Capital Gains and Losses


Introduction

These instructions explain how to complete Schedule D (Form 1040). Complete Form 8949 before you complete line 1b, 2, 3, 8b, 9, or 10 of Schedule D.

Use Schedule D:

  • To figure the overall gain or loss from transactions reported on Form 8949,

  • To report certain transactions you do not have to report on Form 8949,

  • To report a gain from Form 2439 or 6252 or Part I of Form 4797,

  • To report a gain or loss from Form 4684, 6781, or 8824,

  • To report a gain or loss from a partnership, S corporation, estate or trust,

  • To report capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14), and

  • To report a capital loss carryover from 2012 to 2013.

Additional information.   See Pub. 544 and Pub. 550 for more details.

Future Developments

For the latest information about developments related to Schedule D and its instructions, such as legislation enacted after they were published, go to www.irs.gov/scheduled.

What's New

Form 8949.   For 2013, you can combine certain transactions and report the totals on line 1a or 8a of Schedule D without completing Form 8949. For additional information, see the instructions for Lines 1a and 8a.

Tax rate on net capital gain and qualified dividends.   The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers. The Schedule D Tax Worksheet in these instructions reflects this new, higher rate.


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