes to the method in which capital gains and losses are reported. In previous years, capital gains and losses were to be reported directly on Schedule D, Form 1040 (Capital Gains and Losses). As of 2012, however, information reported to you on Form 1099-B is provided for reporting first on Form 8949 (Sales and Other Dispositions of Capital Assets). Capital gain distributions that are paid by your mutual funds, which are reported on Form 1099-DIV (see page 2), should continue to be reported directly on Schedule D.
Form 8949 is used to report capital gains and losses that may have resulted from the sale or exchange of your mutual fund shares in 2013. You will receive Form 1099-B if you sold or exchanged shares in your non-money market or non-retirement mutual fund account, including shares in the Domini Social Equity Fund, Domini International Social Equity Fund, and Domini Social Bond Fund.
The IRS considers an exchange of shares to be the same as a sale of shares. The information from your Form 1099-B is provided for reporting in the appropriate areas of Form 8949. Part I of the form is for short-term gains or losses and Part II is for long-term gains or losses. Each sale must be reported separately.
Once Form 8949 has been prepared for your mutual fund investments, then the total short-term capital gains and losses and the total long-term capital gains and losses generally must be entered in the appropriate boxes on Schedule D, Form 1040. For additional information about completing Form 8949 or Schedule D, please review the instructions issued by the IRS or consult your tax advisor.