Form 1099-DA field reference
Form 1099-DA Box 6: Gain or loss term
What to check
- Verify the acquisition date
- Review special ordinary-treatment rules
- Do not infer term when Box 6 is blank
Where Box 6 flows on your return
Box 6 determines which specific Form 8949 checkbox category (short-term basis-reported, short-term basis-not-reported, long-term basis-reported, long-term basis-not-reported, or ordinary) applies to that transaction, which then determines whether the resulting gain or loss flows to Schedule D Part I (short-term) or Part II (long-term), or to Schedule 1 as ordinary income when marked ordinary.
How Box 6 works
Box 6 identifies short-term, long-term, or ordinary treatment whenever the broker has enough information — generally the acquisition date from Box 1d and the disposition date from Box 1e — to make that determination under section 1222's more-than-one-year test for long-term treatment.
Brokers are specifically required to mark a transaction "Ordinary" when it involves foreign currency, because such transactions may be section 988 transactions for the customer, which are taxed as ordinary income or loss rather than capital gain or loss regardless of how long the position was held.
Box 6 can be blank when the broker lacks the underlying acquisition-date information — for example, assets transferred in from another broker with an unknown original purchase date, or noncovered securities where Box 9 is checked and the broker chose not to complete the optional fields. A blank Box 6 means you must determine the holding period yourself from your own records before filing Form 8949.
Worked example
Aisha's 1099-DA shows Box 1d of March 2 two years ago and Box 1e of this year's June 15, more than a year apart, so Box 6 marks the disposition "Long-term." Aisha reports the sale on Form 8949 Part II and the gain carries to Schedule D Part II for long-term capital gains treatment.
Continue the filing flow
Frequently asked questions
What does it mean if Box 6 shows "Ordinary" instead of short-term or long-term?
An "Ordinary" designation is required for certain foreign currency (section 988) transactions involving digital assets, which are taxed as ordinary income or loss rather than capital gain or loss no matter how long the position was held.
Why is Box 6 blank on some of my 1099-DA lines?
Box 6 is left blank when the broker does not have enough information — typically a missing acquisition date — to determine short-term versus long-term treatment, which commonly happens with noncovered securities or assets transferred in from another broker.
Do I still need to know the holding period if Box 6 is blank?
Yes. You must determine the correct short-term or long-term treatment yourself from your own purchase records before completing Form 8949, since the IRS still requires that classification even when the broker did not supply it.