How do you report a Section 1045 rollover on your tax return?
You report the sale on Form 8949 and Schedule D for the year of the sale, then elect the rollover by entering the postponed gain as an adjustment with code R. The election has to be made on a timely filed return, including extensions.
The mechanics
Report the sale as usual. On the line below it, enter “Section 1045 rollover,” code R in the adjustment code column, and the postponed gain as a negative adjustment. Check the current year’s Schedule D instructions, since forms change.
Records to keep
- Sale closing date and proceeds.
- Purchase dates and amounts for each replacement company.
- Each company’s QSBS position at issuance.
Selling QSBS soon? Share your timing and we’ll line up qualifying rounds that close inside your window.
General information, not tax advice. Last reviewed November 2026.