“Because the loss is nondeductible, enter ‘‘L’’ in column (b). Enter the amount of the nondeductible loss as a positive number in column (g).”--->Correct; in certain situations, you must put a code, code L( since you have a nondeductible loss other than code W loss, in column (b) of Form 8949 and report the difference between column (e) and column (f) adjustment to your loss,($18,500) as a positive amount in column (g), then go to Sch D. For example, if you entered $31,500 in column (e) and $50,000 in column (f), enter $18, 500 in column (g).
“My understanding is that the loss is determined from amount realized less adjusted basis, thus the $18500 nondeductible loss figure I had going into column g. I can't find anything in the instructions that state to do what you're telling me to do.”--->Correct. You may need to complete columns (b) and (g) as you have a disallowed loss. You can not claim a loss on the sale of a personal residence.
“OK buried deep in the 1040 Schedule D Instructions, it tells me add back in those additional costs of sale and also to put an O in column b.”--->You need to Include in this column any selling expense such as broker’s fees, commissions unless you reported the net sales price in column (e). If you include any expenses in (e) ,then , you need to enter O in column b.
Last edited by Wnhough : 03-31-2012 at 09:47 PM.