If you have transactions to report on line 1 or line 8 of Schedule D, go to our Capital Gains and Losses Worksheet and enter the information there. We automatically sort your transactions according to whether they are short- or long-term, and carry the description, dates, cost and price to the appropriate line of Schedule D: line 1 for short-term sales, and line 8 for long-term sales.
We'll be able to determine the holding period for a transaction based on the acquisition and sale dates you enter on the Capital Gains and Losses Worksheet. If the dates are more than a year apart, the transaction is long-term; otherwise, it is short-term. There are some special cases, however.
One exception is for property you purchased on "various" dates. If you entered "var-L" ("various") for the acquisition date on the Capital Gains and Losses Worksheet, we'll carry the transaction to the long-term transaction lines of Schedule D, because by entering "var-L" you have told us the property was held long-term. Similarly, if you entered "var-s" we carry the transaction to the short-term transaction lines of Schedule D. In either case, once we carry the transaction to the correct line of Schedule D we replace "var-s" or "var-L" with "various", to comply with the IRS instructions.
Another exception is for property for which you have entered "inherit" for the acquisition date. All sales of inherited property are regarded by the IRS as having been held long-term, so we carry all such sales to the long-term transaction portions of Schedule D.
Losses on the sale of personal use property (code P) are not deductible. We enter code P transactions on Schedule D the same way as any other, if there is a gain. If there is a loss, we bring over all the information to Schedule D, but leave column (f) blank.
Use the Sale of Home Worksheet to report the sale of your home. If you sold your home this year and have gain to report in spite of the $250,000 (or $500,000) exclusion available when you sell your home, we enter the entire gain on line 1. On the following line, we enter the amount of your exclusion as a loss.
If you have more than five short-term sales, we'll carry the sixth and following sales to page 1 of Schedule D-1, the short-term continuation sheet for Schedule D. The total price and net gain of loss from the continuation sheet are then carried to Schedule D, line 2d.
Installment sales carry to line 4af from Form 6252, lines 26 and 37, if you have designated that copy of Form 6252 as a short-term sale. Make this designation at the top of Form 6252.
Line 5f, is carried from K-1 worksheet lines 8 and i, plus the K-1 Estate and Trust worksheet line 3.
If you have more than 5 long-term sales, we'll carry the sixth and following sales to page 2 of Schedule D-1, the continuation sheet for Schedule D. The total price and net gains and losses from the continuation sheets are then carried to Schedule D, line 9d.
Use the Sale of Home Worksheet to report the sale of your home. If you sold your home this year and have gain to report in spite of the $250,000 (or $500,000) exclusion available when you sell your home, we enter the entire gain on line 8. On the following line, we enter the amount of your exclusion as a loss.
Installment sales carry to Schedule D, line 11c from Form 6252, lines 26 and 37, if you have designated that copy of Form 6252 as a long-term sale. (Make this designation at the top of Form 6252.)
Line 12f, is carried from K-1 worksheet lines 9a and j, plus the K-1 Estate and Trust worksheet line 4a.
We enter on line 13f capital gain distributions from Schedule B 1099-DIV worksheets, and any capital gain distributions calculated on Form 8814, line 000.
The calculation of carryover losses does not affect this year's tax return. It affects next year's tax return only.