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IRS Form Schedule D (Form 1040)

Capital Gains and Losses

Country

United States

Revision year

2024

Methods

paper, efile

Updated

2026-05-20

Capital Gains and Losses

Schedule used to report sales and other dispositions of capital assets, summarize short- and long-term gain/loss totals from Form 8949, and apply capital loss carryovers.

Who must file: Individuals who sold or exchanged capital assets, received capital gain distributions, had a Section 1256 contract gain/loss, or had a capital loss carryover.

Practical overview

Schedule D and Form 8949 are paired: detail lots go on 8949 and totals flow to Schedule D. Errors typically come from cost-basis omissions on transferred shares, missing wash-sale adjustments, and forgetting to carry forward losses from a prior year. The 28% collectibles rate and the unrecaptured Section 1250 gain rate are computed on the Schedule D Tax Worksheet, not on Schedule D itself.

Practical steps

  • Aggregate transactions from each broker 1099-B and reconcile basis to your own records.
  • Categorize each lot on Form 8949 with the correct box (A, B, C for short-term; D, E, F for long-term).
  • Apply prior-year capital loss carryovers from your Schedule D Capital Loss Carryover Worksheet.
  • If applicable, use the Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet for the tax computation.

Due-date notes

File with Form 1040 by the individual income tax return due date.

Timing: April 15

Extension reference: Form 4868

Penalty snapshot

Accuracy-related and failure-to-file penalties at the Form 1040 level; substantial understatement under IRC § 6662 commonly arises from overstated basis.

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Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.