Schedule D: Capital Gains and Losses (2024)
Federal · IRS · Used for tax years 2024
Schedule D (Form 1040) reports and combines short-term and long-term capital gains and losses, including capital gain distributions and capital loss carryovers. It is attached to Form 1040, 1040-SR, or 1040-NR.
Who files this form
Use Schedule D for tax year 2024 to:
- Figure your overall gain or loss from transactions reported on Form 8949.
- Report certain transactions that do not need to be reported on Form 8949.
- Report gains from Form 2439, Form 6252, or Part I of Form 4797.
- Report gains or losses from Form 4684, 6781, or 8824, or from a partnership, S corporation, estate, or trust.
- Report capital gain distributions not reported directly on Form 1040 or 1040-SR, line 7. For Form 1040-NR, this applies to effectively connected capital gain distributions not reported directly on line 7.
- Report a capital loss carryover from 2023 to 2024.
What you'll need
Depending on your transactions, have these forms and records available:
- Forms 1099-B or substitute statements showing sales proceeds, basis, and any reported adjustments.
- Basis records showing purchase price, commissions, and changes such as improvements, depreciation, nondividend distributions, and stock splits.
- Completed Forms 8949 for transactions reported on Schedule D, lines 1b, 2, 3, 8b, 9, and 10.
- Forms 1099-DIV for capital gain distributions and Schedules K-1 for gains or losses from partnerships, S corporations, estates, or trusts.
- Forms 2439, 6252, 4797, 4684, 6781, or 8824, if they contain gains or losses you must report on Schedule D.
- Capital Loss Carryover Worksheet, if you have a carryover from 2023 to 2024.
If you disposed of a qualified opportunity fund investment during 2024, attach Form 8949 and complete Part III of Form 8997.
How to file
Attach Schedule D to Form 1040, 1040-SR, or 1040-NR.
Complete all necessary pages of Form 8949 before completing Schedule D, lines 1b, 2, 3, 8b, 9, or 10.
If you choose to report eligible transactions directly on lines 1a and 8a, do not also report them on Form 8949. You do not need to attach a statement explaining those entries. If you e-file your return, you do not need to file Form 8453 for those entries.
Instructions and the latest information are available at www.irs.gov/ScheduleD.
Common mistakes
- Leaving out losses you cannot use this year. The instructions remind you to report all capital gains and losses even if you cannot use all your losses in 2024.
- Reporting the same transactions twice. If you report eligible transactions directly on lines 1a and 8a, do not also report them on Form 8949.
- Rounding inconsistently. If you round to whole dollars, round all amounts. When adding amounts for one line, include cents in the calculation and round only the total.
- Missing qualified opportunity fund reporting. If you disposed of a QOF investment, answer the question on page 1, attach Form 8949, and complete Part III of Form 8997.
- Assuming an unreported wash sale loss is deductible. The instructions warn that a wash sale loss is not deductible even if it is not shown on Form 1099-B, except for the stated dealer exception.
- Comparing negative amounts incorrectly on line 21. Treat both amounts as positive numbers when deciding which loss amount is smaller.
Questions people ask
What is the difference between short-term and long-term gains or losses?
Generally, assets held for one year or less produce short-term gains or losses, reported in Part I. Assets held for more than one year generally produce long-term gains or losses, reported in Part II. Certain applicable partnership interests have a longer holding-period rule.
How much capital loss can I deduct for 2024?
You can deduct capital losses up to your capital gains plus $3,000, or $1,500 if married filing separately. You may be able to use losses above this limit in future years.
Where do I report capital gain distributions?
On Schedule D, enter your total capital gain distributions on line 13. The amount is shown in Form 1099-DIV, box 2a, and applies regardless of how long you held the investment. If you received distributions that actually belong to someone else, report only your share and attach a statement showing the full amount and the amount received for the other person.
Do I have to report the sale of my main home?
You must report the sale or exchange on Form 8949 if you cannot exclude all the gain from income or you received Form 1099-S. Complete Form 8949 before Schedule D. A loss on the sale of a home held for personal use is not deductible.