What is Schedule D?
Schedule D summarizes all capital gains and losses from securities sales (via Form 8949), capital gain distributions (from 1099-DIV Box 2a), and other capital transactions. It calculates the net capital gain or loss that flows to Form 1040 Line 7.
SupportedKey Lines
| Line | Description | Source |
|---|---|---|
| Line 7 | Net short-term capital gain/loss | From Form 8949 categories A, B, C |
| Line 13 | Capital gain distributions | From 1099-DIV Box 2a |
| Line 15 | Net long-term capital gain/loss | From Form 8949 categories D, E, F + Line 13 |
| Line 16 | Net capital gain/loss | Line 7 + Line 15 |
| Line 18 | 28% rate gain (collectibles) | From 1099-DIV Box 2d |
| Line 19 | Unrecaptured §1250 gain | From 1099-DIV Box 2b (25% rate) |
How PaisaTax Handles It
- Fully computed — aggregates from all Form 8949 entries and 1099-DIV capital gain distributions
- QDCGT worksheet: When net long-term gains or qualified dividends exist, the engine uses preferential 0%/15%/20% rates instead of ordinary rates on Form 1040 Line 16
- $3,000 loss limit: Net capital losses are limited to $3,000 ($1,500 MFS) per year
Common Situations
- Net gain: Flows to Form 1040 Line 7 as income. Long-term gains get preferential rates.
- Net loss: Limited to $3,000 deduction per year. Excess carries forward to future years.
- Capital gain distributions (1099-DIV Box 2a): Go directly to Line 13 without needing Form 8949.