Capital Gains and Losses - Schedule D

Attach Schedule D to your 1040 to report your capital gains and losses.

Starting in 2011 there is a new form that also deals with capital gains and losses, Form 8949 [Sales and Other Dispositions of Capital Assets]. For taxes from a year prior to 2011, you will still need to report everything on Schedule D. But for 2011, complete both Schedule D and Form 8949.

Starting in 2011 complete Form 8949 first to report

the sale or exchange of capital assets

gains from involuntary conversions of capital assets, and

nonbusiness bad debts

Then complete Schedule D to report

overall gain or loss from Form 8949

gains from Form 2439 [Notice to Shareholder of Undistributed Long-Term Capital Gains], Form 6252 [Installment Sale Income], or Part I of Form 4797 [Sales of Business Property]

gains or losses from Form 4684 [Casualties and Thefts], Form 6781 [Gains and Losses from Section 1256 Contracts and Straddles], or Form 8824 [Like-Kind Exchanges]

gains or losses from a partnership, S corporation, estate, or trust

capital gain distributions not reported directly on your 1040

capital loss carryover from the previous year