14 — Long-Term Gain or Loss From Other Forms Updated for tax year 2025

What this line means

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. Common sources include the 60% long-term portion of Section 1256 contracts (Form 6781), qualified small business stock exclusions (Section 1202), and gains from qualified opportunity zone investments.

Does this apply to you?

• You traded futures contracts, options on futures, or foreign currency contracts and are reporting the 60% long-term portion
• You sold qualified small business stock and are claiming the Section 1202 exclusion
• You sold or disposed of an investment in a qualified opportunity zone fund
• You had long-term gains from casualty or theft reported on Form 4684

Easy to overlook

Section 1202 exclusion can eliminate 100% of the gain If you held qualified small business stock for more than five years and it was issued after September 27, 2010, you can exclude 100% of the gain up to $10 million or 10 times your basis. The excluded portion still gets reported on Form 8949 and then backed out here. Filers who do not know about this exclusion pay tax on gains that could have been completely tax-free. ¹ [SOURCE: IRS Schedule D instructions — Line 14]

Section 1256 contracts are marked to market on December 31 Even if you did not sell your futures or options position, you are treated as having sold it at fair market value on the last business day of the year. The 60% long-term / 40% short-term split applies to this deemed sale. You have a gain or loss even on open positions. ² [SOURCE: General filing pattern — Section 1256 contract 60/40 split]

Watch out for this

Putting the entire Section 1256 gain on line 14 instead of splitting it. The 60% long-term portion goes on line 14 and the 40% short-term portion goes on line 6. Form 6781 calculates the split. Reporting the full gain as long-term means you underpay tax because you should be paying ordinary rates on the 40% short-term portion.

Related lines on your return

• Line 6 — Schedule D — Short-term gain or loss from other forms (the short-term counterpart)
• Line 15 — Schedule D — Net long-term capital gain or loss
• Line 17 — Schedule D — Gain on qualified small business stock (Section 1202 exclusion)