Here's an important fact: Form 8949 did not exist for tax year 2010. The form was first introduced by the IRS for tax year 2011 as part of a significant redesign of how taxpayers report capital gains and losses.

For the 2010 tax year, if you sold stocks, bonds, real estate, or other capital assets, you reported those transactions directly on Schedule D (Form 1040): Capital Gains and Losses—not on Form 8949. Schedule D was a two-page form where you listed each transaction individually in Part I (for short-term gains and losses on assets held one year or less) or Part II (for long-term gains and losses on assets held more than one year). If you had many transactions, you used Schedule D-1, a continuation sheet that provided additional space to list your sales.

Form 8949 was created in 2011 to help reconcile the information reported on Forms 1099-B (broker statements) with what taxpayers reported on their tax returns, making it easier for both taxpayers and the IRS to match records and catch errors.

Source: IRS 2010 Instructions for Schedule D and IRS 2011 Instructions for Schedule D and Form 8949

When You'd Use It (Late/Amended Returns for 2010)

Since Form 8949 didn't exist in 2010, if you're filing a late or amended return for tax year 2010 today, you would still use the 2010 version of Schedule D, not Form 8949. The IRS requires you to use the forms and schedules that were in effect for that specific tax year, even when filing years later.

Late Returns

If you never filed your 2010 tax return and need to file it now, download the 2010 Schedule D from the IRS “Prior Year Forms” page and report your capital gains and losses directly on that form. You won't use Form 8949 because it wasn't part of the 2010 tax filing requirements.

Amended Returns (Form 1040X)

If you already filed your 2010 return but discovered errors in your capital gains reporting, file Form 1040X (Amended U.S. Individual Income Tax Return) with a corrected 2010 Schedule D attached. Again, don't use Form 8949—it didn't exist yet. Make sure to explain the changes clearly in Part III of Form 1040X.

The general statute of limitations for claiming a refund is three years from the original filing deadline, meaning for most 2010 returns (due April 15, 2011), the deadline passed in April 2014. However, if you owe additional tax, the IRS can assess taxes for up to three years after you file (or six years in certain fraud or substantial understatement cases), so late filing might still be necessary.

Source: IRS Prior Year Forms and IRS Publication 550

Key Rules for Reporting Capital Gains and Losses in 2010

Even though Form 8949 didn't exist, the fundamental tax rules for capital gains and losses in 2010 were similar to today:

Holding Period Matters

Your tax rate depended on how long you held the asset. Short-term gains (assets held one year or less) were taxed as ordinary income at your regular tax rate. Long-term gains (assets held more than one year) received preferential treatment—most taxpayers paid 15%, while those in the lowest tax brackets paid 0%, and high earners might have paid more.

Capital Asset Definition

Capital assets included stocks, bonds, mutual funds, real estate not used in business, personal property, and investment property. Excluded were inventory, property used in your trade or business, and certain creative works you created yourself.

Loss Limitations

You could deduct capital losses against capital gains dollar-for-dollar. If your losses exceeded your gains, you could deduct up to $3,000 ($1,500 if married filing separately) against ordinary income like wages or business income. Any remaining losses carried forward to future tax years indefinitely.

Basis Reporting

You were responsible for calculating and reporting your cost basis (what you originally paid for the asset, plus improvements, minus depreciation). In 2010, brokers weren't yet required to report basis information on Form 1099-B for most securities, placing the burden entirely on taxpayers to maintain accurate records.

Special Situations

Certain transactions had special rules, including wash sales (selling stock at a loss and buying substantially identical stock within 30 days before or after), installment sales, like-kind exchanges (reported on Form 8824), and qualified small business stock exclusions under Section 1202.

Source: IRS 2010 Instructions for Schedule D

Step-by-Step: How to Report Capital Gains and Losses (2010)

Here's how taxpayers reported their capital transactions in 2010:

Step 1: Gather Your Documentation

Collect all Forms 1099-B from brokers, closing statements from real estate sales, and your personal records showing purchase dates, sale dates, purchase prices (basis), and selling prices for each asset sold during 2010.

Step 2: Organize Transactions by Holding Period

Separate your sales into two categories: short-term (held one year or less) and long-term (held more than one year). Count from the day after you acquired the property through the day you sold it.

Step 3: Complete Schedule D, Part I (Short-Term)

List each short-term transaction on line 1, entering:
(a) description of property (e.g., “100 shares Apple Inc.”),
(b) date acquired,
(c) date sold,
(d) sales price,
(e) cost or other basis, and
(f) gain or loss (subtract column e from column d).

If you have more transactions than fit on the form, use Schedule D-1 and enter the totals on Schedule D, line 2.

Step 4: Complete Schedule D, Part II (Long-Term)

Follow the same process for long-term transactions on line 8, with continuation totals on line 9 if needed. Include capital gain distributions from mutual funds (from Form 1099-DIV, box 2a) on line 13.

Step 5: Calculate Your Net Capital Gain or Loss

Add lines 4–6 for your net short-term result (line 7) and lines 11–14 for your net long-term result (line 15). Combine both on line 16.
If line 16 is a gain, it flows to Form 1040, line 13. If it's a loss, you can deduct up to $3,000 on Form 1040, line 13, with the remainder carried forward.

Step 6: Apply Special Worksheets if Needed

If you have certain types of gains (collectibles, unrecaptured Section 1250 gain from depreciated real estate, or qualified dividends), complete the special tax computation worksheets included in the Schedule D instructions to calculate your correct tax.

Source: IRS 2010 Instructions for Schedule D

Common Mistakes and How to Avoid Them

Mistake #1: Using 2011 or Later Forms for 2010 Returns

Some taxpayers filing late 2010 returns mistakenly use current forms, including Form 8949. Always use the forms that were in effect for the tax year you're filing. Download 2010 forms from the IRS Prior Year Forms page.

Mistake #2: Incorrect Basis Calculation

In 2010, basis reporting wasn't provided by brokers for most securities, leading to frequent errors. Remember to include commission fees in your purchase price (increasing basis and reducing gain) and subtract them from sales proceeds. Keep meticulous records or contact your broker for historical statements.

Mistake #3: Missing the Wash Sale Rule

If you sold stock at a loss and repurchased the same or substantially identical stock within 30 days before or after the sale, the loss is disallowed. Enter “Wash Sale” on Schedule D and add the disallowed loss to the basis of the repurchased shares. Form 1099-B didn't always report wash sales in 2010, so you must track this yourself.

Mistake #4: Forgetting to Report All Transactions

Some taxpayers only reported transactions shown on 1099-B forms, missing sales of real estate, partnership interests, or assets sold through brokers who didn't issue 1099-Bs. Report every capital asset sale, even without a 1099-B.

Mistake #5: Reporting Non-Deductible Losses

Losses on personal-use property (like your vacation home or personal vehicle) aren't deductible. However, if you received Form 1099-S for a real estate sale, you must still report the transaction on Schedule D showing zero loss in the gain/loss column.

Mistake #6: Not Carrying Forward Unused Losses

If your capital losses exceeded the $3,000 limit, many taxpayers forgot to carry forward the unused portion to 2011. Complete the Capital Loss Carryover Worksheet in the Schedule D instructions to track your carryover accurately.

Source: IRS Publication 550 and IRS Publication 544

What Happens After You File

IRS Matching Process

The IRS receives copies of all Forms 1099-B and 1099-S filed by brokers and settlement agents. They use automated systems to match the gross proceeds reported on these forms with what you reported on Schedule D. Mismatches trigger CP2000 notices—letters proposing additional tax, interest, and penalties.

Assessment and Refund

If you reported a capital gain, the tax increases your overall liability on Form 1040, line 44 (or reduces your refund). If you claimed a capital loss deduction, it reduces your taxable income.
Processing times vary—electronic returns filed timely typically process within 21 days, while paper returns can take 6–8 weeks or longer.

Audit Potential

Returns with significant capital gains or losses, especially from unusual sources or without supporting 1099 forms, face higher audit risk. The IRS may request documentation proving your basis, acquisition date, and sale details. Keep records for at least three years after filing (longer if you file late or claim loss carryovers).

Carryover to Future Years

If you have capital loss carryovers from 2010, they remain available indefinitely. You must report them on your 2011 and subsequent returns’ Schedule D until fully used. Keep your 2010 return and Capital Loss Carryover Worksheet with your permanent tax records.

Amended Returns

If the IRS finds errors, they'll send a notice proposing changes. You can agree and pay, or disagree and provide documentation supporting your original reporting. If you discover your own errors, file Form 1040X promptly to minimize interest and penalties.

Source: IRS.gov

FAQs

1. Why doesn't Form 8949 exist for 2010, and what should I use instead?

2. I received a Form 1099-B for 2010 but the basis is blank. What do I do?

3. Can I e-file a 2010 tax return today?

4. How do I report inherited property sold in 2010?

5. What if I forgot to report a stock sale on my 2010 return?

6. Do I need to report capital gains if my total income was below the filing threshold?

7. Where can I find the 2010 Schedule D and instructions?

Source: IRS Publications 550 and 544, IRS Prior Year Forms

Important Note

This summary provides general guidance for tax year 2010 based on IRS publications and forms. Tax situations vary significantly, and historical returns (especially those filed late) can involve complex issues. For specific advice about your 2010 return, consult a qualified tax professional or IRS representative. All information is drawn from authoritative IRS sources including the 2010 Instructions for Schedule D, IRS Publications 550 and 544, and official IRS guidance.