How To Report

Report the sale or exchange of qualified community stock or a qualified community partnership interest on Form 8949, Part II, with the appropriate box checked, as you would if you weren’t taking the exclusion. Then enter “X” in column (f) and enter the amount of the exclusion as a negative number in column (g). Put it in parentheses to show it is negative. See the Instructions for Form 8949, columns (f), (g), and (h). Complete all remaining columns.

Report the sale or exchange of qualified community business property on Form 4797. See the Form 4797 instructions for details.