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טופס 1065 הוראות לתזמן D

הוראות לוח זמנים D (Form 1065), Capital Gains והפסדים

2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Schedule D  
(Form 1065)  
Capital Gains and Losses  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
Use Form 4797, Sales of Business  
Property, to report the following.  
U.S. Government publications,  
including the Congressional Record, that  
the partnership received from the  
Sales or exchanges of property used in  
Future Developments  
a trade or business.  
Sales or exchanges of depreciable or  
government, other than by purchase at the  
normal sales price, or that the partnership  
got from another taxpayer who had  
received it in a similar way, if the  
For the latest information about  
amortizable property.  
Sales or other dispositions of securities  
developments related to Schedule D  
(Form 1065) and its instructions, such as  
legislation enacted after they were  
published, go to IRS.gov/Form1065.  
or commodities held in connection with a  
partnership's basis is determined by  
trading business, if the partnership made a reference to the previous owner.  
mark-to-market election (see  
Certain commodities derivative financial  
Mark-to-market accounting method in the  
Instructions for Form 1065).  
instruments held by a dealer. See section  
1221(a)(6).  
General Instructions  
Involuntary conversions (other than  
Certain hedging transactions entered  
from casualties or thefts).  
into in the normal course of the trade or  
business. See section 1221(a)(7).  
Purpose of Schedule  
The disposition of noncapital assets  
Use Schedule D (Form 1065) to report the  
following.  
(other than inventory or property held  
primarily for sale to customers in the  
ordinary course of a trade or business).  
Supplies regularly used in the trade or  
business.  
The total capital gains and losses from  
transactions reported on Form 8949,  
Sales and Other Dispositions of Capital  
Assets.  
Election to defer a qualified section  
Short- or Long-Term Gain  
or Loss  
1231 gain invested in a qualified  
opportunity fund (QOF).  
Certain transactions the partnership  
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 period for long-term  
capital gains and losses is generally more  
than 1 year. However, an exception  
applies for certain sales of applicable  
partnership interests. See Transactions  
interests under Items for Special  
Use Form 6781, Gains and Losses  
From Section 1256 Contracts and  
Straddles, to report gains and losses from  
section 1256 contracts and straddles. If  
there are limited partners, see section  
1256(e)(4) for the limitation on losses from  
hedging transactions.  
doesn't have to report on Form 8949.  
Capital gains from installment sales  
from Form 6252, Installment Sale Income.  
Capital gains and losses from like-kind  
exchanges from Form 8824, Like-Kind  
Exchanges (and section 1043  
conflict-of-interest sales).  
Partnership's share of net capital gains  
Use Form 8997, Initial and Annual  
Statement of Qualified Opportunity Fund  
(QOF) Investments, if you held a qualified  
investment in a QOF at any time during the  
year. See the Form 8997 instructions.  
and losses, including specially allocated  
capital gains and losses, from  
partnerships, estates, and trusts.  
Treatment below.  
Capital gain distributions.  
For more information about holding  
periods, see the Instructions for Form  
8949.  
Note. For more information, see Pub.  
544, Sales and Other Dispositions of  
Assets, and the Instructions for Form  
8949.  
What Are Capital Assets?  
Each item of property the partnership held  
(whether or not connected with its trade or  
business) is a capital asset except the  
following.  
Items for Special  
Treatment  
Other Forms the  
Partnership May Have To  
File  
Transactions with respect to applicable  
Stock in trade or other property  
partnership interests. The long-term  
holding period for gains and losses with  
respect to applicable partnership interests  
is more than 3 years. If the holding period  
is 3 years or less, gains and losses with  
respect to applicable partnership interests  
are treated as short term. An applicable  
partnership interest is any interest in a  
partnership that, directly or indirectly, is  
transferred to (or is held by) the taxpayer  
in connection with the performance of  
substantial services by the taxpayer, or  
any other related person, in any applicable  
trade or business. See section 1061 and  
Pub. 541, Partnerships, for details.  
included in inventory or held mainly for  
sale to customers.  
Accounts or notes receivable acquired  
Use Form 8949 to report the sale or  
exchange of a capital asset (defined later)  
not reported on another form or schedule  
and to report the income deferral 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 of  
Schedule D. See Lines 1a and 8a, later,  
for more information about when to use  
Form 8949.  
in the ordinary course of the trade or  
business for services rendered or from the  
sale of stock in trade or other property  
held mainly for sale to customers.  
Depreciable or real property used in the  
trade or business, even if it is fully  
depreciated.  
Certain copyrights; literary, musical, or  
artistic compositions; letters or  
memoranda; or similar property. See  
section 1221(a)(3).  
Use Form 4684, Casualties and Thefts,  
to report involuntary conversions of  
property due to casualty or theft.  
Certain patents, inventions, models, or  
designs (whether or not patented); secret  
formulas or processes; or similar property.  
Jul 21, 2023  
Cat. No. 51610S  
   
Transactions by a securities dealer. See  
Any loss on the disposition of converted method may not be used to report sales of  
sections 475 and 1236, and Rev. Rul.  
97-39, 1997-39 I.R.B. 4.  
wetland or highly erodible cropland that is  
stock or securities traded on an  
first used for farming after March 1, 1986,  
is reported as a long-term capital loss on  
Form 8949/Schedule D, but any gain on  
such a disposition is reported as ordinary  
gain on Form 4797. See section 1257 for  
details.  
established securities market. Use Form  
6252 to report the sale on the installment  
method. Also use Form 6252 to report any  
payment received during the tax year from  
a sale made in an earlier year that was  
reported on the installment method.  
Bonds and other debt instruments. See  
Pub. 550, Investment Income and  
Expenses.  
Gain on disposition of market discount  
bonds. In general, a capital gain upon the  
disposition of a market discount bond is  
treated 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 information  
on market discount. See the Instructions  
for Form 8949 for detailed information  
about how to report the disposition of a  
market discount bond.  
Transfer of partnership assets and  
If the partnership wants to elect out of  
the installment method for installment gain  
that isn’t specially allocated among the  
partners, it must report the full amount of  
the gain on Form 8949 on a timely filed  
return (including extensions) for the year of  
the sale.  
liabilities to a newly formed corporation in  
exchange for all of its stock. See Rev. Rul.  
84-111, 1984-2 C.B. 88.  
Disposition of foreign investment in a  
U.S. real property interest. See section  
897.  
Any loss from a sale or exchange of  
property between the partnership and  
certain related persons isn’t allowed,  
except for distributions in a complete  
liquidation of a corporation. See sections  
267 and 707(b) for details.  
If the partnership wants to elect out of  
the installment method for installment gain  
that is specially allocated among the  
partners, it must do the following on a  
timely filed return (including extensions).  
1. For a short-term capital gain, report  
the full amount of the gain on Schedule K,  
line 8 or 11.  
For a long-term capital gain, report the  
full amount of the gain on Schedule K,  
line 9a or 11. Report the collectibles gain  
(28% rate gain) on Schedule K, line 9b.  
2. Enter each partner's share of the  
full amount of the gain on Schedule K-1,  
box 8 or 9a, or in box 11 using code I,  
whichever applies. Report the collectibles  
gain (28% rate gain) in box 9b of  
Schedule K-1.  
Contingent payment debt instruments.  
Any gain recognized on the sale,  
exchange, or retirement of a contingent  
payment debt instrument subject to the  
noncontingent bond method is generally  
treated as interest income rather than as  
capital gain. In certain situations, all or a  
portion of a loss recognized on the sale,  
exchange, or retirement of a contingent  
payment debt instrument subject to the  
noncontingent bond method may be  
treated as an ordinary loss rather than as  
a capital loss. See Regulations section  
1.1275-4(b) and Pub. 1212 for more  
information on contingent payment debt  
instruments subject to the noncontingent  
bond method. See the Instructions for  
Form 8949 for detailed information about  
how to report the disposition of a  
Any loss from securities that are capital  
assets that become worthless during the  
year is treated as a loss from the sale or  
exchange of a capital asset on the last day  
of the tax year.  
Nonrecognition of gain on sale of stock  
to an employee stock ownership plan  
(ESOP) or an eligible cooperative. See  
section 1042 and Temporary Regulations  
section 1.1042-1T for rules under which a  
taxpayer may elect not to recognize gain  
from the sale of certain stock to an ESOP  
or an eligible cooperative. Under section  
703(b), the partnership is the appropriate  
entity to make the 1042 election.  
If the partnership filed its original return  
on time without making the election, it may  
make the election on an amended return  
filed no later than 6 months after the due  
date of the return (excluding extensions).  
Enter “Filed pursuant to section  
contingent payment debt instrument.  
A nonbusiness bad debt must be  
Gain on certain short-term federal,  
treated as a short-term capital loss and  
can be deducted only in the year the debt  
becomes totally worthless. See Pub. 550  
for more details.  
state, and municipal obligations (other  
than tax-exempt obligations). If a  
short-term governmental obligation (other  
than a tax-exempt obligation) that is a  
capital asset is acquired at an acquisition  
discount, a portion of any gain realized is  
treated as ordinary income and any  
remaining balance as a short-term capital  
gain. See section 1271.  
Any loss from a wash sale of stock or  
301.9100-2” at the top of the amended  
return.  
securities (including contracts or options  
to acquire or sell stock or securities)  
cannot be deducted unless the  
A sale or other disposition of an interest  
in a partnership owning unrealized  
receivables or inventory items may result  
in ordinary gain or loss. See Pub. 541 for  
more details.  
partnership is a dealer in stock or  
securities and the loss was sustained in a  
transaction made in the ordinary course of  
the partnership's trade or business. A  
wash sale occurs if the partnership  
acquires (by purchase or exchange), or  
has a contract or option to acquire,  
substantially identical stock or securities  
Certain real estate subdivided for sale  
that may be considered a capital asset.  
See section 1237.  
Gain from certain constructive  
ownership transactions. Gain in excess of  
the net underlying long-term gain the  
partnership would have recognized if it  
had held a financial asset directly during  
the term of a derivative contract must be  
treated as ordinary income. See section  
1260 for details.  
Gain on the sale of depreciable  
property to a more-than-50%-owned  
entity, or to a trust in which the partnership  
is a beneficiary, is treated as ordinary gain. within 30 days before or after the date of  
See section 1239.  
Liquidating distributions from a  
the sale or exchange. See section 1091 for  
more information. Report a wash sale  
transaction on Form 8949, Part I or II (with  
corporation. See Pub. 550 for details.  
Gain from the sale of collectibles.  
Gain on the sale or exchange of stock in the appropriate box checked), depending  
Report any collectibles gain (28% rate  
gain) (loss) included on lines 8a through  
14 on line 9b of Schedule K (and each  
partner's share in box 9b of  
certain foreign corporations. See section  
on how long the partnership owned the  
stock or securities. Enter “W” in column (f)  
and enter as a positive number in column  
(g) the amount of the loss not allowed.  
Complete all remaining columns. See the  
Instructions for Form 8949.  
1248.  
Gain or loss on options to buy or sell,  
including closing transactions. See Pub.  
550 for details.  
Schedule K-1). A collectibles gain (28%  
rate gain) (loss) is any long-term gain or  
deductible long-term loss from the sale or  
exchange of a collectible that is a capital  
asset.  
Gain or loss from a short sale of  
property. See Pub. 550 for details.  
Gain from installment sales. If the  
Transfer of property to a political  
partnership sold property at a gain and it  
will receive a payment in a tax year after  
the year of sale, it must generally report  
the sale on the installment method unless  
it elects not to. However, the installment  
organization if the fair market value (FMV)  
of the property exceeds the partnership's  
adjusted basis in such property. See  
section 84.  
Collectibles include works of art, rugs,  
antiques, metals (such as gold, silver, and  
platinum bullion), gems, stamps, coins,  
Instructions for Schedule D (Form 1065) 2023  
-2-  
alcoholic beverages, and certain other  
tangible property.  
or disposing of securities) from a trading  
business on page 1 of Form 1065.  
it would be reported if the election was not  
made. Then enter “R” in column (f). Enter  
the amount of the postponed gain as a  
negative number (in parentheses) in  
column (g). See the Instructions for Form  
8949.  
A trader may also hold securities for  
investment. The rules for investors will  
generally apply to those securities.  
Allocate interest and other expenses  
between the partnership's trading  
business and its investment securities.  
Report any 28% gain or loss from a  
sale or exchange of a collectible on Form  
8949, Part II (with the appropriate box  
checked). See the Instructions for Form  
8949.  
Attach a statement to Form 1065 that  
(a) identifies the replacement qualified  
Also include gain (but not loss) from the  
sale or exchange of an interest in a  
partnership or trust held more than 1 year  
and attributable to unrealized appreciation  
of collectibles. For details, see  
Investment interest expense is reported on small business stock, (b) shows the  
line 13c of Schedule K and in box 13 of  
Schedule K-1 using code H.  
computation of the adjustment to the  
partnership's basis in the replacement  
stock for the amount of any postponed  
gain under section 1045, and (c) shows  
the dates on which the replacement stock  
was acquired by the partnership.  
Constructive sale treatment for certain  
appreciated positions. Generally, the  
partnership must recognize gain (but not  
loss) on the date it enters into a  
Regulations section 1.1(h)-1. Also, attach  
the statement required under Regulations  
section 1.1(h)-1(e).  
constructive sale of any appreciated  
position in stock, a partnership interest, or  
certain debt instruments as if the position  
were disposed of at FMV on that date.  
The partnership must also  
Special rules for traders in securities.  
Traders in securities are engaged in the  
business of buying and selling securities  
for their own account. To be engaged in  
business as a trader in securities:  
separately state the amount of the  
!
CAUTION  
gain rolled over on qualified stock  
under section 1045 on Form 1065,  
Schedule K, line 11. Each partner must  
determine if he or she qualifies for the  
rollover at the partner level or if he or she  
wants to opt out of the section 1045  
election. Also, the partnership must  
separately state on that line any gain that  
would qualify for the section 1045 rollover  
at the partner level instead of the  
partnership level (because a partner was  
entitled to purchase replacement stock)  
and any gain on qualified stock that could  
qualify for an exclusion under section  
1202.  
The partnership is treated as making a  
constructive sale of an appreciated  
The partnership must seek to profit from  
position when it (or a related person, in  
some cases) does one of the following.  
daily market movements in the prices of  
securities and not from dividends, interest,  
or capital appreciation;  
Enters into a short sale of the same or  
substantially identical property (that is, a  
“short sale against the box”).  
The partnership's trading activity must  
be substantial; and  
Enters into an offsetting notional  
The partnership must carry on the  
principal contract relating to the same or  
substantially identical property.  
activity with continuity and regularity.  
The following facts and circumstances  
should be considered in determining if a  
partnership's activity is a business.  
Enters into a futures or forward contract  
to deliver the same or substantially  
identical property.  
Typical holding periods for securities  
Acquires the same or substantially  
To be qualified small business stock,  
the stock must meet all of the following  
tests.  
bought and sold.  
The frequency and dollar amount of the  
identical property (if the appreciated  
position is a short sale, an offsetting  
notional principal contract, or a futures or  
forward contract).  
partnership's trades during the year.  
It must be stock in a C corporation (that  
The extent to which the partners pursue  
is, not S corporation stock).  
It must have been originally issued after  
the activity to produce income for a  
livelihood.  
Exception. Generally, constructive sale  
treatment doesn't apply if:  
August 10, 1993.  
As of the date the stock was issued, the  
The amount of time devoted to the  
The partnership closed the transaction  
activity.  
Like an investor, a trader must  
before the end of the 30th day after the  
end of the tax year in which it was entered  
into,  
corporation was a qualified small  
business. A qualified small business is a  
domestic C 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 include  
those of any predecessor of the  
generally report each sale of securities  
(taking into account commissions and any  
other costs of acquiring or disposing of the  
securities) on Form 8949 unless one of the  
exceptions described in the Instructions  
for Form 8949 applies. However, if a trader  
made the mark-to-market election (see  
Mark-to-market accounting method in the  
Instructions for Form 1065), each  
The partnership held the appreciated  
position to which the transaction relates  
throughout the 60-day period starting on  
the date the transaction was closed, and  
At no time during that 60-day period  
was the partnership's risk of loss reduced  
corporation. All corporations that are  
members of the same parent-subsidiary  
controlled group are treated as one  
corporation.  
by holding certain other positions.  
For details and other exceptions to  
these rules, see Pub. 550.  
transaction is reported in Part II of Form  
4797 instead of Form 8949.  
The partnership must have acquired the  
Rollover of gain from qualified stock.  
If the partnership sold qualified small  
business stock (defined below) it held for  
more than 6 months, it may postpone gain  
if it purchased other qualified small  
business stock during the 60-day period  
that began on the date of the sale. The  
partnership must recognize gain to the  
extent the sale proceeds exceed the cost  
of the replacement stock. Reduce the  
basis of the replacement stock by any  
postponed gain.  
stock at its original issue (either directly or  
through an underwriter), either in  
Regardless of whether a trader reports  
its gains and losses on Form 8949 or Form  
4797, the gain or loss from the disposition  
of securities isn’t taken into account when  
figuring net earnings from  
exchange for money or other property or  
as pay for services (other than as an  
underwriter) to the corporation. In certain  
cases, the partnership may meet the test if  
it acquired the stock from another person  
who met this test (such as by gift or at  
death) or through a conversion or  
self-employment on Schedules K and K-1.  
See section 1402(i) for an exception that  
applies to section 1256 contracts.  
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 interest  
expense and other expenses (excluding  
commissions and other costs of acquiring  
exchange of qualified small business  
stock by the holder.  
During substantially all the time the  
If the partnership chooses to postpone  
gain, report the sale on Form 8949, Part I  
or II (with the appropriate box checked), as  
partnership held the stock:  
1. The corporation was a C  
corporation;  
Instructions for Schedule D (Form 1065) 2023  
-3-  
2. At least 80% of the value of the  
corporation's assets were used in the  
active conduct of one or more qualified  
businesses (defined below); and  
3. The corporation was not a foreign  
corporation, domestic international sales  
corporation (DISC), former DISC,  
Gain attributable to real property, or an  
to report the deferral. You will need to  
attach Form 8997 annually until you  
dispose of the QOF investment. For more  
information, see Form 8997 and its  
instructions.  
intangible asset, that isn’t an integral part  
of a renewal community business.  
Gain from a related-party transaction.  
See Sales and Exchanges Between  
Related Persons in chapter 2 of Pub. 544.  
Exclusion of gain from DC Zone as-  
sets. If the partnership sold or  
Gain on the sale of an interest in a  
partnership or stock of an S corporation,  
which is a renewal community business  
during substantially all of the period you  
held such interest or stock, attributable to  
real property or an intangible asset which  
isn’t an integral part of the renewal  
community business.  
corporation that has made (or that has a  
subsidiary that has made) a section 936  
election before March 23, 2018, regulated  
investment company (RIC), real estate  
investment trust (REIT), real estate  
mortgage investment conduit (REMIC),  
financial asset securitization investment  
trust (FASIT), or cooperative.  
exchanged a District of Columbia  
Enterprise Zone (DC Zone) asset that it  
held for more than 5 years, it may be able  
to exclude the qualified capital gain. The  
DC Zone asset must have been acquired  
after 1997, and before 2012, to qualify as  
an asset for which the partnership may be  
able to take the exclusion. The sale or  
exchange of DC Zone capital assets  
reported on Form 8949 and Schedule D  
includes the following.  
See section 1400F (as in effect before  
its repeal on March 23, 2018) for more  
details and special rules.  
Note. A specialized small business  
investment company (SSBIC) is treated as  
having met test 2 above.  
How to report. If applicable, report  
the sale or exchange on Form 8949, Part II  
(with the appropriate box checked), as it  
would be reported if the exclusion was not  
taken. Enter “X” in column (f) and enter the  
amount of the exclusion as a negative  
number (in parentheses) in column (g).  
See the Instructions for Form 8949.  
Stock in a domestic corporation that  
was a DC Zone business.  
A qualified business is any business  
other than the following.  
Interest in a partnership that was a DC  
Zone business.  
One involving services performed in the  
Report the sale or exchange of tangible  
property used in the partnership's DC  
Zone business on Form 4797.  
field of health, law, engineering,  
architecture, accounting, actuarial  
science, performing arts, consulting,  
athletics, financial services, or brokerage  
services.  
Gains not qualified for exclusion.  
The following gains don’t qualify for the  
exclusion of gain from DC Zone assets.  
Deferral of gain invested in a qualified  
opportunity fund (QOF). If the  
One whose principal asset is the  
partnership realized gain from an actual,  
or deemed, sale or exchange with an  
unrelated person and during the 180-day  
period beginning on the date the gain was  
realized, invested an amount of the gain in  
a QOF, the partnership may be able to  
elect to temporarily defer part or all of the  
gain that would otherwise be included in  
income. If the partnership makes the  
election, the gain included in income is  
only to the extent, if any, the amount of  
realized gain exceeds the aggregate  
amount invested in a QOF during the  
180-day period beginning on the date gain  
is realized. The partnership 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. For more information, see  
section 1400Z-2.  
reputation or skill of one or more  
employees.  
Gain attributable to periods after  
December 31, 2016.  
Gain on the sale of an interest in a  
Any banking, insurance, financing,  
leasing, investing, or similar business.  
Any farming business (including the  
partnership or stock of an S corporation,  
which is a DC Zone business during  
substantially all of the period you held  
such interest or stock attributable to real  
property or an intangible asset which isn’t  
an integral part of the DC Zone business.  
raising or harvesting of trees).  
Any business involving the production  
of products for which percentage  
depletion can be claimed.  
Any business of operating a hotel,  
Gain from a related-party transaction.  
motel, restaurant, or similar business.  
See Sales and Exchanges Between  
Related Persons in chapter 2 of Pub. 544.  
Exclusion of gain from qualified com-  
munity assets. If the partnership sold or  
exchanged a qualified community asset  
acquired after 2001 and before 2010, that  
it held for more than 5 years, it can exclude  
any qualified capital gain. The exclusion  
applies to an interest in, or property of,  
certain qualified community assets.  
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 integral part  
of a DC Zone business.  
Qualified community asset. A  
qualified community asset is any of the  
following.  
Qualified opportunity fund (QOF). A  
QOF is any investment vehicle that is  
organized as either a corporation or  
partnership for the purpose of investing in  
eligible property that is located in a  
Qualified Opportunity Zone.  
See section 1400B (as in effect before  
its repeal on March 23, 2018) for more  
details on DC Zone assets and special  
rules.  
Qualified community stock.  
Qualified community partnership  
interest.  
How to report. If applicable, report  
the sale or exchange of a DC Zone asset  
on Form 8949, Part II (with the appropriate  
box checked), as it would be reported if  
the exclusion was not taken. Enter “X” in  
column (f) and enter the amount of the  
exclusion as a negative number (in  
parentheses) in column (g). See the  
Instructions for Form 8949.  
Qualified community business property.  
Eligible gain. Gain that is eligible to  
be deferred if it is invested in a QOF  
includes any amount treated as a capital  
gain for federal income tax purposes. See  
section 1400Z-2 for more details on QOFs  
and the special rules. Also, see IRS.gov/  
Qualified capital gain. Qualified  
capital gain is any gain recognized on the  
sale or exchange of a qualified community  
asset, but doesn't include any of the  
following.  
Gain attributable to periods after  
December 31, 2014.  
Gain treated as ordinary income under  
Undistributed long-term gains from a  
regulated investment company (RIC)  
or real estate investment trust (REIT).  
Report the partnership's share of  
How to report. Report the eligible  
gain on Schedule D (Form 1065) as it  
would otherwise be reported if the  
section 1245.  
Section 1250 gain figured as if section  
1250 applied to all depreciation rather  
than the additional depreciation.  
partnership were not making the election.  
See the Instructions for Form 8949 for how  
long-term gains from Form 2439, Notice to  
Shareholder of Undistributed Long-Term  
Instructions for Schedule D (Form 1065) 2023  
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Capital Gains, on Form 8949, Part II (with  
box F checked). Enter “From Form 2439”  
gain or loss (short term or long term)  
reported on Form 1099-B (or substitute  
Example 3—adjustment. The  
partnership 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 12 is checked, meaning that  
basis was reported to the IRS. However,  
the basis shown in box 1e is incorrect. Do  
not report 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.  
in column (a). Enter the gain in column (h). statement), or to its gain or loss.  
Leave all other columns blank. See the  
Instructions for Form 8949.  
See How To Complete Form 8949,  
Columns (f) and (g) in the Instructions for  
Form 8949 for details about possible  
adjustments to the partnership's gain or  
loss.  
NAV method for certain money market  
funds. Report capital gain or loss  
determined under the net asset value  
(NAV) method with respect to shares in a  
NAV money market fund 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.  
If the partnership chooses to report  
these transactions on lines 1a and 8a,  
don’t report them on Form 8949.  
Figure gain or loss on each line.  
Subtract the cost or other basis in column  
(e) from the proceeds (sales price) in  
column (d). Enter the gain or loss in  
column (h). Enter negative amounts in  
parentheses.  
Lines 1b, 2, 3, 8b, 9, and 10,  
Column (h)—Transactions  
Reported on Form 8949  
Specific Instructions  
Complete all necessary pages of Form  
8949 before completing line 1b, 2, 3, 8b, 9,  
or 10 of Schedule D.  
Figure gain or loss on each line. First,  
subtract cost or other basis (column (e))  
from proceeds/sales price (column (d)).  
Then, combine the result with any  
adjustments in column (g). Enter the gain  
or loss in column (h). Enter negative  
amounts in parentheses.  
Example 1—basis reported to the  
IRS. The partnership received a Form  
1099-B reporting the sale of stock held for  
3 years, showing proceeds (in box 1d) of  
$6,000 and cost or other basis (in box 1e)  
of $2,000. Box 12 is checked, meaning  
that basis was reported to the IRS. The  
partnership doesn't need to make any  
adjustments 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,  
the partnership can enter $6,000 on  
Schedule D, line 8a, column (d); $2,000 in  
column (e); and $4,000 ($6,000 − $2,000)  
in column (h).  
Rounding Off to Whole Dollars  
Cents can be rounded to whole dollars on  
Schedule D. If cents are rounded to whole  
dollars, all amounts must be rounded. To  
round, drop cent amounts under 50 and  
increase cent amounts over 49 to the next  
dollar. For example, $1.49 becomes $1  
and $1.50 becomes $2.  
Example 1—gain. Column (d) is  
$6,000 and column (e) is $2,000. Enter  
$4,000 in column (h).  
Example 2—loss. Column (d) is  
$6,000 and column (e) is $8,000. Enter  
($2,000) in column (h).  
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).  
If two or more amounts have to be  
added to figure the amount to enter on a  
line, include cents when adding the  
amounts and round only the total.  
Lines 1a and 8a—Transactions  
Not Reported on Form 8949  
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  
$11,000 ($6,000 + $5,000) on  
The partnership 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 collectibles) for which:  
Lines 6 and 13. Capital Gains  
(Losses) From Other  
Partnerships, Estates, and  
Trusts  
Schedule D, line 8a, column (d); $5,000  
($2,000 + $3,000) in column (e); and  
$6,000 ($11,000 − $5,000) in column (h).  
The partnership received a Form  
See the Schedule K-1 or other information  
supplied to the partnership by the other  
partnership, estate, or trust.  
1099-B (or substitute statement) that  
shows basis was reported to the IRS and  
doesn't show any adjustment in box 1f or  
1g;  
Example 2—basis not reported to  
the IRS. The partnership 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 12 isn’t checked, meaning  
that basis was not 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.  
Line 14. Capital Gain  
Distributions  
The Ordinary checkbox in box 2 of  
Form 1099-B (or substitute statement)  
isn’t checked;  
Enter on line 14 the total capital gain  
distributions paid to the partnership during  
the year.  
The QOF checkbox in box 3 of Form  
1099-B (or substitute statement) isn’t  
checked; and  
The partnership doesn't need to make  
any adjustments to the basis or type of  
Instructions for Schedule D (Form 1065) 2023  
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