Take a moment to review what you have covered in this lesson.

Completion of Schedule D requires information from Forms 1099-B and 1099-DIV or 1099 Consolidated Statement and from taxpayer records (basis in the stock sold and purchase date). A taxpayer who is carrying over a loss from a previous year must also provide the Capital Loss Carryover Worksheet from that year's Schedule D instructions.

Form 1099-B information reported on Schedule D includes date of sale, sales price, and description of property sold. The broker checks the appropriate square at the right of box 2 to indicate whether the gross or net proceeds were reported to the IRS. Federal income tax withheld is included in the total entered on line 62 of Form 1040.