Schedule D - Other Menu

How Can I Enter Information on Schedule D? 

There are several lines on Schedule D and related worksheets that require direct entry in addition to the information that flows from Form 1099-B that is entered in the Schedule D menu. To get access to such lines; 

• Go to the Main Menu of the Tax Return (Form 1040) 
• From the menu, select Income 
• Then select Capital Gain Loss (Sch D) 
• Then click on the Other button 

Additional Capital Gain Distributions - On this lion, enter the capital gain distributions that were not entered anywhere else in the return. There are two possible entries: 

• Additional Capital Gain Distributions - this will flow to Line 13 of Schedule D 
• Additional Capital Gain Distributions 28% Column - this will flow to the 28% Rate Gain Worksheet Line 4

Short Term 1099-B Transactions with no Adjustments - As an alternative to entering different 1099-Bs, you are able to aggregate short-term 1099-B gain/loss transactions here if they attain the following criteria: 

• The 1099-B Boxes 1f and 1g are blank;
• The 1099-B Box 2 "Ordinary" checkbox isn't checked;
• The 1099-B Box 3 "QOF" checkbox isn't checked;
• The 1099-B Box 12 shows basis reported to the IRS;
• The taxpayer isn't electing to defer income due to investing in a QOF, nor terminating deferral from a QOF investment;
• There are no other adjustments needed to the basis or to the gain/loss on the 1099-B;
• The type of gain or loss (short-term, long-term, or ordinary) isn't being changed.

First enter the aggregate proceeds followed by the aggregate cost. Both of these flow to Line 1a of Schedule D. 

Long-Term 1099-B Transactions with No Adjustments - this is similar to the above though for long-term 1099-B transactions. Both amounts flow to Line 8a of Schedule D. 

Short Term Gain/Loss Like-Kind Exchange - This amount will flow to Line 4 of Schedule D and is the sum of short-term like-kind gains from; 

• Form 6252 
• Short-term gains and losses from Forms 4684, 6781 and 8824. 

Long Term Gain/Loss Like-Kind Exchange - The amount that will be entered here will flow to Line 11 of Schedule D and is the sum of long-term like-kind gains from; 

• Form 4797 Part I
• Long-term gains from Forms 2439 and 6252
• Long-term gains or losses from Forms 4684, 6781, and 8824.

Also asked about here is the sum of all collectibles gain or loss from: 

• Form 4684, line 4 (assuming an overall gain on Form 4684 Line 15)
• Form 6252
• Form 6781, Part II
• Form 8824

Long Term Like-Kind Exchange 28% Rate Amount - The amount that is entered here wll flow to the 28% Rate Gain Worksheet Line 3. 

Short-Term Loss Carryover from (Prior year) - The amount that is entered here will flow to Schedule D Line 6 and is the short-term capital loss that is carried over from the previous year. If need be, use the Capital Loss Carryover Worksheet in Schedule D. 

Long term Loss Carryover from (Prior Year) - The amount that is entered here will flow to Line 14 of Schedule D and is long-term capital loss that is carried over from the previous year. If need be, use the Capital Loss Carryover Worksheet in Schedule D. 

Form 6781 - Gains/Losses from Sec 1256 Gains & Straddles - this is selected so as to complete Form 6781, Gains and Losses From Section 1256 Contracts and Straddles. 

Sale of Main Home Worksheet - This Worksheet is completed so as to determine the amount excludable from income from the sale of the main home of the taxpayer. 

Adjust 28% Rate/1250 Worksheets - The 28% Rate Gain Worksheet as well as the Unrecaptured Section 1250 Gain Worksheet are instantaneously produced as required with information that is reported elsewhere in the return. You should note that every worksheet has lines that require direct entry. 

Form 8997 - Qualified Opportunity Fund Investments Statement - This is used to fill Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. It is through this form that the IRS is informed of the QOF investments and the deferred gains that were held at the beginning and end of the present tax year, deferred capital gains associated with QOF investments and dispositions of QOF investments within the year. 

Disposed of Qualified Opportunity Fund Investments - To the confirmation question, answer YES in case there is any QOF investment was disposed of within the year. The IRS requires that you make entries that are related to the disposition on Form 8949 and Form 8997. 

Is Schedule D Required? - Schedule D is not needed if the only capital gain distribution reported on box 2a, 2b, 2c and 2d of 1099-DIV are zero. If that is the case, this line will show NO and the checkbox on Line 6 of Form 1040 showing that Schedule D is not needed will be checked (before 2019, the check box is available on Schedule 1). Since Schedule D is not needed, it will not print alongside the print options. However, should you wish to print it, it is under View Results. You can change this line from NO to YES if you so wish. Otherwise,this line is unchangeable if it automatically shows YES. 

Attach PDF Document - when several transactions are summarized into one short-term and/or long-term transaction line on Form 8949, add a PDF copy bearing the details for those transactions here. 

 

Additional Information:

IRS: Schedule D instructions