IRS Schedule D (Form 1040 or 1040-SR) is a tax form taxpayers use to report the capital gains and losses resulting from the sale or exchange of capital assets. This includes profits or losses from assets such as stocks, bonds, real estate, and other forms of property. The primary purpose of Schedule D is to calculate the total capital gains tax that may be owed based on these transactions.
Schedule D is divided into sections to differentiate between short-term and long-term capital gains and losses. Short-term capital gains from assets held for one year or less are taxed at the taxpayer’s ordinary income tax rate, whereas long-term gains from assets held for more than a year benefit from lower tax rates. This form also helps taxpayers apply losses against gains to reduce taxable income, with the ability to carry excess losses to future tax years.
Other IRS Forms for Individuals
An individual’s tax return might go with some schedules that contain additional information for the IRS. Read about other schedules and IRS forms that you might need.