Schedule D (Form 1040) - Capital Gains and Losses

Investors who sold stocks, bonds, options, or other securities will have to prepare Form 8949 Sales and Other Dispositions of Capital Assets and Schedule D (Form 1040) Capital Gains and Losses for capital gains and losses, and file them along with Form 1040 U.S. Individual Income Tax Return.

In the TaxAct program, you need to report your Form(s) 1099-B, and the information will transfer to Form 8949 and/or Schedule D. If you did not receive a Form 1099-B for a transaction, but the transaction still needs to be reported, you can still report it on Form 1099-B in the TaxAct program, and indicate that you did not receive a Form 1099-B for the transaction.

To report your stock transactions in TaxAct program, go to our Forms 8949 and 1099-B - Entering Stock Transactions in Program FAQ.

Per IRS Instructions for Form 8949, page 1:

Individuals. Individuals use Form 8949 to report the following.

  • The sale or exchange of a capital asset not reported on another form or schedule.
  • Gains from involuntary conversions (other than from casualty or theft) of capital assets not used in your trade or business.
  • Nonbusiness bad debts.
  • Worthlessness of a security.
  • The election to defer capital gain invested in a qualified opportunity fund (QOF).
  • The disposition of interests in QOFs.

Schedule D. Use Schedule D for the following purposes.

  • To figure the overall gain or (loss) from transactions reported on Form 8949.
  • To report a gain from Form 6252 or Part I of Form 4797.
  • To report a gain or (loss) from Form 4684, 6781, or 8824.
  • To report capital gain distributions not reported directly on Form 1040 or 1040-SR, line 7 (or effectively connected capital gain distributions not reported directly on Form 1040-NR, line 7).
  • To report a capital loss carryover from the previous tax year to the current tax year.
  • To report your share of a gain or (loss) from a partnership, S corporation, estate, or trust. (However, corporations report this type of gain or (loss) on Form 8949.)
  • To report certain transactions you don't have to report on Form 8949, such as transactions reported to you on a Form 1099-B (or substitute statement) showing basis was reported to the IRS and for which you have no adjustments, as explained under Exception 1, later.

Individuals, estates, and trusts also use Schedule D to report undistributed long-term capital gains from Form 2439.

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