Schedule D (IRS) - Explained
What is Schedule D?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Schedule D?
Schedule D is a form attached to the Individual Income Tax Return Form (1040) that individuals use to report their capital gains and losses for a particular year. In the United States, the Internal Revenue Service (IRS) mandates individuals to report gains and losses made on capital assets for every year, the report is made using the Schedule D form. Capital losses and gains made on capital assets such as bonds, stocks and properties are reported to the IRS using schedule D. When individuals who use capital assets for investment purposes make gains or losses, they are required to file a report.
How Is Schedule D Used?
There are specific instructions that the schedule D form contains which individuals must pay attention to when filing their annual capital gains and losses with the IRS. For instance, individuals might be required to submit information from other tax forms when filing a Schedule D. The tax information that is required also varies depending on the tax situations of individuals. Below is a breakdown of other tax forms that might be required when filing a schedule D;
- Form 8949 ( for taxpayers that sell their investments or homes)
- Form 4797 ( for those that sell a business property)
- Form 6252 ( for individuals with installment sale income)
- Form 4648 (For people who have made losses due to casualty or theft loss)
- Form 8824 (for taxpayers that make an exchange which is like-kind).