Schedule D
Schedule D
Capital Gains and Losses
Every line is explained below in plain English — click any line to see what it means, who needs to fill it in, and what people commonly overlook.
Short-Term Capital Gains and Losses
- 1a Short-Term Totals From Form 8949, Box A The total short-term gains and losses from assets reported on Form 8949 with Box A checked -- meaning your broker reported the cost basis to the IRS.
- 1b Short-Term Totals From Form 8949, Box B The total short-term gains and losses from assets reported on Form 8949 with Box B checked -- meaning your broker reported the sale to the IRS but did not...
- 1c Short-Term Totals From Form 8949, Box C The total short-term gains and losses from assets reported on Form 8949 with Box C checked -- meaning you did not receive a 1099-B for these transactions...
- 2 Short-Term Gain From Installment Sales Short-term capital gain from the sale of property where you are receiving payments over multiple years rather than in a lump sum.
- 3 Short-Term Gain or Loss From Like-Kind Exchanges Short-term capital gain or loss recognized from a like-kind exchange (Section 1031 exchange) of property held one year or less.
- 4 Short-Term Gain or Loss From Partnerships, S Corps, Estates, and Trusts Your share of short-term capital gains or losses from partnerships, S corporations, estates, or trusts.
- 5 Short-Term Loss Carryover The short-term capital loss you are carrying forward from last year's return.
- 6 Short-Term Gain or Loss From Other Forms Short-term capital gains or losses reported on other IRS forms that flow to Schedule D. This is a catch-all line for gains and losses that do not come from...
- 7 Net Short-Term Capital Gain or Loss The total of all short-term capital gains and losses from lines 1a through 6.
Long-Term Capital Gains and Losses
- 8a Long-Term Totals From Form 8949, Box D The total long-term gains and losses from assets reported on Form 8949 with Box D checked -- meaning your broker reported both the proceeds and cost basis...
- 8b Long-Term Totals From Form 8949, Box E The total long-term gains and losses from assets reported on Form 8949 with Box E checked -- meaning your broker reported the sale to the IRS but did not...
- 8c Long-Term Totals From Form 8949, Box F The total long-term gains and losses from assets reported on Form 8949 with Box F checked -- meaning you did not receive a 1099-B for these transactions at...
- 9 Long-Term Gain From Installment Sales Long-term capital gain from the sale of property held more than one year where you are receiving payments over multiple years.
- 10 Long-Term Gain or Loss From Like-Kind Exchanges Long-term capital gain or loss from a Section 1031 like-kind exchange of property held more than one year.
- 11 Long-Term Gain or Loss From Partnerships, S Corps, Estates, and Trusts Your share of long-term capital gains or losses from partnerships, S corporations, estates, or trusts.
- 12 Capital Gain Distributions Capital gain distributions paid to you by mutual funds and REITs during the year. These are reported on your 1099-DIV in Box 2a.
- 13 Long-Term Loss Carryover The long-term capital loss you are carrying forward from last year's return.
- 14 Long-Term Gain or Loss From Other Forms Long-term capital gains or losses reported on other IRS forms that flow to Schedule D. This is the long-term counterpart to line 6.
- 15 Net Long-Term Capital Gain or Loss The total of all long-term capital gains and losses from lines 8a through 14.
Summary
- 16 Combine Short-Term and Long-Term The combined total of your net short-term capital gain or loss (line 7) and net long-term capital gain or loss (line 15).
- 17 Gain on Qualified Small Business Stock The portion of your gain from the sale of qualified small business stock (QSBS) that qualifies for special treatment under Section 1202.
- 18 Unrecaptured Section 1250 Gain The portion of your gain on depreciable real property that represents depreciation you previously claimed (or should have claimed).
- 19 28-Percent Rate Gain The portion of your long-term capital gain that comes from the sale of collectibles or from certain gains on qualified small business stock.
- 20 Qualified Dividends Worksheet A yes-or-no decision point.
- 21 Capital Gain Tax Using Schedule D Tax Worksheet The tax on your capital gains calculated using the Schedule D Tax Worksheet, which applies different tax rates to different categories of gain: 0%/15%/20%...
- 22 Schedule D Tax Your total tax on income including capital gains, as calculated on either the Qualified Dividends and Capital Gain Tax Worksheet (line 20) or the Schedule...