You use Schedule D to report any of the following:
- the sale or exchange of a capital asset not reported on another form or schedule
- gains and losses not including casualty or theft and not including assets held for business
- capital gain distributions not reported on Form 1040, line 13
- and non-business bad debts.
If you need more detailed information on Schedule; see IRS Publication 550.
Schedule D is a fairly complex form and tax professionals usually charge from the high end to complete this form. This is not a form that you want to make errors on.
This is the form where you report the sale of stock, short term and long term investments, capital gain distributions (real estate investments) sale of your home if your gain exceeded your exclusion and collectibles gains, mutual fund gains not included as dividends.
The holding period for short-term capital gains and losses is 1 year or less. The holding period for long-term capital gains and losses is more than 1 year. To figure the holding period, begin counting on the day after you received the property and include the day you sold it.
If you sold property that you acquired by inheritance, report the distribution as a long-term gain or loss, regardless of how long you had the property.
There are many other details that make up the Schedule D. For more information go to www.irs.gov and put in keywords: schedule d or publication 550
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