Schedule D Components

There are 2 parts to Schedule D, to separate short and long term gains and losses.

Within each part, there are 3 reporting types, that refer to whether cost basis was reported to the IRS.

This yields a total of 6 scenarios, 2 parts times 3 types. The 6 scenarios map directly to Form 8949.

Part 1 is for short term gains and losses, sales of capital assets held 1 year or less. The reporting types map directly to box A-B-C of Form 8949.

Part 2 is for long term gains and losses, sales of capital assets held more than 1 year. The reporting types map directly to box D-E-F of Form 8949.

Part 1 includes a line to enter any short term capital loss carryover. Likewise, Part 2 includes a line to enter any long term capital loss carryover.

When Schedule D is completed, it will show sub-totals from Form 8949 by part and type.