When you go through the 1099-DA flow, one of the final questions you will be asked is whether or not you would like to push all transactions to box H & K.
The form is referring to the boxes at the top of the first and second pages of the 8949. This is first page with boxes H & L displayed, the second page is identical but with boxes K & L:
What is the difference between H & K and I & L?
Boxes I & L refer to disposals of assets that have not been reported to the IRS.
Conversely, boxes H & K refer to disposals that have been reported to the IRS.
Your Form 1099-DA is comprised 100% of transactions that have been reported to the IRS, so for most users, there should be no transactions categorized under boxes I & L.
Boxes H & I refer to short-term disposals (assets held under 1 year), while boxes K & L refer to long-term disposals.
Notable Exceptions: When to correctly use I & L
Your onchain activity is not directly reported to the IRS, so your onchain 8949s should have boxes I and/or L checked.
Exchanges also make mistakes occasionally, and may leave specific transactions off your 1099-DA form. In that case, these would also be categorized as I or L.
What to do if Awaken categorizes transactions as I or L
For most users, the transactions should already all be reported on boxes H & K, so this checkbox doesn't apply to you. However, if you see that you have some transactions labeled I or L, you should cross-reference those specific transactions.
If they do not appear on your 1099-DA, then they should be labeled as I or L based on their holding period.
If they are on your 1099-DA, then they should be labeled H or K. If you're confident that 100% of the transactions were reported on your 1099-DA, then you should check the box to move all rows to H & K:
