When a taxpayer sells a capital asset, i.e., property owned and used for personal or investment purposes, the sale will result in either a capital gain or a capital loss and is generally reported on Schedule D (Form 1040).
What items are reported on Schedule D?
Some items of income or loss are reported directly on Schedule D:
- The aggregated totals for all short-term and long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which there are no adjustments. (If not aggregated, they are reported on Form 8949.)
Many items of income or loss flow into Schedule D from the following forms, schedules, and worksheets:
- Form 1099-DIV Box 2a, Total capital gain distributions (long-term)
- Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains
- Form 4684, Casualties and Thefts
- Form 4797, Sales of Business Property
- Form 6252, Installment Sale Income
- Form 6781, Gains and Losses From Section 1256 Contracts and Straddles
- Form 8824, Like-Kind Exchanges
- Form 8949, Sales and other Dispositions of Capital Assets
- Schedules K-1 from an estate or trust (Form 1041), a partnership (Form 1065), or an S corporation (Form 1120-S)
- Capital Loss Carryover Worksheet in the Schedule D instructions
- 28% Rate Gain Worksheet in the Schedule D instructions
- Unrecaptured Section 1250 Gain Worksheet in the Schedule D instructions
When is Schedule D not required?
Schedule D is not required when the only capital gain distribution reported in the tax return is on Form 1099-DIV box 2a, and boxes 2b, 2c, and 2d are zero. In that case, the check box on Form 1040 Line 7 indicating that Schedule D isn't required will be checked and Schedule D won't print with the print sets. It will still be available for printing, however, via its printer icon in the Income menu.
Schedule D menu in TaxSlayer ProWeb
In an individual tax return in ProWeb, the Schedule D menu is under the Income menu. Here are the menu options:
- Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc. - Select to complete Form 8949. See here for more information about Form 8949.
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Other Capital Gains Distributions
- Taxpayer / Spouse / Joint Additional Capital Gains Distributions - Enter here any long-term capital gain distribution not reported elsewhere. The total will be reported on Schedule D line 13.
- Taxpayer / Spouse / Joint Additional Capital Gains Distributions 28% Column - Enter any amount needed for but not already flowing to line 4 of the 28% Rate Gain Worksheet.
- Capital Loss Carryover - Enter here any short-term and long-term capital loss carryover from the prior year.
- Sale of Main Home Worksheet - Select to complete the Sale of Main Home Worksheet. See here for more information about completing this worksheet.
- 1099-B Transactions with No Adjustments - Select to aggregate transactions reported on Form(s) 1099-B that have no adjustments. See here for more information about aggregating.
- PDF Attachments - If you aggregated transactions on Form 8949 using Adjustment Code M, attach here a PDF copy of the brokerage statement(s) the aggregated entries relate to. See here for more info on aggregating transactions on Form 8949.
- Form 8997 - Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments - Select to complete Form 8997 for a taxpayer with one or more investments in a QOF. See here for more information.