What are 'adjustments' to the basis?

Certain assets can have "adjustments" to the basis that can affect the amount gained or lost for tax purposes. The initial section of Schedule D is used to report your total short-term gains and losses. Any asset you hold for one year or less at the time of sale is considered “short term” by the IRS.

How are capital gains & losses calculated?

Capital gains and losses are generally calculated as the difference between what you bought the asset for (the IRS calls this the “ tax basis ”) and what you sold the asset for (the sale proceeds). Certain assets can have "adjustments" to the basis that can affect the amount gained or lost for tax purposes.

How do I add a basis adjustment to 8949?

Use Worksheet for Basis Adjustment in Column (g) in Instructions for Form 8949, Sale and Other Dispositions of Capital Assets. Enter the proceeds as reported in Box 1d. Enter as an adjustment using a minus sign for any selling expenses paid (and that are not reflected on the form or statement received).