Categories: General Tax Terms
Schedule D is a form used by taxpayers to report capital gains and losses from the sale of securities, property, and other assets in their federal income tax return.
It is part of IRS Form 1040 and helps determine the tax implications of these transactions, allowing taxpayers to calculate net capital gains or losses, which can affect overall tax liability. Taxpayers must detail each transaction, including the date of acquisition, date of sale, proceeds, and cost basis.
For example, if an individual sold shares of stock for a profit, they would report that transaction on Schedule D to account for the gain when filing their taxes.
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