Question

I am in need of Schedule D instructions. How do I complete a Schedule D tax form?

Answer

What is an IRS Schedule D?

Schedule D (Form 1040) is a tax schedule from the IRS that attaches to the Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, or Form 1040NR. It is used to help you calculate their capital gains or losses, and the amount of taxes owed. Computations from Schedule D are reported on the Form 1040, affecting your adjusted gross income.

Schedule D Instructions

Regarding Schedule D instructions, if you have any sales of capital assets, you must first complete Form 8949, Sales and Dispositions of Capital Assets.

You’ll use the information from Form 8949 to complete Schedule D.

  • Use Part I for sales of short-term assets — held for one year or less.
  • Use Part II for sales of long-term assets — held for more than one year.

You’ll need this information to complete Form 8949:

tax forms

  • Description of property
  • Purchase price
  • Purchase date
  • Selling price
  • Selling date
  • Adjustments

After you enter this information, you’ll calculate the gain or loss in the last column. Enter the totals at the bottom of each part. Then, enter the results on the Schedule D tax form, on the appropriate lines (1, 2, 3, 8, 9 or 10). Enter in Parts I (for short-term) and II (for long-term) the amounts that correspond, Parts I and II. In Part III of Schedule D, you’ll combine Parts I and II into a summary. Then, you’ll calculate:

  • Which tax calculation form to use
  • How much capital gain or loss to report on Form 1040

You’ll then fill in other applicable information on the Schedule D tax form. This information includes:

  • Gains and losses from other forms — like Forms 4797, 6252, 8824, and others
  • Gains and losses from Schedule K-1
  • Loss carryovers

More Help Filling Out the Schedule D Tax Form

If you need more help completing the Schedule D tax form, enlist help from H&R Block! Whether you make an appointment with one of our knowledgeable tax pros or choose one of our online tax filing products, you can count on H&R Block to help you get your taxes done and won.

Related Topics

Related Resources

Direct Debit Installment Agreement (DDIA)

Learn about IRS direct debit installment agreements (DDIA), which can get you a lower user fee. Get the facts from the tax experts at H&R Block.

IRS Notice CP12M – Making Work Pay and/or Government Retiree Credit Computed

The IRS made a change to the Making Work Pay and/or Government Retiree Credit on your tax return. Learn more about IRS notice CP12M from H&R Block.

IRS Tax Rules for Full Time Students

Learn more about IRS tax rules for full time students from the tax experts at H&R Block.

Can I File My State Taxes Before My Federal Taxes?

Wondering if you can file your state taxes before your federal taxes? Learn from the tax pros at H&R Block when this option is possible.