Schedule D - Capital Gains and Losses

Schedule D

When a taxpayer sells a capital asset , i.e., property owned and used for personal or investment purposes, the sale will result in either a capital gain or a capital loss and is generally reported on Schedule D (Form 1040).

Form 8997 - Statement of Qualified Opportunity Fund Investments

The Tax Cuts and Jobs Act of 2017 provided for certain economically distressed census tracts to be designated Qualified Opportunity Zones (QOZ) for the purpose of attracting investment.

Can earnest money lost when trying to purchase a home be deducted?

If a taxpayer lost earnest money due to a failed personal home purchase, this loss cannot be claimed on the return.

How to Enter the Sale of Two Main Homes

If they own and reside in more than one residence, they will need to determine which is their main home based on the facts and circumstances.

Form 1099-B - Aggregating Multiple Stock Transactions

Brokerage firms are required to report stock transactions on Form 1099-B.

Sale of Inherited Property

To determine if the sale of inherited property is taxable, you must first determine the taxpayer's basis in the property.

Where to enter a prior year capital loss carryover

Entering a Wash Sale on Form 8949

A sale and purchase with the same broker within the 30-day time frame that results in a loss is indicated on Form 1099-B with an amount in Box 1g "Wash sale loss disallowed" or on a brokerage statement with adjustment code "W".

Form 8949 - Sales and Dispositions of Capital Assets

When entering information in the Form 8949 menu in Tax Processors Plus Online, always enter exactly what shows on the form or statement for the sales price and cost basis.

Excluding the Sale of Main Home

A taxpayer may qualify to exclude from their income all or part of any gain from the sale of their main home.