About Schedule D (Form 1040), Capital Gains and Losses | Internal Revenue Service
Summary: Schedule D (Form 1040) is used by taxpayers to report capital gains and losses from the sale or exchange of capital assets, including investment transactions, capital gain distributions, and nonbusiness bad debts.
Schedule D (Form 1040) is the official IRS form used to report capital gains and losses for the 2025 tax year. It categorizes transactions into short-term (assets held one year or less) and long-term (assets held more than one year). Taxpayers use this form to calculate net capital gains or losses, which are then reported on Form 1040, 1040-SR, or 1040-NR. The form requires integration with Form 8949 for listing specific transactions and includes a summary section to determine tax treatment, including potential loss limitations and tax worksheets for specific types of gains.
Document outline
1. Part I: Short-Term Capital Gains and Losses (Assets held one year or less) 2. Part II: Long-Term Capital Gains and Losses (Assets held more than one year) 3. Part III: Summary of Gains and Losses 4. Instructions for reporting net gains or losses on Form 1040, 1040-SR, or 1040-NR 5. Worksheet references for 28% Rate Gain, Unrecaptured Section 1250 Gain, and Qualified Dividends