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Capital Gains and Losses Form: Capital Gains and Losses
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Schedule D (Form 1040) in short
Schedule D is the summary of your capital gains and losses for the year. It brings together the totals from Form 8949, gains and losses from K-1s and other forms, capital gain distributions, and loss carryovers from last year. Part III nets everything and tells you what goes on Form 1040, 1040-SR, or 1040-NR, line 7a. The current version is for tax year 2025.
| Issued by | Internal Revenue Service (IRS) |
|---|---|
| Current version | 2025 (checked 2026-10-25) |
| Who fills it in | Individuals who sold or exchanged a capital asset such as stock, bonds, or digital assets, or who have capital gains or losses from a partnership, S corporation, estate, trust, or certain other forms. The Form 1040 instructions say you do not need Schedule D if your only capital gains are capital gain distributions in box 2a of Form 1099-DIV, you have no capital losses, boxes 2b to 2d are empty, and you are not deferring gain in a qualified opportunity fund. |
| Who receives it | The IRS, as an attachment to Form 1040, 1040-SR, or 1040-NR. |
| Where to send it | Attach it, with any Forms 8949, to your return and file it with the return, by e-file or by mail. |
| Deadline | Filed with your 2025 income tax return. The Form 1040 instructions give April 15, 2026, as the due date for most 2025 calendar year returns, not counting extensions. |
| Official links | Official page · Official PDF · Official instructions |
What changed
For 2025, codes G to L were added to lines 1b, 2, 3, 8b, 9, and 10 for digital asset transactions, and lines 1a and 8a now also cover transactions reported on Form 1099-DA. The instructions also note a possible basis adjustment for qualified opportunity fund deferrals that meet the 7-year holding period.
How to fill out Schedule D (Form 1040), line by line
| Top question | Qualified opportunity fund Answer whether you disposed of any investment in a qualified opportunity fund during the year. If Yes, attach Form 8949 and follow its extra reporting rules. |
| Lines 1a and 8a | Totals not reported on Form 8949 You can enter aggregate totals here for sales where Form 1099-B or 1099-DA shows basis was reported to the IRS and you need no adjustments. Line 1a is short term and line 8a is long term. Sales of collectibles cannot go here. If you use these lines, do not also list those sales on Form 8949. |
| Lines 1b, 2, 3 and 8b, 9, 10 | Totals from Form 8949 Each line takes the totals from the Forms 8949 with a matching box checked. For example, line 1b takes Box A or Box G, and line 10 takes Box F or Box L. Complete Form 8949 first. |
| Lines 4, 5, 11, 12 | Gains from other forms and K-1s Lines 4 and 11 take amounts from forms such as 6252, 4684, 6781, 8824, 2439, and Form 4797, Part I. Lines 5 and 12 take net gains or losses from partnerships, S corporations, estates, and trusts shown on Schedule K-1. |
| Line 13 | Capital gain distributions Enter the total from box 2a of your Forms 1099-DIV, no matter how long you held the fund. If you received them as a nominee, enter only your share and attach a statement. |
| Lines 6 and 14 | Loss carryovers from 2024 Short-term carryover goes on line 6 and long-term on line 14. Figure them with the Capital Loss Carryover Worksheet in the instructions, using your 2024 return. |
| Lines 7, 15, 16 | Net short-term, net long-term, and combined result Line 7 is net short term, line 15 is net long term, and line 16 combines them. A gain on line 16 goes to Form 1040, 1040-SR, or 1040-NR, line 7a. |
| Lines 17 to 20 | Rate worksheets If lines 15 and 16 are both gains, check whether you need the 28% Rate Gain Worksheet (line 18) or the Unrecaptured Section 1250 Gain Worksheet (line 19). Line 20 tells you which tax worksheet to use. |
| Line 21 | Deductible loss If line 16 is a loss, enter the smaller of that loss or $3,000 ($1,500 if married filing separately). Any loss above this may carry over to 2026. |
| Line 22 | Qualified dividends If you have qualified dividends on line 3a of your return, use the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 instructions. |
Common mistakes to avoid
- Filling in lines 1b to 3 or 8b to 10 before completing Form 8949. The instructions say to complete all Forms 8949 first.
- Reporting the same sales on line 1a or 8a and also on Form 8949.
- Putting sales that need adjustments, or sales of collectibles, on line 1a or 8a.
- Forgetting last year's capital loss carryover on lines 6 and 14.
- Entering a net loss larger than $3,000 ($1,500 if married filing separately) on line 21.
- Deducting a loss on personal-use property such as your own car. The instructions say such a loss is not deductible.
- Mixing up short-term and long-term. Generally, short term is held 1 year or less and long term is more than 1 year.
Questions about Schedule D (Form 1040)
Do I need Schedule D if I only got capital gain distributions from a fund?
Often not. The Form 1040 instructions say you can skip Schedule D if your only capital gains are box 2a distributions, you have no capital losses, boxes 2b, 2c, and 2d are empty, and you are not deferring gain in a qualified opportunity fund.
How much capital loss can I deduct in one year?
Line 21 limits it to $3,000, or $1,500 if married filing separately. A larger loss may carry over to the next year.
Do I have to report selling my home?
Not always. The instructions say to report it on Form 8949 if you cannot exclude all the gain or you received Form 1099-S. Generally, you can exclude up to $250,000 of gain, or $500,000 on a joint return, if you meet the ownership and use tests.
What is the difference between Schedule D and Form 8949?
Form 8949 lists each sale. Schedule D adds up those totals with other gains and losses, applies carryovers, and gives the final amount for your return.
Where do digital asset sales go?
Digital asset sales are reported on Form 8949 with boxes G to L, and the totals go on the matching Schedule D lines. Lines 1a and 8a can be used for Form 1099-DA sales that meet the conditions.
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Checked against the official sources on 2026-10-25. PDF Editor Hub is not affiliated with the Internal Revenue Service or any government agency. This page is general information, not legal or tax advice.