Schedule D: Capital Gains and Losses (2025)
Federal · IRS · Used for tax years 2025
Schedule D (Form 1040) reports short-term and long-term capital gains and losses, capital gain distributions, and capital loss carryovers. It combines these amounts to determine the net capital gain or loss and attaches to Form 1040, 1040-SR, or 1040-NR.
Who files this form
Use Schedule D for tax year 2025 to:
- Figure the 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 Forms 2439 or 6252 or Part I of Form 4797, or gains and losses from Forms 4684, 6781, or 8824.
- Report gains or losses from a partnership, S corporation, estate, or trust.
- Report capital gain distributions not reported directly on Form 1040 or 1040-SR, line 7a, or effectively connected capital gain distributions not reported directly on Form 1040-NR, line 7a.
- Report a capital loss carryover from 2024 to 2025.
What you'll need
Depending on your transactions, have these forms and records available:
- Forms 1099-B and 1099-DA: For reported sales proceeds, basis, and other transaction information.
- Form 8949: Complete all necessary pages before filling in Schedule D lines 1b, 2, 3, 8b, 9, or 10.
- Basis records: Keep accurate records of purchase price, commissions, and changes to basis, such as improvements, depreciation, nondividend stock distributions, and stock splits.
- Form 1099-DIV: For capital gain distributions, including the amount in box 2a.
- Schedules K-1: For capital gains or losses from partnerships, S corporations, estates, or trusts.
- Other applicable forms: Forms 2439, 6252, 4797, 4684, 6781, and 8824 may supply amounts for Schedule D.
- Your 2024 Schedule D and income tax return: These are used to determine whether you have a capital loss carryover to 2025.
How to file
Attach Schedule D to Form 1040, 1040-SR, or 1040-NR.
Use Form 8949 to list transactions for Schedule D lines 1b, 2, 3, 8b, 9, and 10. If you disposed of an investment in a qualified opportunity fund during 2025, check “Yes” to the question at the top of Schedule D, attach Form 8949, and see its instructions for additional reporting requirements.
Common mistakes
- Counting the same transactions twice: If you choose to report all transactions eligible for line 1a or 8a on Form 8949 instead, leave the corresponding line 1a or 8a blank.
- Leaving out capital losses you cannot use this year: Report all your capital gains and losses even if you cannot use all your losses in 2025.
- Comparing negative numbers incorrectly on line 21: Treat both loss amounts as positive numbers when deciding which is smaller.
- Missing line 22 after a net loss: If line 16 is a loss, skip lines 17 through 20, complete line 21, and be sure to complete line 22.
- Forgetting annual QOF reporting: If you elect to defer eligible gain by investing in a qualified opportunity fund, complete Form 8997 for each year you hold the investment and for the year you dispose of it.
Questions people ask
What is the difference between short-term and long-term gains or losses?
Generally, assets held one year or less are short term and belong in Part I. Assets held more than one year are generally long term and belong in Part II. Special holding-period rules apply to certain partnership interests.
Can I report transactions directly on Schedule D without Form 8949?
Lines 1a and 8a allow totals for transactions reported on Form 1099-B or Form 1099-DA for which basis was reported to the IRS and you have no adjustments. You may choose to report these transactions on Form 8949 instead.
How much of a net capital loss can I report on my 2025 return?
If Schedule D line 16 is a loss, line 21 directs you to enter the smaller of that loss or $3,000, or $1,500 if married filing separately. Enter the amount on your income tax return, line 7a, too. You may be able to use losses exceeding the limit in future years.
Do I have to report the sale of my main home?
Report the sale on Form 8949 if you cannot exclude all of your gain from income or you received Form 1099-S for the sale. If reporting is required, complete Form 8949 before Schedule D. A loss on the sale of a home held for personal use is not deductible.