Form 1099-B field reference
Form 1099-B Box 2: Short-term or long-term classification
Form 8949 destination
Part I for short-term or Part II for long-term
Reconcile this field with the rest of the transaction before calculating gain or loss. A Form 1099-B label does not override the official basis, holding-period, or adjustment rules.
Before filing
What to check
- Compare acquisition and disposition dates.
- Review special holding-period rules for inherited, gifted, replacement, or converted property.
- Place the transaction in the correct Form 8949 part and A-F category.
How it works
Box 2 mechanics
The general rule under IRC §1222 is straightforward — held more than one year is long-term, one year or less is short-term — but several categories of transactions don't follow that simple test even though a broker's Box 2 field only has short-term or long-term to choose from. Wash sale replacement shares carry forward the holding period of the original shares that generated the disallowed loss, not just the replacement purchase date. Section 1256 contracts (regulated futures, foreign currency contracts, and certain options) get mandatory 60% long-term / 40% short-term blended treatment regardless of how long they were actually held, which is a fundamentally different mechanic than the ordinary >1-year test Box 2 is built around. Some transactions are reported as ordinary rather than capital at all — certain bond premium or option-related items — which won't fit neatly into either Part I or Part II of Form 8949.
Worked example
A broker's Box 2 marks a §1256 futures contract the same way as an ordinary stock sale, but §1256 contracts are taxed 60% long-term and 40% short-term regardless of the actual holding period. The classification for that instrument follows a separate statutory blended-rate rule rather than the ordinary more-than-one-year test that Box 2 otherwise reflects.
Box 2 FAQs
Does "more than one year" mean 365 days exactly?
The holding period starts counting the day after acquisition, so a sale exactly one year later is short-term. Long-term treatment requires holding into the day after the one-year anniversary.
What if Box 2 is blank or marked "ordinary"?
Some 1099-B transactions, such as certain bond premium or option-related items, are reported as ordinary income rather than capital gain. Review the broker's explanation and the applicable instructions before assuming Part I or Part II applies.