Schedule D used to be easy. Maybe easy isn’t the word to use; but i was simple compared to what the IRS requires now.
To begin with, Schedule D is the Capital Gain Loss form. It is the form used to report gain and losses on sale of investments or capital property. It also is used to report Capital Gain Distributions.
However, the IRS began requiring a new form to accompany the Schedule D. The new form is the Form 8949.
The 8949 is broken up into two parts. Just like Schedule D, you have long-term and short-term. Another part of the form is whether basis has or has not been reported to the IRS., or if you didn’t receive a 1099.
Investment companies report on the 1099s they send you whether it a Short-term or a long-term gain and whether the basis has been reported to the IRS.
The Form 9949 Detail is summarized on Schedule D.
If you have several investments that you have sold, you can summarized the transactions on the 8949 and attach a copy of the transactions to the return.
While it looks different than in the past, Schedule D still looks the same in all aspects. You just have to remember to attach the Form 8949 to show the detail of Schedule D.
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