Reporting and Reconciliation

Part I is empty because no personal capital assets were held for one year or less.

All short-term items were business-use assets.

Per IRS rules, business assets (Sofa and Chair) are reported on Form 4797, not Form 8949.

This ensures capital gains and business losses are kept in their correct tax categories.

Asset Form Reported Investments Form 8949 (Part II) Business Property Form 4797 

Schedule D Reconciliation

• Line 16 ($145,860): Represents total net gains after applying the $14,100 capital loss carryforward.

• Line 19 ($35,180): Corrected the placement of unrecaptured §1,250 gains from the business building sale, ensuring it is taxed at the correct maximum 25% rate rather than the 28% collectibles rate.