Έντυπο 1040 Οδηγίες προγραμματισμού Δ
Οδηγίες για το πρόγραμμα Δ (Έντυπο 1040 ή Έντυπο 1040-SR), Κέρδη και ζημίες κεφαλαίου
Αναθ. 2023
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- Έντυπο 1040 Πρόγραμμα Δ - Κέρδη και ζημίες κεφαλαίου
Department of the Treasury
Internal Revenue Service
2023 Instructions for Schedule D
These instructions explain how to complete Schedule D (Form 1040). Complete Form
8949 before you complete line 1b, 2, 3, 8b, 9, or 10 of Schedule D.
Capital Gains
Use Schedule D:
and Losses
To figure the overall gain or loss from transactions reported on Form 8949;
To report certain transactions you don't have to report on Form 8949;
To report a gain from Form 2439 or 6252 or Part I of Form 4797;
To report a gain or loss from Form 4684, 6781, or 8824;
To report a gain or loss from a partnership, S corporation, estate, or trust;
To report capital gain distributions not reported directly on Form 1040 or
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1040-SR, line 7 (or effectively connected capital gain distributions not reported direct-
ly on Form 1040-NR, line 7); and
To report a capital loss carryover from 2022 to 2023.
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Additional information. See Pub. 544 and Pub. 550 for more details.
Section references are to the Internal
Revenue Code unless otherwise noted.
er, for more information about when
Form 8949 is needed and when it isn't.
with your trading business, if you previ-
ously made a mark-to-market election.
Use Form 4797 to report the follow-
ing.
Future Developments
Use Form 4684 to report involuntary
conversions of property due to casualty
or theft.
For the latest information about devel-
opments related to Schedule D and its
instructions, such as legislation enacted
after they were published, go to IRS.gov/
1. The sale or exchange of:
a. Real property used in your trade
or business;
Use Form 6781 to report gains and
losses from section 1256 contracts and
straddles.
b. Depreciable and amortizable tan-
gible property used in your trade or
business (but see Disposition of Depre-
ciable Property Not Used in Trade or
Business in the Form 4797 instructions);
What’s New
Use Form 8824 to report like-kind
exchanges. A like-kind exchange occurs
when you exchange business or invest-
ment property for property of a like
kind.
Deferral of gain invested in a qualified
opportunity fund (QOF). Taxpayers
who made a deferral election in a QOF
that meets the 5-year holding period
threshold shall be eligible for the 10%
stepped up basis. See Form 8997 and its
instructions for additional information
regarding QOFs.
c. Oil, gas, geothermal, or other
mineral property; and
d. Section 126 property.
Use Form 8960 to figure any net in-
vestment income tax relating to gains
and losses reported on Schedule D, in-
cluding gains and losses from a securi-
ties trading activity.
2. The involuntary conversion (other
than from casualty or theft) of property
used in a trade or business and capital
assets held more than 1 year for business
or profit. But see Disposition of Depre-
ciable Property Not Used in Trade or
Business in the Form 4797 instructions.
General
Use Form 8997 to report each QOF
investment you held at the beginning
and end of the tax year and the deferred
gains associated with each investment.
Also, use Form 8997 to report any capi-
tal gains you are deferring by investing
in a QOF during the tax year and any
QOF investment you disposed of during
the tax year.
Instructions
3. The disposition of noncapital as-
sets other than inventory or property
held primarily for sale to customers in
the ordinary course of your trade or
business.
Other Forms You May Have
To File
Use Form 461 to figure your excess
business loss.
4. Ordinary loss on the sale, ex-
change, or worthlessness of small busi-
ness investment company (section 1242)
stock.
Use Form 8949 to report the sale or
exchange of a capital asset (defined lat-
er) not reported on another form or
schedule and to report the income defer-
ral or exclusion of capital gains. See the
Instructions for Form 8949. Complete
all necessary pages of Form 8949 before
you complete line 1b, 2, 3, 8b, 9, or 10
Capital Asset
Most property you own and use for per-
sonal purposes or investment is a capital
asset. For example, your house, furni-
ture, car, stocks, and bonds are capital
assets. A capital asset is any property
owned by you except the following.
5. Ordinary loss on the sale, ex-
change, or worthlessness of small busi-
ness (section 1244) stock.
6. Ordinary gain or loss on securi-
ties or commodities held in connection
D-1
Cat. No. 24331I
Oct 30, 2023
1. Stock in trade or other property
included in inventory or held mainly for
sale to customers in the ordinary course
of your trade or business. But see the
TIP about certain musical compositions
or copyrights, later.
8. Certain hedging transactions en-
tered into in the normal course of your
trade or business. See section 1221(a)(7)
and (b)(2).
For more information about holding
periods, see the Instructions for Form
8949.
Capital Gain Distributions
9. Supplies regularly used in your
trade or business.
These distributions are paid by a mutual
fund (or other regulated investment
company) or real estate investment trust
from its net realized long-term capital
gains. Distributions of net realized
short-term capital gains aren't treated as
capital gains. Instead, they are included
on Form 1099-DIV as ordinary divi-
dends.
2. Accounts or notes receivable:
You can elect to treat as capital
a. For services rendered in the ordi-
nary course of your trade or business,
assets certain musical composi-
tions or copyrights you sold or
TIP
b. For services rendered as an em-
ployee, or
exchanged. See Pub. 550 for details.
Basis and Recordkeeping
c. From the sale of stock in trade or
other property included in inventory or
held mainly for sale to customers.
Basis is the amount of your investment
in property for tax purposes. The basis
of property you buy is usually its cost.
There are special rules for certain kinds
of property, such as inherited property.
You need to know your basis to figure
any gain or loss on the sale or other dis-
position of the property. You must keep
accurate records that show the basis and,
if applicable, adjusted basis of your
property. Your records should show the
purchase price, including commissions;
increases to basis, such as the cost of
improvements; and decreases to basis,
such as depreciation, nondividend distri-
butions on stock, and stock splits.
Enter on Schedule D, line 13, the to-
tal capital gain distributions paid to you
during the year, regardless of how long
you held your investment. This amount
is shown in box 2a of Form 1099-DIV.
3. Depreciable property used in your
trade or business, even if it is fully de-
preciated.
4. Real estate used in your trade or
business.
If there is an amount in box 2b, in-
clude that amount on line 11 of the Un-
sheet in these instructions if you com-
plete line 19 of Schedule D.
5. A patent, invention, model, or de-
sign (whether or not patented); a secret
formula or process; a copyright; a liter-
ary, musical, or artistic composition; a
letter or memorandum; or similar prop-
erty that is:
If there is an amount in box 2c, see
Business (QSB) Stock, later.
a. Created by your personal efforts;
b. Prepared or produced for you (in
the case of a letter, memorandum, or
similar property); or
If there is an amount in box 2d, in-
clude that amount on line 4 of the 28%
Rate Gain Worksheet in these instruc-
tions if you complete line 18 of Sched-
ule D.
If you received a Schedule A to Form
8971 from an executor of an estate or
other person required to file an estate tax
return, you may be required to report a
basis consistent with the estate tax value
of the property.
c. Received under circumstances
(such as by gift) that entitle you to the
basis of the person who created the
property or for whom the property was
prepared or produced. See section
1221(a)(3).
If you received capital gain distribu-
tions as a nominee (that is, they were
paid to you but actually belong to some-
one else), report on Schedule D, line 13,
only the amount that belongs to you. At-
For more information on consistent
basis reporting and basis generally, see
Column (e)—Cost or Other Basis in the
Instructions for Form 8949, and the fol-
lowing publications.
compositions or copyrights below.
tach
a
statement showing the full
6. A U.S. Government publication,
including the Congressional Record, that
you received:
amount you received and the amount
you received as a nominee. See the In-
structions for Schedule B to learn about
the requirement for you to file Forms
1099-DIV and 1096.
Pub. 551, Basis of Assets.
Pub. 550, Investment Income and
Expenses.
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a. From the U.S. Government (or
any governmental agency) for an
amount other than the normal sales
price, or
Short- or Long-Term Gain or
Loss
Sale of Your Home
You may not need to report the sale or
exchange of your main home. If you
must report it, complete Form 8949 be-
fore Schedule D.
b. Under circumstances (such as by
gift) that entitle you to the basis of
someone who received the publication
for an amount other than the normal
sales price.
Report short-term gains or losses in Part
I. Report long-term gains or losses in
Part II. The holding period for
short-term capital gains and losses is
generally 1 year or less. The holding pe-
riod for long-term capital gains and los-
ses is generally more than 1 year. How-
ever, beginning in 2018, the long-term
holding period for certain gains with re-
spect to “applicable partnership inter-
ests” is more than 3 years. See Pub. 541
for more information.
Report the sale or exchange of your
main home on Form 8949 if:
7. Certain commodities derivative
financial instruments held by a dealer
and connected to the dealer's activities
as a dealer. See section 1221(a)(6) and
(b)(1).
You can't exclude all of your gain
from income, or
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You received a Form 1099-S for
the sale or exchange.
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Any gain you can't exclude is taxable.
Generally, if you meet the following two
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tests, you can exclude up to $250,000 of
gain. If both you and your spouse meet
these tests and you file a joint return,
you can exclude up to $500,000 of gain
(but only one spouse needs to meet the
Example. Tamara buys a house in
Virginia in 2011 that she uses as her
main home for 3 years. For 8 years,
from 2014 through 2022, Tamara serves
on qualified official extended duty as a
member of the uniformed services in
Kuwait. In 2023, Tamara sells the house.
Tamara didn't use the house as her main
home for at least 2 of the 5 years before
suspend the 5-year test period during her
8-year period of uniformed service in
Kuwait. Because that 8-year period
won't be counted in determining if she
used the house as her main home for 2
of the 5 years before the sale, she meets
the ownership and use requirements of
More information. See Pub. 523 for
additional details, including how to fig-
ure and report any taxable gain if:
You (or your spouse if married)
used any part of the home for business
or rental purposes after May 6, 1997; or
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Test 1. During the 5-year period ending
on the date you sold or exchanged your
home, you owned it for 2 years or more
(the ownership requirement) and lived in
it as your main home for 2 years or more
(the use requirement).
There was a period of time after
2008 when the home wasn't your main
home.
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Partnership Interests
A sale or other disposition of an interest
in a partnership may result in ordinary
income, collectibles gain (28% rate
gain), or unrecaptured section 1250
gain. For details on 28% rate gain, see
the instructions for line 18. For details
on unrecaptured section 1250 gain, see
the instructions for line 19.
Test 2. You haven't excluded gain on
the sale or exchange of another main
home during the 2-year period ending on
the date of the sale or exchange of your
home.
Reduced exclusion. Even if you don't
meet one or both of the above two tests,
you can still claim an exclusion if you
sold or exchanged the home because of
a change in place of employment,
health, or certain unforeseen circumstan-
ces. In this case, the maximum amount
of gain you can exclude is reduced. For
more information, see Pub. 523.
Qualified extended duty. You are on
qualified extended duty if:
Capital Assets Held for
Personal Use
You are called or ordered to active
duty for an indefinite period or for a pe-
riod of more than 90 days; and
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Generally, gain from the sale or ex-
change of a capital asset held for person-
al use is a capital gain. Report it on
Form 8949 with box C checked (if the
transaction is short term) or box F
checked (if the transaction is long term).
However, if you converted depreciable
property to personal use, all or part of
the gain on the sale or exchange of that
property may have to be recaptured as
ordinary income. Use Part III of Form
4797 to figure the amount of ordinary
income recapture. The recapture amount
is included on line 31 (and line 13) of
Form 4797. Don't enter any gain from
this property on line 32 of Form 4797. If
you aren't completing Part III for any
other properties, enter “N/A” on line 32.
If the total gain is more than the recap-
ture amount, enter “From Form 4797” in
column (a) of Part I of Form 8949 (if the
transaction is short term) or Part II of
Form 8949 (if the transaction is long
term), and skip columns (b) and (c). In
column (d) of Form 8949, enter the ex-
cess of the total gain over the recapture
amount. Leave columns (e) through (g)
blank. Complete column (h). Be sure to
check box C at the top of Part I or box F
at the top of Part II of this Form 8949
(depending on how long you held the as-
set).
You are serving at a duty station at
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least 50 miles from your main home, or
you are living in government quarters
under government orders.
Sale of home by surviving spouse. If
your spouse died before the sale or ex-
change, you can still exclude up to
$500,000 of gain if:
Sale of home acquired in a like-kind
exchange. You can't exclude any gain
if:
You acquired your home in a
like-kind exchange in which all or part
of the gain wasn't recognized, and
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The sale or exchange is no later
than 2 years after your spouse's death;
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Just before your spouse's death,
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You sold or exchanged the home
during the 5-year period beginning on
the date you acquired it.
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both spouses met the use requirement of
How to report the sale of your main
home. If you have to report the sale or
exchange, report it on Form 8949. If the
gain or loss is short term, report it in
Part I of Form 8949 with box C
checked. If the gain or loss is long term,
report it in Part II of Form 8949 with
box F checked.
You didn't remarry before the sale
or exchange.
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Exceptions to Test 1. You can choose
to have the 5-year test period for owner-
any period you or your spouse serves
outside the United States as a Peace
Corps volunteer or serves on qualified
official extended duty as a member of
the uniformed services or Foreign Serv-
ice of the United States, as an employee
of the intelligence community, or out-
side the United States as an employee of
the Peace Corps. This means you may
of your service, you didn't actually use
the home as your main home for at least
the required 2 years during the 5-year
period ending on the date of sale. The
5-year period can't be extended for more
than 10 years.
If you had a gain and can exclude
part or all of it, enter “H” in column (f)
of Form 8949. Enter the exclusion as a
negative number (in parentheses) in col-
umn (g) of Form 8949. See the instruc-
tions for Form 8949, columns (f), (g),
and (h). Complete all columns.
If you had a loss but have to report
the sale or exchange because you got a
later, for instructions about how to re-
port it.
Loss from the sale or exchange of a
capital asset held for personal use isn't
deductible. But if you had a loss from
the sale or exchange of real estate held
for personal use for which you received
D-3
a Form 1099-S, you must report the
transaction on Form 8949 even though
the loss isn't deductible. Also, if you had
a loss from the sale or exchange of per-
sonal property for which you received a
Form 1099-K, you must report the trans-
action on Form 8949 or on Schedule 1
(Form 1040) even though the loss isn’t
deductible.
A fiduciary of a trust and a fiducia-
ductible, enter “L” in column (f) and
$4,000 (the difference between $1,000
and $5,000) in column (g). In column
(h), enter -0- ($1,000 − $5,000 +
$4,000).
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ry (or beneficiary) of another trust if
both trusts were created by the same
grantor.
An executor of an estate and a ben-
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eficiary of that estate, unless the sale or
exchange was to satisfy a pecuniary be-
quest (that is, a bequest of a sum of
money).
At-risk rules. If you disposed of (a) an
asset used in an activity to which the
at-risk rules apply, or (b) any part of
your interest in an activity to which the
at-risk rules apply, and you have
amounts in the activity for which you
aren't at risk, see the Instructions for
Form 6198.
An individual and a tax-exempt or-
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Example. You have a loss on the
sale of a vacation home that isn't your
main home and you received a Form
1099-S for the transaction. Report the
transaction in Part I or Part II of Form
8949, depending on how long you
owned the home. Complete all columns.
Because the loss isn't deductible, enter
“L” in column (f). Enter the difference
between column (d) and column (e) as a
positive amount in column (g). Then
complete column (h). (For example, if
you entered $5,000 in column (d) and
$6,000 in column (e), enter $1,000 in
column (g). Then enter -0- ($5,000 −
$6,000 + $1,000) in column (h). Be sure
to check box C at the top of Part I or box
F at the top of Part II of this Form 8949
(depending on how long you owned the
home).)
ganization controlled directly (or indi-
rectly) by the individual or the individu-
al's family.
Passive activity rules. If the loss is al-
lowable under the at-risk rules, it may be
subject to the passive activity rules. See
Form 8582 and its instructions for de-
tails on reporting capital gains and los-
ses from a passive activity.
See Pub. 544 for more details on
sales and exchanges between related
parties.
Report a transaction that results in a
nondeductible loss in Part I or Part II of
Form 8949 (depending on how long you
held the property). Unless you received
a Form 1099-B for the sale or exchange,
check box C at the top of Part I or box F
at the top of Part II of this Form 8949
(depending on how long you owned the
property). Complete all columns. Be-
cause the loss isn't deductible, enter “L”
in column (f). Enter the amount of the
nondeductible loss as a positive number
in column (g). Complete column (h).
See the instructions for Form 8949, col-
umns (f), (g), and (h).
Items for Special Treatment
Transactions by a securities dealer.
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See section 475 and Rev. Rul. 97-39,
which begins on page 4 of Internal Rev-
enue Bulletin 1997-39 at IRS.gov/pub/
Bonds and other debt instruments.
See Pub. 550.
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Certain real estate subdivided for
sale that may be considered a capital as-
set. See section 1237.
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Capital Losses
You can deduct capital losses up to the
amount of your capital gains plus $3,000
($1,500 if married filing separately).
You may be able to use capital losses
that exceed this limit in future years. For
details, see the instructions for line 21.
Be sure to report all of your capital gains
and losses even if you can't use all of
your losses in 2023.
Gain on the sale of depreciable
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property to a more-than-50%-owned en-
tity or to a trust of which you are a bene-
ficiary. See Pub. 544.
Example 1. You sold land you held
as an investment for 5 years to your
brother for $10,000. Your basis was
$15,000. On Part II of Form 8949, check
box F at the top. Enter $10,000 on Form
8949, Part II, column (d). Enter $15,000
in column (e). Because the loss isn't de-
ductible, enter “L” in column (f) and
$5,000 (the difference between $10,000
and $15,000) in column (g). In column
(h), enter -0- ($10,000 − $15,000 +
$5,000). If this is your only transaction
on this Form 8949, enter $10,000 on
Schedule D, line 10, column (d). Enter
$15,000 in column (e) and $5,000 in
column (g). In column (h), enter -0-
($10,000 − $15,000 + $5,000).
Gain on the disposition of stock in
domestic international sales corpora-
tions. See section 995(c).
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Gain on the sale or exchange of
stock in certain foreign corporations.
See section 1248.
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Certain Nondeductible
Losses
You can’t deduct a loss from a sale or
exchange between certain related par-
ties. This includes a direct or indirect
sale or exchange of property between
any of the following.
Transfer of property to a partner-
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ship that would be treated as an invest-
ment company if it were incorporated.
See Pub. 541.
Sales of stock received under a
qualified public utility dividend rein-
vestment plan. See Pub. 550.
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Transfer of appreciated property to
a political organization. See section 84.
Members of a family.
A corporation and an individual
who directly (or indirectly) owns more
than 50% of the corporation's stock (un-
less the loss is from a distribution in
complete liquidation of a corporation).
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Example 2. You received a Form
1099-B showing proceeds (sales price)
of $1,000 and basis of $5,000. Box 7 on
Form 1099-B is checked, indicating that
your loss of $4,000 ($1,000 − $5,000)
isn't allowed. On the top of Form 8949,
check box A or box B in Part I or box D
or box E in Part II (whichever applies).
Enter $1,000 in column (d) and $5,000
in column (e). Because the loss isn't de-
Transfer of property by a U.S. per-
son to a foreign estate or trust. See sec-
tion 684.
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If you give up your U.S. citizen-
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ship, you may be treated as having sold
all your property for its fair market val-
ue on the day before you gave up your
citizenship. This also applies to
long-term U.S. residents who cease to be
A grantor and a fiduciary of a
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trust.
A fiduciary and a beneficiary of
the same trust.
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D-4
lawful permanent residents. For details,
exceptions, and rules for reporting these
deemed sales, see Pub. 519 and Form
8854.
ownership transaction was open in any
prior year, you may have to pay interest.
See section 1260(b) for details, includ-
ing how to figure the interest. Include
the interest as an additional tax on
Schedule 2 (Form 1040), line 17z. In the
space provided, enter “Section 1260(b)
interest” and the amount of the interest.
This interest isn't deductible.
bond method and the Ordinary box in
box 2 is checked, an adjustment may be
required. Report the transaction on Form
8949 and complete the form’s Work-
sheet for Contingent Payment Debt In-
strument Adjustment in Column (g) to
figure the adjustment to enter in column
(g) of Form 8949.
In general, no gain or loss is recog-
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nized on the transfer of property from an
individual to a spouse or a former
spouse if the transfer is incident to a di-
vorce. See Pub. 504.
See Pub. 550 or Pub. 1212 for more
details on any special rules or adjust-
ments that might apply.
Amounts received on the retire-
Gain or loss from the disposition
of stock or other securities in an invest-
ment club. See Pub. 550.
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ment of a debt instrument are generally
treated as received in exchange for the
debt instrument. See Pub. 550.
Certain virtual currencies, such as
Bitcoin. See the Instructions for Form
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Wash Sales
Any loss on the disposition of con-
verted wetland or highly erodible crop-
land that is first used for farming after
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A wash sale occurs when you sell or
otherwise dispose of stock or securities
(including a contract or option to acquire
or sell stock or securities) at a loss and,
within 30 days before or after the sale or
disposition, you:
If you are deferring eligible gain
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March 1, 1986, is reported as
a
by investing in a QOF, report the gain on
the form on which you normally report
the gain and report the deferral on Form
8949. See How To Report an Election to
Defer Tax on Eligible Gain Invested in a
QOF in the Form 8949 instructions.
long-term capital loss on Form 8949, but
any gain is reported as ordinary income
on Form 4797.
1. Buy substantially identical stock
or securities,
If qualified dividends that you re-
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ported on Form 1040, 1040-SR, or
1040-NR, line 3a, include extraordinary
dividends, any loss on the sale or ex-
change of the stock is a long-term capi-
tal loss to the extent of the extraordinary
dividends. An extraordinary dividend is
a dividend that equals or exceeds 10%
(5% in the case of preferred stock) of
your basis in the stock.
2. Acquire substantially identical
stock or securities in a fully taxable
trade,
Market Discount Bonds
In general, a capital gain from the dispo-
sition of a market discount bond is trea-
ted as interest income to the extent of
accrued market discount as of the date
of disposition. See sections 1276
through 1278 and Pub. 550 for more in-
formation on market discount. See the
Instructions for Form 8949 for detailed
information about how to report the dis-
position of a market discount bond.
3. Enter into a contract or option to
acquire substantially identical stock or
securities, or
4. Acquire substantially identical
stock or securities for your individual re-
tirement arrangement (IRA) or Roth
IRA.
Amounts received by shareholders
in corporate liquidations. See Pub. 550.
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Cash received in lieu of fractional
shares of stock as a result of a stock split
or stock dividend. See Pub. 550.
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You can't deduct losses from wash
sales unless the loss was incurred in the
ordinary course of your business as a
dealer in stock or securities. The basis of
the substantially identical property (or
contract or option to acquire such prop-
erty) is its cost increased by the disal-
lowed loss (except in the case of (4) ear-
lier).
Contingent Payment Debt
Instruments
Load charges to acquire stock in a
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regulated investment company (includ-
ing a mutual fund), which may not be
taken into account in determining gain
or loss on certain dispositions of the
stock if reinvestment rights were exer-
cised. See Pub. 550.
Any gain recognized on the sale, ex-
change, or retirement of a taxable con-
tingent payment debt instrument subject
to the noncontingent bond method is
treated as interest income rather than as
capital gain, even if you hold the debt
instrument as a capital asset. If you sell
a taxable contingent payment debt in-
strument subject to the noncontingent
bond method at a loss, your loss is an or-
dinary loss to the extent of your prior
original issue discount (OID) inclusions
on the debt instrument. If the debt in-
strument is a capital asset, treat any loss
that is more than your prior OID inclu-
sions as a capital loss. See Regulations
section 1.1275-4(b) for exceptions to
these rules.
The sale or exchange of S corpora-
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These wash sale rules don't apply to a
redemption of shares in a floating-NAV
(net asset value) money market fund.
tion stock or an interest in a partnership
or trust held for more than 1 year, which
may result in collectibles gain (28% rate
gain). See the instructions for line 18.
If you received a Form 1099-B (or
substitute statement), box 1g of that
form will generally show whether there
was any nondeductible wash sale loss
and its amount if:
Gain or loss on the disposition of
securities futures contracts. See Pub.
550.
•
Gain on the constructive sale of
certain appreciated financial positions.
See Pub. 550.
•
The stock or securities sold were
•
covered securities (defined in the in-
structions for Form 8949, column (e)),
and
Certain constructive ownership
•
transactions. Gain in excess of the gain
you would have recognized if you had
held a financial asset directly during the
term of a derivative contract must be
treated as ordinary income. See section
1260. If any portion of the constructive
The substantially identical stock or
•
If you received a Form 1099-B (or
substitute statement) reporting the sale
of a taxable contingent payment debt in-
strument subject to the noncontingent
securities you bought had the same CU-
SIP number as the stock or securities
you sold and were bought in the same
account as the stock or securities you
D-5
sold. (CUSIP numbers are security iden-
tification numbers.)
4797 instead of on Form 8949. Regard-
less of whether a trader reports his or her
gains and losses on Form 8949 or Form
4797, the gain or loss from the disposi-
tion of securities isn't taken into account
when figuring net earnings from
self-employment on Schedule SE. See
the Instructions for Schedule SE for an
exception that applies to section 1256
contracts.
Internal Revenue Bulletin 1999-7 at
However, you can't deduct a loss from a
wash sale even if it isn't reported on
Form 1099-B (or substitute statement).
For more details on wash sales, see Pub.
550.
If you hold securities for investment,
you must identify them as such in your
records on the day you acquired them
(for example, by holding the securities
in a separate brokerage account). Securi-
ties that you hold for investment aren't
marked to market.
Report a wash sale transaction in Part
I or Part II (depending on how long you
owned the stock or securities) of Form
8949 with the appropriate box checked.
Complete all columns. Enter “W” in col-
umn (f). Enter as a positive number in
column (g) the amount of the loss not al-
lowed. See the instructions for Form
8949, columns (f), (g), and (h).
Short Sales
The limitation on investment interest
expense that applies to investors doesn't
apply to interest paid or incurred in a
trading business. A trader reports inter-
est expense and other expenses (exclud-
ing commissions and other costs of ac-
quiring or disposing of securities) from a
trading business on Schedule C (instead
of Schedule A).
A short sale is a contract to sell property
you borrowed for delivery to a buyer. At
a later date, you either buy substantially
identical property and deliver it to the
lender or deliver property that you held
but didn't want to transfer at the time of
the sale.
Traders in Securities
You are a trader in securities if you are
engaged in the business of buying and
selling securities for your own account.
To be engaged in business as a trader in
securities, all of the following state-
ments must be true.
Example. You think the value of
XYZ stock will drop. You borrow 10
shares from your broker and sell them
for $100. This is a short sale. You later
buy 10 shares for $80 and deliver them
to your broker to close the short sale.
Your gain is $20 ($100 − $80).
A trader may also hold securities for
investment. The rules for investors will
generally apply to those securities. Allo-
cate interest and other expenses between
your trading business and your invest-
ment securities.
You must seek to profit from daily
•
market movements in the prices of se-
curities and not from dividends, interest,
or capital appreciation.
Holding period. Usually, your holding
period is the amount of time you actual-
ly held the property eventually delivered
to the broker or lender to close the short
sale. However, your gain when closing a
short sale is short term if you (a) held
substantially identical property for 1
year or less on the date of the short sale,
or (b) acquired property substantially
identical to the property sold short after
the short sale but on or before the date
you close the short sale. If you held sub-
stantially identical property for more
than 1 year on the date of a short sale,
any loss realized on the short sale is a
long-term capital loss, even if the prop-
erty used to close the short sale was held
1 year or less.
Mark-to-Market Election for
Traders
Your activity must be substantial.
You must carry on the activity with
continuity and regularity.
•
•
A trader may make an election under
section 475(f) to report all gains and los-
ses from securities held in connection
with a trading business as ordinary in-
come (or loss), including those from se-
curities held at the end of the year. Se-
curities held at the end of the year are
“marked to market” by treating them as
if they were sold for fair market value
on the last business day of the year.
Generally, the election must be made by
the due date (not including extensions)
of the tax return for the year prior to the
year for which the election becomes ef-
fective. To be effective for 2023, the
election must have been made by the
due date of your 2022 return (not count-
ing extensions).
The following facts and circumstan-
ces should be considered in determining
if your activity is a business.
Typical holding periods for securi-
ties bought and sold.
•
The frequency and dollar amounts
of your trades during the year.
•
The extent to which you pursue the
activity to produce income for a liveli-
hood.
•
The amount of time you devote to
the activity.
•
Reporting a short sale. Report any
short sale on Form 8949 in the year it
closes.
You are considered an investor, and
not a trader, if your activity doesn't meet
the above definition of a business. It
doesn't matter whether you call yourself
a trader or a “day trader.”
If a short sale closed in 2023 but you
didn't get a 2023 Form 1099-B (or sub-
stitute statement) for it because you en-
tered into it before 2011, report it on
Form 8949 in Part I with box C checked
or Part II with box F checked (whichev-
er applies). In column (a), enter (for ex-
ample) “100 sh. XYZ Co.—2010 short
sale closed.” Fill in the other columns
according to their instructions. Report
the short sale the same way if you re-
ceived a 2023 Form 1099-B (or substi-
Starting with the year the election be-
comes effective, a trader reports all
gains and losses from securities held in
connection with the trading business, in-
cluding securities held at the end of the
year, in Part II of Form 4797. If you pre-
viously made the election, see the In-
structions for Form 4797. For details on
making the mark-to-market election for
2023, see Pub. 550 or Rev. Proc. 99-17,
which starts on the bottom of page 52 of
Like an investor, a trader must gener-
ally report each sale of securities (taking
into account commissions and any other
costs of acquiring or disposing of the se-
curities) on Form 8949 unless one of the
exceptions described in the Instructions
for Form 8949 applies. However, if a
trader previously made the mark-to-mar-
ket election (explained below), each
transaction is reported in Part II of Form
D-6
tute statement) that doesn't show pro-
ceeds (sales price).
If there is an amount in box 1b of
Form 2439, include that amount on
line 11 of the Unrecaptured Section
1250 Gain Worksheet if you complete
line 19 of Schedule D.
gain or loss is recognized on the ex-
change of your equity interest in the mu-
tual company for stock. The company
can advise you if the transaction is a
tax-free reorganization. Your holding
period for the new stock includes the pe-
riod you held an equity interest in the
mutual company. If you received cash in
exchange for your equity interest, you
must recognize any capital gain. If you
held the equity interest for more than 1
year, report the gain as a long-term capi-
tal gain in Part II of Form 8949. If you
held the equity interest for 1 year or less,
report the gain as a short-term capital
gain in Part I of Form 8949. Be sure the
appropriate box is checked at the top of
Form 8949.
Gain or Loss From Options
Report on Form 8949 gain or loss from
the closing or expiration of an option
that isn't a section 1256 contract but is a
capital asset in your hands. If an option
you purchased expired, enter the expira-
tion date in column (c) and enter “EX-
PIRED” in column (d). If an option that
was granted (written) expired, enter the
expiration date in column (b) and enter
“EXPIRED” in column (e). Fill in the
other columns according to their instruc-
tions. See Pub. 550 for details.
If there is an amount in box 1c of
Form 2439, see Exclusion of Gain on
later.
If there is an amount in box 1d of
Form 2439, include that amount on
line 4 of the 28% Rate Gain Worksheet
if you complete line 18 of Schedule D.
Include on Schedule 3 (Form 1040),
line 13a, the tax paid as shown in box 2
of Form 2439. Add to the basis of your
stock the excess of the amount included
in income over the amount of the credit
for the tax paid. See Pub. 550 for details.
If a call option you sold after 2013
was exercised, the option premium you
received will be reflected in the pro-
ceeds shown in box 1d of the Form
1099-B (or substitute statement) you re-
ceived. If you sold the call option before
2014, the option premium you received
may not be reflected on Form 1099-B. If
it isn't, enter the premium as a positive
number in column (g) of Form 8949.
Enter “E” in column (f).
If the demutualization transaction
doesn't qualify as a tax-free reorganiza-
tion, you must recognize a capital gain
or loss. If you held the equity interest for
more than 1 year, report the gain or loss
as a long-term capital gain or loss in Part
II of Form 8949. If you held the equity
interest for 1 year or less, report the gain
or loss as a short-term capital gain or
loss in Part I of Form 8949. Be sure the
appropriate box is checked at the top of
Form 8949. Your holding period for the
new stock begins on the day after you
received the stock.
Installment Sales
If you sold property (other than publicly
traded stocks or securities) at a gain and
you will receive a payment in a tax year
after the year of sale, you must generally
report the sale on the installment method
unless you elect not to. Use Form 6252
to report the sale on the installment
method. Also, use Form 6252 to report
any payment received in 2023 from a
sale made in an earlier year that you re-
ported on the installment method.
Example. For $10 in 2013, you sold
Joe an option to buy one share of XYZ
stock for $80. Joe later exercised the op-
tion. The Form 1099-B you get shows
the proceeds to be $80. Enter $80 in col-
umn (d) of Form 8949. Enter “E” in col-
umn (f) and $10 in column (g). Com-
plete the other columns according to the
instructions.
Small Business (Section
1244) Stock
To elect out of the installment meth-
od, report the full amount of the gain on
Form 8949 on a timely filed return (in-
cluding extensions) for the year of the
sale. If your original return was filed on
time, you can make the election on an
amended return filed no later than 6
months after the due date of your return
(excluding extensions). Enter “Filed pur-
suant to section 301.9100-2” at the top
of the amended return.
Report an ordinary loss from the sale,
exchange, or worthlessness of small
business (section 1244) stock on Form
4797. However, if the total loss is more
than the maximum amount that can be
treated as an ordinary loss for the year
($50,000 or, on a joint return, $100,000),
also report the transaction on Form 8949
as follows.
NAV Method for Money
Market Funds
If you have a capital gain or loss deter-
mined under the net asset value (NAV)
method with respect to shares in an NAV
money market fund, report the capital
gain or loss on Form 8949, Part I, with
box C checked. Enter the name of each
fund followed by “(NAV)” in column
(a). Enter the net gain or loss in column
(h). Leave all other columns blank. See
the Instructions for Form 8949.
1. In column (a), enter “Capital por-
tion of section 1244 stock loss.”
Demutualization of Life
Insurance Companies
2. Complete columns (b) and (c) as
you normally would.
Demutualization of a life insurance
company occurs when a mutual life in-
surance company changes to a stock
company. If you were a policyholder or
annuitant of the mutual company, you
may have received either stock in the
stock company or cash in exchange for
your equity interest in the mutual com-
pany.
3. In column (d), enter the entire
sales price of the stock sold.
Undistributed Capital Gains
4. In column (e), enter the entire ba-
sis of the stock sold.
Include on Schedule D, line 11, the
amount from box 1a of Form 2439. This
represents your share of the undistrib-
uted long-term capital gains of the regu-
lated investment company (including a
mutual fund) or real estate investment
trust.
5. Enter “S” in column (f). See the
instructions for Form 8949, columns (f),
(g), and (h).
6. In column (g), enter the loss you
claimed on Form 4797 for this transac-
tion. Enter it as a positive number.
If the demutualization transaction
qualifies as a tax-free reorganization, no
D-7
7. Complete column (h) according
to its instructions.
corporation with total gross assets of
$50 million or less (a) at all times after
August 9, 1993, and before the stock
was issued; and (b) immediately after
the stock was issued. Gross assets in-
clude those of any predecessor of the
corporation. All corporations that are
members of the same parent-subsidiary
controlled group are treated as one cor-
poration.
A business involving the produc-
tion of products for which percentage
depletion can be claimed.
A business of operating a hotel,
motel, restaurant, or similar business.
•
Report the transaction in Part I or
Part II of Form 8949 (depending on how
long you held the stock) with the appro-
priate box checked.
•
For more details about limits and ad-
ditional requirements that may apply,
see Pub. 550 or section 1202.
Example. You sold section 1244
stock for $1,000. Your basis was
$60,000. You had held the stock for 3
years. You can claim $50,000 of your
loss as an ordinary loss on Form 4797.
To claim the rest of the loss on Form
8949, check the appropriate box at the
top. Enter $1,000 on Form 8949, Part II,
column (d). Enter $60,000 in column
(e). Enter “S” in column (f) and $50,000
(the ordinary loss claimed on Form
4797) in column (g). In column (h), en-
Acquisition date of stock acquired af-
ter February 17, 2009. When you are
determining whether your exclusion is
limited to 50%, 75%, or 100% of the
gain from QSB stock, your acquisition
date is considered to be the first day you
held the stock (determined after apply-
ing the holding period rules in section
1223).
4. You must have acquired the stock
at its original issue (either directly or
through an underwriter), either in ex-
change for money or other property
(other than stock) or as pay for services
(other than as an underwriter) to the cor-
poration. In certain cases, you may meet
this test if you acquired the stock from
another person who met the test (such as
by gift or inheritance) or through a con-
version or exchange of QSB stock you
held.
Empowerment Zone Business
Stock
You can generally exclude up to 60% of
your gain from the sale or exchange of
QSB stock held for more than 5 years if
you meet the following additional re-
quirements.
ter ($9,000) ($1,000
−
$60,000
+
$50,000). Put it in parentheses to show it
is a negative amount.
Exclusion of Gain on
Qualified Small Business
(QSB) Stock
5. During substantially all the time
you held the stock:
a. The corporation was a C corpora-
tion;
1. The stock you sold or exchanged
was stock in a corporation that qualified
as an empowerment zone business dur-
ing substantially all of the time you held
the stock.
Section 1202 allows you to exclude a
portion of the eligible gain on the sale or
exchange of QSB stock. The section
1202 exclusion applies only to QSB
stock held for more than 5 years. If you
acquired the QSB stock on or before
February 17, 2009, you can exclude up
to 50% of the qualified gain. However,
you can exclude up to 60% of the quali-
fied gain on certain empowerment zone
business stock for gain attributable to
periods on or before December 31,
2018. The 60% exclusion doesn’t apply
to gain attributable to periods after De-
cember 31, 2018. See Empowerment
Zone Business Stock, later.
b. At least 80% of the value of the
corporation's assets were used in the ac-
tive conduct of one or more qualified
businesses (defined next); and
c. The corporation wasn't a foreign
corporation, DISC, former DISC, regu-
lated investment company, real estate in-
vestment trust, REMIC, FASIT, or coop-
erative, or a corporation that has made
(or that has a subsidiary that has made) a
section 936 election.
2. You acquired the stock after De-
cember 21, 2000, and before February
18, 2009.
3. The gain from the sale or ex-
change of the stock is attributable to pe-
riods on or before December 31, 2018.
Requirement 1 will still be met if the
corporation ceased to qualify after the
5-year period that began on the date you
acquired the stock. However, the gain
that qualifies for the 60% exclusion can't
be more than the gain you would have
had if you had sold the stock on the date
the corporation ceased to qualify.
SSBIC. A specialized small
business investment company
(SSBIC) is treated as having
TIP
met test 5b.
If you acquired the QSB stock after
February 17, 2009, and before Septem-
ber 28, 2010, you can exclude up to 75%
of the qualified gain.
Definition of qualified business. A
qualified business is any business that
isn't one of the following.
A business involving services per-
•
Stock acquired after February 17,
2009. You can exclude up to 75% of
your gain if you acquired the stock after
February 17, 2009, and before Septem-
ber 28, 2010.
formed in the field of health, law, engi-
neering, architecture, accounting, actua-
rial science, performing arts, consulting,
athletics, financial services, or brokerage
services.
If you acquired the QSB stock after
September 27, 2010, you can exclude up
to 100% of the qualified gain.
To be QSB stock, the stock must
meet all of the following tests.
You can exclude up to 100% of your
gain if you acquired the stock after Sep-
tember 27, 2010.
A business whose principal asset is
the reputation or skill of one or more
employees.
•
1. It must be stock in a C corpora-
tion (that is, not S corporation stock).
More information. For more informa-
tion about empowerment zone business-
es, see section 1397C.
A banking, insurance, financing,
leasing, investing, or similar business.
•
2. It must have been originally is-
sued after August 10, 1993.
A farming business (including the
raising or harvesting of trees).
•
3. As of the date the stock was is-
sued, the corporation was a domestic C
D-8
gain (box 1a) on Schedule D, line 11. In
column (a) of Form 8949, Part II, enter
the name of the corporation whose stock
was sold. In column (f), enter “Q,” and
in column (g), enter the amount of the
excluded gain as a negative number. See
the instructions for Form 8949, columns
(f), (g), and (h). If you are completing
line 18 of Schedule D, enter as a posi-
tive number the amount of your allowa-
ble exclusion on line 2 of the 28% Rate
Gain Worksheet; if you excluded 60% of
you can elect to postpone gain if you
buy other QSB stock during the 60-day
period that began on the date of the sale.
A pass-through entity can also make the
election to postpone gain. The benefit of
the postponed gain applies to your share
of the entity's postponed gain if you held
an interest in the entity for the entire pe-
riod the entity held the QSB stock. If a
pass-through entity sold QSB stock held
for more than 6 months and you held an
interest in the entity for the entire period
the entity held the stock, you can also
elect to postpone gain if you, rather than
the pass-through entity, buy the replace-
ment QSB stock within the 60-day peri-
od. If you were a partner in a partnership
that sold or bought QSB stock, see
box 11 of the Schedule K-1 (Form 1065)
sent to you by the partnership; also, see
Regulations section 1.1045-1.
Pass-Through Entities
If you held an interest in a pass-through
entity (a partnership, S corporation,
common trust fund, or mutual fund or
other regulated investment company)
that sold QSB stock, to qualify for the
exclusion you must have held the inter-
est on the date the pass-through entity
acquired the QSB stock and at all times
thereafter until the stock was sold.
How To Report
2
the gain, enter /3 of the exclusion; if
1
Report the sale or exchange of the QSB
stock on Form 8949, Part II, with the ap-
propriate box checked, as you would if
you weren't taking the exclusion. Then
enter “Q” in column (f) and enter the
amount of the excluded gain as a nega-
tive number in column (g). Put it in pa-
rentheses to show it is negative. See the
instructions for Form 8949, columns (f),
(g), and (h). Complete all remaining col-
umns. If you are completing line 18 of
Schedule D, enter as a positive number
the amount of your allowable exclusion
on line 2 of the 28% Rate Gain Work-
sheet; if you excluded 60% of the gain,
you excluded 75% of the gain, enter /3
of the exclusion; if you excluded 100%
of the gain, don't enter an amount.
Gain from an installment sale of QSB
stock. If all payments aren't received in
the year of sale, a sale of QSB stock that
isn't traded on an established securities
market is generally treated as an install-
ment sale and is reported on Form 6252.
Report the long-term gain from Form
6252 on Schedule D, line 11. Figure the
allowable section 1202 exclusion for the
year by multiplying the total amount of
the exclusion by a fraction, the numera-
tor of which is the amount of eligible
gain to be recognized for the tax year
and the denominator of which is the to-
tal amount of eligible gain. In column
(a) of Form 8949, Part II, enter the name
of the corporation whose stock was sold.
In column (f), enter “Q,” and in column
(g), enter the amount of the allowable
exclusion for the year as a negative
number. See the instructions for Form
8949, columns (f), (g), and (h). If you
are completing line 18 of Schedule D,
enter as a positive number the amount of
your allowable exclusion for the year on
line 2 of the 28% Rate Gain Worksheet;
if you excluded 60% of the gain, enter
2/3 of the allowable exclusion for the
year; if you excluded 75% of the gain,
You must recognize gain to the extent
the sale proceeds are more than the cost
of the replacement stock. Reduce the ba-
sis of the replacement stock by any post-
poned gain.
You must make the election no later
than the due date (including extensions)
for filing your tax return for the tax year
in which the QSB stock was sold. If
your original return was filed on time,
you can make the election on an amen-
ded return filed no later than 6 months
after the due date of your return (exclud-
ing extensions). Enter “Filed pursuant to
section 301.9100-2” at the top of the
amended return.
2
enter /3 of the exclusion; if you exclu-
1
ded 75% of the gain, enter /3 of the ex-
clusion; if you excluded 100% of the
gain, don't enter an amount.
Gain from Form 1099-DIV. If you re-
ceived a Form 1099-DIV with a gain in
box 2c, part or all of that gain (which is
also included in box 2a) may be eligible
for the section 1202 exclusion. Report
the total gain (box 2a) on Schedule D,
line 13. In column (a) of Form 8949,
Part II, enter the name of the corporation
whose stock was sold. In column (f), en-
ter “Q,” and in column (g), enter the
amount of the excluded gain as a nega-
tive number. See the instructions for
Form 8949, columns (f), (g), and (h). If
you are completing line 18 of Sched-
ule D, enter as a positive number the
amount of your allowable exclusion on
line 2 of the 28% Rate Gain Worksheet;
if you excluded 60% of the gain, enter
2/3 of the exclusion; if you excluded
To make the election, report the sale
in Part I or Part II (depending on how
long you, or the pass-through entity, if
applicable, owned the stock) of Form
8949 as you would if you weren't mak-
ing the election. Then enter “R” in col-
umn (f). Enter the amount of the post-
poned gain as a negative number in col-
umn (g). Put it in parentheses to show it
is negative. See the instructions for
Form 8949, columns (f), (g), and (h).
Complete all remaining columns.
1
enter /3 of the allowable exclusion for
the year; if you excluded 100% of the
gain, don't enter an amount.
Alternative minimum tax. If you qual-
ify for the 50%, 60%, or 75% exclusion,
enter 7% of your allowable exclusion for
the year on line 13 of Form 6251. If you
qualify for the 100% exclusion, leave
line 13 of Form 6251 blank.
1
75% of the gain, enter /3 of the exclu-
Exclusion of Gain From DC
Zone Assets
If you sold or exchanged a District of
Columbia Enterprise Zone (DC Zone)
asset that you acquired after 1997 and
before 2012 and held for more than 5
years, you may be able to exclude the
amount of qualified capital gain that you
sion; if you excluded 100% of the gain,
don't enter an amount.
Gain from Form 2439. If you received
a Form 2439 with a gain in box 1c, part
or all of that gain (which is also included
in box 1a) may be eligible for the sec-
tion 1202 exclusion. Report the total
Rollover of Gain From QSB
Stock
If you sold QSB stock (defined earlier)
that you held for more than 6 months,
D-9
would otherwise include in income. The
exclusion applies to an interest in, or
property of, certain businesses operating
in the District of Columbia.
during the 180-day period beginning on
the date the gain was realized. You may
also be able to permanently exclude the
gain from the sale or exchange of any
investment in a QOF if the investment is
held for at least 10 years.
Qualified community asset. A quali-
fied community asset is any of the fol-
lowing.
Qualified community stock.
Qualified community partnership
•
DC Zone asset. A DC Zone asset is any
of the following.
•
interest.
DC Zone business stock.
DC Zone partnership interest.
DC Zone business property.
Qualified community business
property.
•
•
If you elect to defer tax on an
eligible gain by investing in a
QOF, you will need to complete
•
!
CAUTION
•
Qualified capital gain. Qualified capi-
tal gain is any gain recognized on the
sale or exchange of a qualified commun-
ity asset but doesn't include any of the
following.
Gain attributable to periods after
December 31, 2014.
Gain treated as ordinary income
under section 1245.
a Form 8997 for each year you hold the
investment and for the year you dispose
of the investment. If you have held that
investment for more than 5 years, see
the instructions for Form 8997 for addi-
tional information regarding the basis of
that investment.
Qualified capital gain. Qualified capi-
tal gain is any gain recognized on the
sale or exchange of a DC Zone asset that
is a capital asset or property used in a
trade or business. It doesn't include any
of the following gains.
Gain attributable to periods after
December 31, 2016.
Gain treated as ordinary income
under section 1245.
Section 1250 gain figured as if
section 1250 applied to all depreciation
rather than the additional depreciation.
Gain attributable to real property,
or an intangible asset, that isn't an inte-
gral part of a DC Zone business.
•
•
•
QOF. A QOF is any investment vehicle
that is organized as either a corporation
or partnership for the purpose of invest-
ing in eligible property that is located in
a qualified opportunity zone.
Section 1250 gain figured as if
section 1250 applied to all depreciation
rather than the additional depreciation.
•
•
•
Gain attributable to real property,
•
or an intangible asset, that isn't an inte-
gral part of a renewal community busi-
ness.
How to report. Report the eligible gain
as you normally would on Schedule D.
See the Form 8949 instructions for how
to report the deferral. See the Form 8997
instructions for additional reporting in-
structions.
•
Gain from a related-party transac-
•
Gain from a related-party transac-
tion. See Sales and Exchanges Between
Related Persons in chapter 2 of Pub.
544.
•
tion. See Sales and Exchanges Between
Related Persons in chapter 2 of Pub.
544.
How to report. Report the sale or ex-
change of qualified community stock or
a qualified community partnership inter-
est on Form 8949, Part II, with the ap-
propriate box checked, as you would if
you weren't taking the exclusion. Then
enter “X” in column (f) and enter the
amount of the exclusion as a negative
number in column (g). Put it in paren-
theses to show it is negative. See the in-
structions for Form 8949, columns (f),
(g), and (h). Complete all remaining col-
umns.
Rollover of Gain From Stock
Sold to ESOPs or Certain
Cooperatives
You can postpone all or part of any gain
from the sale of qualified securities, held
for at least 3 years, to an employee stock
ownership plan (ESOP) or eligible
worker-owned cooperative, if you buy
qualified replacement property. See Pub.
550. Also, see the instructions for Form
8949, columns (f), (g), and (h).
How to report. Report the sale or ex-
change of DC Zone business stock or a
DC Zone partnership interest on Form
8949, Part II, as you would if you
weren't taking the exclusion. Then enter
“X” in column (f). Enter the amount of
the exclusion as a negative number in
column (g). Put it in parentheses to show
it is negative. See the instructions for
Form 8949, columns (f), (g), and (h).
Complete all remaining columns.
Report the sale or exchange of DC
Zone business property on Form 4797.
See the Form 4797 instructions for de-
tails.
Report the sale or exchange of quali-
fied community business property on
Form 4797. See the Form 4797 instruc-
tions for details.
Specific
Instructions
Exclusion of Gain From
Qualified Community Assets
Deferral of Gain Invested in
a QOF
Rounding Off to Whole
Dollars
If you sold or exchanged a qualified
community asset that you acquired after
2001 and before 2010 and held for more
than 5 years, you may be able to exclude
the qualified capital gain that you would
otherwise include in income. The exclu-
sion applies to an interest in, or property
of, certain renewal community business-
es.
If you have an eligible gain, you can in-
vest that gain in a QOF and elect to de-
fer part or all of the gain that you would
otherwise include in income until you
sell or exchange the investment in the
QOF or December 31, 2026, whichever
is earlier. If you make the election, you
only include gain to the extent, if any,
the amount of realized gain is more than
the aggregate amount invested in a QOF
You can round off cents to whole dollars
on your Schedule D. If you do round to
whole dollars, you must round all
amounts. To round, drop amounts under
50 cents and increase amounts from 50
to 99 cents to the next dollar. For exam-
ple, $1.39 becomes $1 and $2.50 be-
comes $3.
If you have to add two or more
amounts to figure the amount to enter on
D-10
Capital Loss Carryover Worksheet—Lines 6 and 14
Keep for Your Records
Use this worksheet to figure your capital loss carryovers from 2022 to 2023 if your 2022 Schedule D, line 21, is a loss and (a) that loss is a smaller loss
than the loss on your 2022 Schedule D, line 16; or (b) if the amount on your 2022 Form 1040 or 1040-SR, line 15, (or your 2022 Form 1040-NR,
line 15, if applicable) would be less than zero if you could enter a negative amount on that line. Otherwise, you don't have any carryovers.
If you and your spouse once filed a joint return and are filing separate returns for 2023, any capital loss carryover from the joint return can be deducted
only on the return of the spouse who actually had the loss.
If you excluded canceled debt from income in 2023, see Pub. 4681.
1. Enter the amount from your 2022 Form 1040 or 1040-SR, line 15; or your 2022 Form 1040-NR, line 15. If
the amount would have been a loss if you could enter a negative number on that line, enclose the amount in
parentheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2.
3.
2. Enter the loss from your 2022 Schedule D, line 21, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Combine lines 1 and 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter the smaller of line 2 or line 3 . . . . . . . . . . . . . . . . . . . . . .
4.
If line 7 of your 2022 Schedule D is a loss, go to line 5; otherwise, enter -0- on line 5 and go to line 9.
5. Enter the loss from your 2022 Schedule D, line 7, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Enter any gain from your 2022 Schedule D, line 15. If a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Add lines 4 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8.
8. Short-term capital loss carryover for 2023. Subtract line 7 from line 5. If zero or less, enter -0-. If more
than zero, also enter this amount on Schedule D, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If line 15 of your 2022 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13.
9. Enter the loss from your 2022 Schedule D, line 15, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter any gain from your 2022 Schedule D, line 7. If a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
11.
11. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . .
12. Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.
13.
13. Long-term capital loss carryover for 2023. Subtract line 12 from line 9. If zero or less, enter -0-. If more
than zero, also enter this amount on Schedule D, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a line, include cents when adding the
amounts and round off only the total.
The Ordinary box in box 2 isn’t
checked;
The QOF box in box 3 isn’t
from the proceeds (sales price) in col-
umn (d). Enter the gain or loss in col-
umn (h). Enter negative amounts in pa-
rentheses.
•
•
checked;
Disposal of QOF investment. If you
disposed of any investment in a QOF
during the tax year, check the box on
page 1 of Schedule D and see the In-
structions for Form 8949 for additional
reporting requirements. You must also
complete Part III of Form 8997. See the
instructions for Form 8997 for details.
You aren’t electing to defer income
•
Example 1—basis reported to the
IRS. You received a Form 1099-B re-
porting the sale of stock you held for 3
years. It shows proceeds (in box 1d) of
$6,000 and cost or other basis (in
box 1e) of $2,000. Box 3 is checked,
meaning that basis was reported to the
IRS. You don't need to make any adjust-
ments to the amounts reported on Form
1099-B or enter any codes. This was
your only 2023 transaction. Instead of
reporting this transaction on Form 8949,
you can enter $6,000 on Schedule D,
line 8a, column (d); $2,000 in column
(e); and $4,000 ($6,000 − $2,000) in col-
umn (h).
due to an investment in a QOF and
aren’t terminating deferral from an in-
vestment in a QOF; and
You don't need to make any adjust-
•
ments to the basis or type of gain or loss
reported on Form 1099-B (or substitute
statement), or to your gain or loss.
See How To Complete Form 8949, Col-
umns (f) and (g) in the Form 8949 in-
structions for details about possible ad-
justments to your gain or loss.
Lines 1a and 8a—
Transactions Not Reported
on Form 8949
You can report on line 1a (for short-term
transactions) or line 8a (for long-term
transactions) the aggregate totals from
any transactions (except sales of collec-
tibles) for which:
If you choose to report these transac-
tions on lines 1a and 8a, don't report
them on Form 8949. You don't need to
attach a statement to explain the entries
on lines 1a and 8a and, if you e-file your
return, you don't need to file Form 8453.
You received a Form 1099-B (or
•
If you had a second transaction that
was the same except that the proceeds
were $5,000 and the basis was $3,000,
combine the two transactions. Enter
substitute statement) that shows basis
was reported to the IRS and doesn't
show any adjustments in box 1f or 1g;
Figure gain or loss on each line. Sub-
tract the cost or other basis in column (e)
D-11
$11,000 ($6,000 + $5,000) on Sched-
ule D, line 8a, column (d); $5,000
($2,000 + $3,000) in column (e); and
$6,000 ($11,000 − $5,000) in column
(h).
ness (QSB) Stock, earlier).
Lines 1b, 2, 3, 8b, 9, and 10,
Column (h)—Transactions
Reported on Form 8949
Figure gain or loss on each line. First,
subtract the cost or other basis in col-
umn (e) from the proceeds (sales price)
in column (d). Then combine the result
with any adjustments in column (g). En-
ter the gain or loss in column (h). Enter
negative amounts in parentheses.
You reported in Part II of Form
•
8949 a collectibles gain or (loss). A col-
lectibles gain or (loss) is any long-term
gain or deductible long-term loss from
the sale or exchange of a collectible that
is a capital asset.
Example 2—basis not reported to
the IRS. You received a Form 1099-B
showing proceeds (in box 1d) of $6,000
and cost or other basis (in box 1e) of
$2,000. Box 3 isn't checked, meaning
that basis wasn't reported to the IRS.
Don't report this transaction on line 1a
or line 8a. Instead, report the transaction
on Form 8949. Complete all necessary
pages of Form 8949 before completing
line 1b, 2, 3, 8b, 9, or 10 of Schedule D.
Collectibles include works of art,
rugs, antiques, metals (such as gold, sil-
ver, and platinum bullion), gems,
stamps, coins, alcoholic beverages, and
certain other tangible property.
Example 1—gain. Column (d) is
$6,000 and column (e) is $2,000. Enter
$4,000 in column (h).
Include on the worksheet any gain
(but not loss) from the sale or exchange
of an interest in a partnership, S corpora-
tion, or trust held for more than 1 year
and attributable to unrealized apprecia-
tion of collectibles. For details, see Reg-
ulations section 1.1(h)-1. Also, attach
the statement required under Regula-
tions section 1.1(h)-1(e).
Example 2—loss. Column (d) is
$6,000 and column (e) is $8,000. Enter
($2,000) in column (h).
Example 3—adjustment. You re-
ceived a Form 1099-B showing pro-
ceeds (in box 1d) of $6,000 and cost or
other basis (in box 1e) of $2,000. Box 3
is checked, meaning that basis was re-
ported to the IRS. However, the basis
shown in box 1e is incorrect. Don't re-
port this transaction on line 1a or
line 8a. Instead, report the transaction on
Form 8949. See the instructions for
Form 8949, columns (f), (g), and (h).
Complete all necessary pages of Form
8949 before completing line 1b, 2, 3, 8b,
9, or 10 of Schedule D.
Example
3—adjustment. Column
(d) is $6,000, column (e) is $2,000, and
column (g) is ($1,000). Enter $3,000
($6,000 − $2,000 − $1,000) in column
(h).
Line 19
Line 13
If you checked “Yes” on line 17, com-
plete the Unrecaptured Section 1250
Gain Worksheet in these instructions if
any of the following apply for 2023.
Line 18
If you checked “Yes” on line 17, com-
these instructions if either of the follow-
ing applies for 2023.
You sold or otherwise disposed of
•
section 1250 property (generally, real
property that you depreciated) held more
than 1 year.
You reported in Part II of Form
8949 a section 1202 exclusion from the
•
You received installment payments
for section 1250 property held more than
•
eligible gain on QSB stock (see Exclu-
28% Rate Gain Worksheet—Line 18
Keep for Your Records
1. Enter the total of all collectibles gain or (loss) from items you reported on Form 8949, Part II . . . . . . . . . . . . . . . . . . . . . . .
1.
2. Enter as a positive number the total of:
Any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with
•
code “Q” in column (f), that is 50% of the gain;
2/3 of any section 1202 exclusion you reported in column (g) of Form 8949, Part II,
•
. . . . . . . . . . . . . . . . . . . . . . 2.
with code “Q” in column (f), that is 60% of the gain; and
1/3 of any section 1202 exclusion you reported in column (g) of Form 8949, Part II,
•
with code “Q” in column (f), that is 75% of the gain.
Don’t make an entry for any section 1202 exclusion that is 100% of the gain.
3. Enter the total of all collectibles gain or (loss) from Form 4684, line 4 (but only if Form 4684, line 15, is more than zero); Form
6252; Form 6781, Part II; and Form 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the total of any collectibles gain reported to you on:
Form 1099-DIV, box 2d;
Form 2439, box 1d; and
Schedule K-1 from a partnership, S corporation, estate, or trust.
•
. . . . . . . . . . . . . . . . . . . . 4.
•
•
5. Enter your long-term capital loss carryovers from Schedule D, line 14; and Schedule K-1 (Form 1041),
(
(
)
)
5.
box 11, code D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. If Schedule D, line 7, is a (loss), enter that (loss) here. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Combine lines 1 through 6. If zero or less, enter -0-. If more than zero, also enter this amount on
Schedule D, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
D-12
1 year for which you are reporting gain
on the installment method.
installment sale of trade or business
property held more than 1 year.
has been used in full. Figure the amount
of gain treated as unrecaptured section
1250 gain for installment payments re-
ceived in 2023 as the smaller of (a) the
amount from line 26 or line 37 of your
2023 Form 6252, whichever applies; or
(b) the amount of unrecaptured section
1250 gain remaining to be reported. This
amount is generally the total unrecap-
tured section 1250 gain for the sale re-
duced by all gain reported in prior years
(excluding section 1250 ordinary in-
come recapture). However, if you chose
not to treat all of the gain from payments
received after May 6, 1997, and before
August 24, 1999, as unrecaptured sec-
tion 1250 gain, use only the amount you
chose to treat as unrecaptured section
1250 gain for those payments to reduce
the total unrecaptured section 1250 gain
remaining to be reported for the sale. In-
clude this amount on line 4.
You received a Schedule K-1 from
•
Step 1. Figure the smaller of (a) the
depreciation allowed or allowable, or (b)
the total gain for the sale. This is the
smaller of line 22 or line 24 of your
2023 Form 4797 (or the comparable
lines of Form 4797 for the year of sale)
for the property.
an estate or trust, a partnership, or an S
corporation that shows “unrecaptured
section 1250 gain.”
You received a Form 1099-DIV or
•
Form 2439 from a real estate investment
trust or regulated investment company
(including a mutual fund) that reports
“unrecaptured section 1250 gain.”
Step 2. Reduce the amount figured in
Step 1 by any section 1250 ordinary in-
come recapture for the sale. This is the
amount from line 26g of your 2023
Form 4797 (or the comparable line of
Form 4797 for the year of sale) for the
property. The result is your total unrec-
aptured section 1250 gain that must be
allocated to the installment payments re-
ceived from the sale.
You reported a long-term capital
•
gain from the sale or exchange of an in-
terest in a partnership that owned section
1250 property.
Instructions for the Unrecaptured
Section 1250 Gain Worksheet
Lines 1 through 3. If you had more
than one property described on line 1,
complete lines 1 through 3 for each
property on a separate worksheet. Enter
the total of the line 3 amounts for all
properties on line 3 and go to line 4.
Step 3. Generally, the entire amount
of gain from the sale of trade or business
property included in each installment
payment is treated as unrecaptured sec-
tion 1250 gain until the total unrecap-
tured section 1250 gain figured in Step 2
Line 4. To figure the amount to enter on
line 4, follow the steps below for each
D-13
Unrecaptured Section 1250 Gain Worksheet—Line 19
Keep for Your Records
If you aren't reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to line 10.
1. If you have a section 1250 property in Part III of Form 4797 for which you made an entry in Part I of Form 4797 (but
not on Form 6252), enter the smaller of line 22 or line 24 of Form 4797 for that property. If you didn't have any such
property, go to line 4. If you had more than one such property, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on line 1 . . . . . . . . . . . . .
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252 from installment sales
2.
3.
of trade or business property held more than 1 year. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter the total of any amounts reported to you on a Schedule K-1 from a partnership or an S corporation as
“unrecaptured section 1250 gain” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Enter the smaller of line 6 or the gain from Form 4797, line 7 . . . . . . . . . . . . . . . . . . . . .
8. Enter the amount, if any, from Form 4797, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8.
9. Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter the amount of any gain from the sale or exchange of an interest in a partnership attributable to unrecaptured
section 1250 gain. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the total of any amounts reported to you as “unrecaptured section 1250 gain” on a Schedule K-1, Form
1099-DIV, or Form 2439 from an estate, a trust, a real estate investment trust, or a mutual fund (or other regulated
investment company) or in connection with a Form 1099-R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total of any unrecaptured section 1250 gain from sales (including installment sales) or other dispositions of
section 1250 property held more than 1 year for which you didn't make an entry in Part I of Form 4797 for the year of
sale. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Add lines 9 through 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.
14. If you had any section 1202 gain or collectibles gain or (loss), enter the total of lines 1
through 4 of the 28% Rate Gain Worksheet. Otherwise, enter -0- . . . . . . . . . . . . . . . . . 14.
15. Enter the (loss), if any, from Schedule D, line 7. If Schedule D, line 7, is zero or a gain,
(
(
)
)
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Enter your long-term capital loss carryovers from Schedule D, line 14; and Schedule K-1
(Form 1041), box 11, code D* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Combine lines 14 through 16. If the result is a (loss), enter it as a positive amount. If the result is zero or a gain,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Unrecaptured section 1250 gain. Subtract line 17 from line 13. If zero or less, enter -0-. If more than zero, enter the
result here and on Schedule D, line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
* If you are filing Form 2555 (relating to foreign earned income), see the footnote in the Foreign Earned Income Tax
Worksheet in the Instructions for Form 1040 before completing this line.
Installment sales. To figure the
amount to include on line 12, follow the
steps below for each installment sale of
property held more than 1 year for
which you didn't make an entry in Part I
of your Form 4797 for the year of sale.
is treated as unrecaptured section 1250
Line 10. Include on line 10 your share
of the partnership's unrecaptured section
1250 gain that would result if the part-
nership had transferred all of its section
1250 property in a fully taxable transac-
tion immediately before you sold or ex-
changed your interest in that partnership.
If you recognized less than all of the re-
alized gain, the partnership will be trea-
ted as having transferred only a propor-
tionate amount of each section 1250
property. For details, see Regulations
section 1.1(h)-1. Also, attach the state-
ment required under Regulations
gain until the total unrecaptured section
1250 gain figured in Step 2 has been
used in full. Figure the amount of gain
treated as unrecaptured section 1250
gain for installment payments received
in 2023 as the smaller of (a) the amount
from line 26 or line 37 of your 2023
Form 6252, whichever applies; or (b)
the amount of unrecaptured section 1250
gain remaining to be reported. This
amount is generally the total unrecap-
tured section 1250 gain for the sale re-
duced by all gain reported in prior years
(excluding section 1250 ordinary in-
come recapture). However, if you chose
not to treat all of the gain from payments
received after May 6, 1997, and before
August 24, 1999, as unrecaptured sec-
tion 1250 gain, use only the amount you
chose to treat as unrecaptured section
1250 gain for those payments to reduce
the total unrecaptured section 1250 gain
remaining to be reported for the sale. In-
clude this amount on line 12.
Step 1. Figure the smaller of (a)
•
the depreciation allowed or allowable, or
(b) the total gain for the sale. This is the
smaller of line 22 or line 24 of your
2023 Form 4797 (or the comparable
lines of Form 4797 for the year of sale)
for the property.
Step 2. Reduce the amount figured
•
in Step 1 by any section 1250 ordinary
income recapture for the sale. This is the
amount from line 26g of your 2023
Form 4797 (or the comparable line of
Form 4797 for the year of sale) for the
property. The result is your total unrec-
aptured section 1250 gain that must be
allocated to the installment payments re-
ceived from the sale.
section 1.1(h)-1(e).
Line 12. An example of an amount to
include on line 12 is unrecaptured sec-
tion 1250 gain from the sale of a vaca-
tion home you previously used as a rent-
al property but converted to personal use
prior to the sale. To figure the amount to
enter on line 12, follow the applicable
instructions below.
Step 3. Generally, the amount of
capital gain on each installment payment
•
D-14
Other sales or dispositions of section
1250 property. For each sale of proper-
ty held more than 1 year (for which you
didn't make an entry in Part I of Form
4797), figure the smaller of (a) the de-
preciation allowed or allowable, or (b)
the total gain for the sale. This is the
smaller of line 22 or line 24 of Form
4797 for the property. Next, reduce that
amount by any section 1250 ordinary in-
come recapture for the sale. This is the
amount from line 26g of Form 4797 for
the property. The result is the total un-
recaptured section 1250 gain for the
sale. Include this amount on line 12.
zero if you could enter a negative
amount on that line.
To figure any capital loss carryover
to 2024, you will use the Capital Loss
Carryover Worksheet in the 2024 In-
structions for Schedule D. If you want to
figure your carryover to 2024 now, see
Pub. 550.
Line 21
You have a capital loss carryover from
2023 to 2024 if you have a loss on
line 16 and either:
That loss is more than the loss on
line 2; or
•
The amount on Form 1040 or
1040-SR, line 15, (or Form 1040-NR,
line 15, if applicable) would be less than
You will need a copy of your
•
2023 Form 1040 or 1040-SR
and Schedule D to figure your
TIP
capital loss carryover to 2024.
D-15
Schedule D Tax Worksheet
Keep for Your Records
Complete this worksheet only if line 18 or line 19 of Schedule D is more than zero and lines 15 and 16 of Schedule D are gains or
if you file Form 4952 and you have an amount on line 4g, even if you don’t need to file Schedule D. Otherwise, complete the
Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 16, (or in the instructions for Form
1040-NR, line 16) to figure your tax. Before completing this worksheet, complete Form 1040, 1040-SR, or 1040-NR through
line 15.
Exception: Don’t use the Qualified Dividends and Capital Gain Tax Worksheet or this worksheet to figure your tax if:
Line 15 or line 16 of Schedule D is zero or less and you have no qualified dividends on Form 1040, 1040-SR, or 1040-NR, line 3a;
•
•
or
Form 1040, 1040-SR, or 1040-NR, line 15, is zero or less.
Instead, see the instructions for Form 1040, line 16 (or Form 1040-NR, line 16).
1. Enter your taxable income from Form 1040, 1040-SR, or 1040-NR, line 15. (However, if you are filing Form
2555 (relating to foreign earned income), enter instead the amount from line 3 of the Foreign Earned Income
Tax Worksheet in the instructions for Form 1040, line 16.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter your qualified dividends from Form 1040,
1040-SR, or 1040-NR, line 3a . . . . . . . . . . . . . . . . . 2.
3. Enter the amount from Form 4952
(used to figure investment interest
expense deduction), line 4g . . . . . . . 3.
4. Enter the amount from Form 4952,
line 4e* . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Subtract line 4 from line 3. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Subtract line 5 from line 2. If zero or less, enter -0-** . . . . . . . . . . . . . . .
6.
9.
7. Enter the smaller of line 15 or line 16
of Schedule D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the smaller of line 3 or line 4 . . . . . . . . . . . .
8.
9. Subtract line 8 from line 7. If zero or less, enter -0-** . . . . . . . . . . . . . . .
10. Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
12.
11. Add lines 18 and 19 of Schedule D** . . . . . . . . . . . . . . . . . . . . . . . . . . .
11.
12. Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13. Subtract line 12 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Subtract line 13 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Enter:
13.
14.
• $44,625 if single or married filing
separately;
• $89,250 if married filing jointly or
qualifying surviving spouse; or
• $59,750 if head of household.
. . . . . . . . . . . . . . 15.
16. Enter the smaller of line 1 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Enter the smaller of line 14 or line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.
18. Subtract line 10 from line 1. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
19. Enter the smaller of line 1 or:
$182,100 if single or married filing
•
•
•
separately;
$364,200 if married filing jointly or
. . . . .19.
qualifying surviving spouse; or
$182,100 if head of household.
20. Enter the smaller of line 14 or line 19 . . . . . . . . . . .
20.
21. Enter the larger of line 18 or line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.
22.
22. Subtract line 17 from line 16. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . .
If lines 1 and 16 are the same, skip lines 23 through 43 and go to line 44. Otherwise, go to line 23.
23. Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . .
24. Enter the amount from line 22. (If line 22 is blank, enter -0-.) . . . . . . . . .
25. Subtract line 24 from line 23. If zero or less, enter -0- . . . . . . . . . . . . . . .
26. Enter:
23.
24.
25.
• $492,300 if single;
• $276,900 if married filing separately;
• $553,850 if married filing jointly or
qualifying surviving spouse; or
• $523,050 if head of household.
. . . . . . . . . . . . . . 26.
27. Enter the smaller of line 1 or line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28. Add lines 21 and 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29. Subtract line 28 from line 27. If zero or less, enter -0- . . . . . . . . . . . . . . .
30. Enter the smaller of line 25 or line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . .
27.
28.
29.
30.
D-16
Keep for Your Records
Schedule D Tax Worksheet—Continued
31. Multiply line 30 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 .
32. Add lines 24 and 30 . . . . . . . . 32.
If lines 1 and 32 are the same, skip lines 33 through 43 and go to line 44. Otherwise, go to line 33.
33. Subtract line 32 from line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33.
34. Multiply line 33 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34.
If Schedule D, line 19, is zero or blank, skip lines 35 through 40 and go to line 41. Otherwise, go to line 35.
35. Enter the smaller of line 9 above or Schedule D, line 19 . . . . . . . . . . .
35.
36. Add lines 10 and 21 . . . . . . . . . . . . . . . . . . . . . . .
37. Enter the amount from line 1 above . . . . . . . . . . .
36.
37.
38. Subtract line 37 from line 36. If zero or less, enter -0- . . . . . . . . . . . . .
38.
39. Subtract line 38 from line 35. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39.
40. Multiply line 39 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Schedule D, line 18, is zero or blank, skip lines 41 through 43 and go to line 44. Otherwise, go to line 41.
40.
41. Add lines 21, 22, 30, 33, and 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42. Subtract line 41 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41.
42.
43. Multiply line 42 by 28% (0.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43.
44. Figure the tax on the amount on line 21. If the amount on line 21 is less than $100,000, use the Tax Table to
figure the tax. If the amount on line 21 is $100,000 or more, use the Tax Computation Worksheet . . . . . . . . 44.
45. Add lines 31, 34, 40, 43, and 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45.
46. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to
figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet . . . . . . . . . 46.
47. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 45
or line 46. Also, include this amount on Form 1040, 1040-SR, or 1040-NR, line 16. (If you are filing Form
2555, don't enter this amount on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign
Earned Income Tax Worksheet in the Instructions for Form 1040.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.
* If applicable, enter instead the smaller amount you entered on the dotted line next to line 4e of Form 4952.
** If you are filing Form 2555, see the footnote in the Foreign Earned Income Tax Worksheet in the
instructions for Form 1040, line 16, before completing this line.
D-17