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Instructions for Schedule D (Form 1040)
taxmap/instr/i1040sd-002.htm#TXMP6762f4f6

Specific Instructions(p8)

rule
taxmap/instr/i1040sd-002.htm#TXMP1cb36847

Form 8949(p8)

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Enter all sales and exchanges of capital assets, including stocks, bonds, etc., and real estate (if not reported on Form 4684, 4797, 6252, 6781, or 8824). Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. Report short-term gains or losses on line 1. Report long-term gains and losses on line 3.
Enter the details of each transaction on a separate line of Form 8949 (unless the Exception to reporting each transaction on a separate line described later applies to you). Use as many Forms 8949 as you need.
Use a separate Form 8949, Part I, for each of the following types of transactions.
  1. Short-term transactions reported to you on Form 1099-B (or substitute statement) with an amount shown for cost or other basis unless the statement indicates that amount was not reported to the IRS. Check box A at the top of this page of Form 8949. If your substitute statement shows cost or other basis for the transaction but indicates it was not reported to the IRS, report that transaction on page 1 of a Form 8949 with box B, not box A, checked (see 2 below).
  2. Short-term transactions reported to you on Form 1099-B (or substitute statement) without an amount shown for cost or other basis. Check box B at the top of this page of Form 8949. If your substitute statement shows cost or other basis for the transaction but indicates it was not reported to the IRS, report that transaction on page 1 of a Form 8949 with box B, not box A, checked.
  3. Short-term transactions for which you did not receive a Form 1099-B (or substitute statement). Check box C at the top of page 1 of this Form 8949.
Use a separate Form 8949, Part II, for each of the following types of transactions.
  1. Long-term transactions reported to you on Form 1099-B (or substitute statement) with an amount shown for cost or other basis unless the statement indicates that amount was not reported to the IRS. Check box A at the top of this page of Form 8949. If your substitute statement shows cost or other basis for the transaction but indicates it was not reported to the IRS, report that transaction on page 2 of a Form 8949 with box B, not box A, checked (see 2 below).
  2. Long-term transactions reported to you on Form 1099-B (or substitute statement) without an amount shown for cost or other basis. Check box B at the top of this page of Form 8949. If your substitute statement shows cost or other basis for the transaction but indicates it was not reported to the IRS, report that transaction on page 2 of a Form 8949 with box B, not box A, checked.
  3. Long-term transactions for which you did not receive a Form 1099-B (or substitute statement). Check box C at the top of page 2 of this Form 8949.
Include on each Form 8949 only transactions described in the text for the box you check (A, B, or C). If you have more than one type of transaction (A, B, or C), complete a separate Form 8949 for each. Check only one box on each Form 8949. For example, if you check box A in Part I of one Form 8949, include on that Form 8949 only short-term gains and losses from transactions your broker reported to you on a Form 1099-B (or substitute statement) showing that basis was reported to the IRS. If you have other types of transactions, report those on a separate Form 8949 and check the box that applies.
Enter on Schedule D the combined totals from all your Forms 8949. Form 8949 and Schedule D explain exactly how to do this.
taxmap/instr/i1040sd-002.htm#TXMP6b84682a
Exception to reporting each transaction on a separate line.(p8)
rule
Instead of reporting each of your transactions on a separate line of Form 8949, you can report them on an attached statement containing all the same information as Form 8949 and in a similar format. Use as many attached statements as you need. Enter the combined totals from all your attached statements on a Form 8949 with the appropriate box checked. For example, report on line 3 of a Form 8949 with box A checked all long-term gains and losses from transactions your broker reported to you on a statement showing that the basis of the property sold was reported to the IRS. If you have statements from more than one broker, report the totals from each broker on a separate line.
Do not enter available upon request and summary totals in lieu of reporting the details of each transaction on Form(s) 8949 or attached statements.
taxmap/instr/i1040sd-002.htm#TXMP47beca27
E-file.(p8)
rule
If you e-file your return but choose not to include your transactions on the electronic short-term capital gain (or loss) or long-term capital gain (or loss) records, you must attach Form 8949 (or a statement with the same information) to Form 8453 and mail the forms to the IRS.
taxmap/instr/i1040sd-002.htm#TXMP0a3e30d4
Charitable gift annuity.(p8)
rule
If you are the beneficiary of a charitable gift annuity and receive a Form 1099-R showing an amount in box 3, report the box 3 amount on line 3 of a Form 8949 that has box C checked at the top. Enter Form 1099-R in column (a). Enter the box 3 amount in column (e).
taxmap/instr/i1040sd-002.htm#TXMP36150ee1
Canadian registered retirement plan.(p8)
rule
If you are the beneficiary or annuitant of a Canadian registered retirement plan, enter any amount from Form 8891, line 10d, on line 1 or line 3 (whichever applies) of a Form 8949 that has box C checked at the top. Enter Form 8891 in column (a). Enter the line 10d amount in column (e).
taxmap/instr/i1040sd-002.htm#TXMP03cb5792
Other gains or losses where sales price or basis is not known.(p8)
rule
If you have another gain or loss for which you do not know the sales price or basis (such as a long-term capital gain from Form 8621), enter a description of the gain or loss in column (a) of a Form 8949 that has box C checked at the top. If you have a gain, enter it in column (e). If you have a loss, enter it in column (f). Complete any other columns you can.
taxmap/instr/i1040sd-002.htm#TXMP297918a5
Rounding off to whole dollars.(p8)
rule
You can round off cents to whole dollars on your Form 8949. 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 example, $1.39 becomes $1 and $2.50 becomes $3.
taxmap/instr/i1040sd-002.htm#TXMP56d9f22b

Column (a)—Description of Property(p8)

rule
You can use stock ticker symbols or abbreviations to describe the property as long as they are based on the descriptions of the property as shown on Form 1099-B or 1099-S (or substitute statement).
If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, also enter INH-2010 in column (a).
taxmap/instr/i1040sd-002.htm#TXMP486619cf

Column (b)—Code(p8)

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In order to explain any adjustment to gain or loss in column (g), put the appropriate code in column (b). See How To Complete Form 8949, Columns (b) and (g), later. Also see the instructions for column (g). If more than one code applies, enter all the codes that apply. Separate them by a space or a comma.
taxmap/instr/i1040sd-002.htm#TXMP76fdb535

Column (c)—Date Acquired(p8)

rule
Enter in this column the date you acquired the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date you acquired the stock or property delivered to the broker or lender to close the short sale.
The date acquired for an asset you held on January 1, 2001, for which you made an election to recognize any gain in a deemed sale is the date of the deemed sale and reacquisition.
If you disposed of property that you acquired by inheritance from someone who died before or after 2010, report the sale or exchange on line 3 and enter INHERITED in column (c) instead of the date you acquired the property. Also report the sale or exchange that way if you inherited the property from someone who died in 2010 and the executor of the decedent's estate did not elect to file Form 8939. If you inherited the property from someone who died in 2010 and the executor made the election to file Form 8939, also see the instructions for column (a) and see Pub. 4895 to see whether you should report the sale or exchange on line 1 or line 3.
If you sold a block of stock (or similar property) that you acquired through several different purchases, you may report the sale on one line and enter VARIOUS in column (c). However, you still must report the short-term gain or (loss) on the sale in Part I and the long-term gain or (loss) in Part II.
taxmap/instr/i1040sd-002.htm#TXMP4d886456

Column (d)—Date Sold(p9)

rule
Enter in this column the date you sold the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date you delivered the stock or property to the broker or lender to close the short sale.
taxmap/instr/i1040sd-002.htm#TXMP5fab329c

Column (e)—Sales Price(p9)

rule
If you sold stocks or bonds and you received a Form 1099-B (or substitute statement) from your broker that shows gross sales price, enter that amount in column (e). But if Form 1099-B (or substitute statement) indicates that gross proceeds minus commissions and option premiums were reported to the IRS, enter that net amount in column (e).
You should not have received a Form 1099-B (or substitute statement) for a transaction merely representing the return of your original investment in a nontransferable obligation, such as a savings bond or a certificate of deposit. But if you did, report the amount shown on Form 1099-B (or substitute statement) in both columns (e) and (f).
taxmap/instr/i1040sd-002.htm#TXMP6385392b

Column (f)—Cost or Other Basis(p9)

rule
In general, the cost or other basis is the cost of the property plus purchase commissions and improvements, minus depreciation, amortization, and depletion. If you inherited the property, got it as a gift, or received it in a tax-free exchange or involuntary conversion or in connection with a wash sale, you may not be able to use the actual cost as the basis. If you do not use the actual cost, attach an explanation of your basis.
If you sold stock, adjust your basis by subtracting all the nondividend distributions you received before the sale. Also adjust your basis for any stock splits. See Pub. 550 for details.
If you elected to recognize gain on an asset held on January 1, 2001, your basis in the asset is its closing market price or fair market value, whichever applies, on the date of the deemed sale and reacquisition, whether the deemed sale resulted in a gain or an unallowed loss.
You can use the average basis method to determine the basis of shares of stock if the shares are identical to each other, you acquired them at different prices and left them in an account with a custodian or agent, and either: Shares are identical if they have the same CUSIP number, except that shares of stock in a DRP are not identical to shares of stock that are not in a DRP, even if they have the same CUSIP number. If you are using the average basis method and received a Form 1099-B (or substitute statement) that shows an incorrect basis, enter B in column (b), enter the basis shown on Form 1099-B (or substitute statement) in column (f), and see How To Complete Form 8949, Columns (b) and (g), later. For details on making the election and how to figure average basis, see Pub. 550.
The basis of property acquired by gift is generally the basis of the property in the hands of the donor. The basis of property acquired from a decedent who died before or after 2010 is generally the fair market value at the date of death. This is also the basis of property acquired from a decedent who died in 2010 if the executor of the decedent's estate did not elect to file Form 8939. See Pub. 551 for details. If you sold property that you inherited from someone who died in 2010 and the executor made the election to file Form 8939, see Pub. 4895.
Increase the cost or other basis of an original issue discount (OID) debt instrument by the amount of OID that has been included in gross income for that instrument. See Pub. 550 for details.
If a charitable contribution deduction is allowable because of a bargain sale of property to a charitable organization, the adjusted basis for purposes of determining gain from the sale is the amount that has the same ratio to the adjusted basis as the amount realized has to the fair market value. See Pub. 544 for details.
For more details, see Pub. 551.
taxmap/instr/i1040sd-002.htm#TXMP1819f0df
Form 1099-B.(p9)
rule
If the property you sold was a covered security, its basis should be shown in box 3 of the Form 1099-B (or substitute statement) you received from your broker. Generally, a covered security is a security other than:
If box 6 on Form 1099-B is checked, the property sold was not a covered security.
Enter the basis shown on Form 1099-B in column (f). If the basis shown on Form 1099-B is not correct, see How To Complete Form 8949, Columns (b) and (g), later, for the adjustment you must make.
If no basis is shown on Form 1099-B (or substitute statement), enter the correct basis of the property in column (f).
taxmap/instr/i1040sd-002.htm#TXMP08fabcc7

Column (g)—Adjustments to Gain or Loss(p9)

rule
Enter in this column any necessary adjustments to gain or loss. Enter negative amounts in parentheses. Also enter a code in column (b) to explain the adjustment. See How To Complete Form 8949, Columns (b) and (g), later.
Include in this column any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (e). If you include any expense of sale in this column, enter O in column (b).
taxmap/instr/i1040sd-002.htm#TXMP3358f770
More than one code.(p9)
rule
If you entered more than one code in column (b) on the same line, enter the net adjustment in column (g). For example, if one adjustment is $5,000 and another is ($1,000), enter $4,000 ($5,000 − $1,000).

Example.(p9)

You sold your main home in 2011 for $320,000 and received a Form 1099-S showing the $320,000 gross proceeds. The home's basis was $100,000. You had selling expenses of $20,000. Under the tests described in Sale of Your Home, earlier, you can exclude the entire $200,000 gain from income. On Form 8949, Part II, check box C at the top. On line 3, complete columns (a), (c), and (d). Enter $320,000 in column (e) and $100,000 in column (f). Enter H in column (b). In column (g), enter $220,000 (your $200,000 exclusion + your selling expenses of $20,000) as a negative number. Put it in parentheses to show it is negative. If this is your only transaction on this Form 8949, enter $320,000 in column (e) on line 10 of Schedule D, $100,000 in column (f), and $220,000 in column (g). In column (h), enter -0- ($320,000 − $100,000 − $220,000).
  How To Complete Form 8949, Columns (b) and (g)
For most transactions, you do not need to complete columns (b) and (g) and can leave them blank. You may need to complete columns (b) and (g) if you got a Form 1099-B or 1099-S that is incorrect, if you are excluding or postponing a capital gain, if you have a disallowed loss, or in certain other situations. Details are in the table below.
IF . . .THEN enter this code in column (b) . . .AND. . .
You received a Form 1099-B (or substitute statement) and the basis shown in box 3 is incorrect. . . .BEnter the basis shown on Form 1099-B (or substitute statement) in column (f).

If the correct basis is higher than the basis shown on Form 1099-B (or substitute statement), enter the difference between the two amounts as a negative number (in parentheses) in column (g).

If the correct basis is lower than the basis shown on Form 1099-B (or substitute statement), enter the difference between the two amounts as a positive number in column (g).
You received a Form 1099-B (or substitute statement) and the type of gain or loss (short term or long term) shown in box 8 is incorrect . . . . TEnter -0- in column (g) unless an adjustment is required because of another code. Report the gain or loss in the correct Part of Form 8949.
You received a Form 1099-B or 1099-S as a nominee for the actual owner of the property. . . .NReport the transaction on Form 8949 as you would if you were the actual owner, but enter any resulting gain as a negative adjustment (in parentheses) in column (g) or any resulting loss as a positive adjustment in column (g). However, if you received capital gain distributions as a nominee, report them instead as described under Capital Gain Distributions, earlier.
You sold or exchanged your main home at a gain, must report the sale or exchange on Form 8949, and can exclude some or all of the gain. . . . HReport the sale or exchange on Form 8949 as you would if you were not taking the exclusion. Then enter the amount of excluded (nontaxable) gain as a negative number (in parentheses) in column (g). See the example in the instructions for Form 8949, column (g).
You sold or exchanged qualified small business stock and can exclude part of the gain. . . .SReport the sale or exchange on Form 8949 as you would if you were not taking the exclusion. Then enter the amount of the exclusion as a negative number (in parentheses) in column (g).
You can exclude all or part of your gain under the rules explained earlier in these instructions for DC Zone assets or qualified community assets. . . . XReport the sale or exchange on Form 8949 as you would if you were not taking the exclusion. Then enter the amount of the exclusion as a negative number (in parentheses) in column (g).
You are electing to postpone all or part of your gain under the rules explained earlier in these instructions for rollover of gain from QSB stock, empowerment zone assets, publicly traded securities, or stock sold to ESOPs or certain cooperatives. . . . RReport the sale or exchange on Form 8949 as you would if you were not making the election. Then enter the amount of postponed gain as a negative number (in parentheses) in column (g).
You have a nondeductible loss from a wash sale. . . .WEnter the amount of the nondeductible loss as a positive number in column (g). See Wash Sales, earlier, for details.
You have a nondeductible loss other than a loss indicated by code W. . . .LEnter the amount of the nondeductible loss as a positive number in column (g). See the example under Nondeductible Losses, earlier.
You include any expense of sale or certain option premiums in column (g) or you have an adjustment not explained above in this column. . . . OEnter your expenses of sale or the appropriate adjustment amount in column (g). Enter any expenses of sale as a negative number (in parentheses). See the instructions for Form 8949, column (g). If you sold a call option and it was exercised, see Gain or Loss From Options, earlier, for information about reporting certain option premiums.
None of the other statements in this column apply. . .Leave columns (b) and (g) blank.
taxmap/instr/i1040sd-002.htm#TXMP73135104

Schedule D(p10)

rule
Complete all necessary pages of Form 8949 before you complete line 1, 2, 3, 8, 9, or 10 of Schedule D.
taxmap/instr/i1040sd-002.htm#TXMP4ee74f55

Rounding Off to Whole Dollars(p10)

rule
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 example, $1.39 becomes $1 and $2.50 becomes $3.
If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.
taxmap/instr/i1040sd-002.htm#TXMP3d303229

Lines 1, 2, 3, 8, 9, and 10, column (h)—Gain or Loss(p10)

rule
Figure gain or loss on each line. First, subtract cost or other basis (column (f)) from sales price (column (e)). Then take into account any adjustments in column (g). Enter the gain or loss in column (h). Enter negative amounts in parentheses.
taxmap/instr/i1040sd-002.htm#w24331i01
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Capital Loss Carryover Worksheet—Lines 6 and 14

Use this worksheet to figure your capital loss carryovers from 2010 to 2011 if your 2010 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2010 Schedule D, line 16, or (b) the amount on your 2010 Form 1040, line 41 (or your 2010 Form 1040NR, line 39, if applicable) is less than zero. Otherwise, you do not have any carryovers.

If you and your spouse once filed a joint return and are filing separate returns for 2011, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss.

1.Enter the amount from your 2010 Form 1040, line 41, or your 2010 Form 1040NR, line 39. If a loss, enclose the amount in parentheses1. 
2.Enter the loss from your 2010 Schedule D, line 21, as a positive amount2. 
3.Combine lines 1 and 2. If zero or less, enter -0-3. 
4.Enter the smaller of line 2 or line 3 4.   
 If line 7 of your 2010 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 2010 Schedule D, line 7, as a positive amount5. 
6.Enter any gain from your 2010 Schedule D, line 15. If a loss, enter -0-6.   
7.Add lines 4 and 67. 
8.Short-term capital loss carryover for 2011. 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 8. 
 If line 15 of your 2010 Schedule D is a loss, go to line 9; otherwise, skip lines 9 through 13.   
9.Enter the loss from your 2010 Schedule D, line 15, as a positive amount9. 
10.Enter any gain from your 2010 Schedule D, line 7. If a loss, enter -0-10.   
11.Subtract line 5 from line 4. If zero or less, enter -0-11.   
12.Add lines 10 and 1112. 
13.Long-term capital loss carryover for 2011. 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 13. 
       

Example 1.(p10)

Column (e) is $6,000 and column (f) is ($2,000). Enter $4,000 in column (h).

Example 2.(p10)

Column (e) is $6,000 and column (f) is ($8,000). Enter ($2,000) in column (h).

Example 3.(p11)

Column (e) is $6,000, column (f) is ($2,000), and column (g) is ($1,000). Enter $3,000 in column (h).
taxmap/instr/i1040sd-002.htm#TXMP71629a18

Line 18(p11)

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If you checked Yes on line 17, complete the 28% Rate Gain Worksheet in these instructions if either of the following apply for 2011.
Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property.
Include on the worksheet any gain (but not loss) from the sale or exchange of an interest in a partnership, S corporation, or trust held for more than 1 year and attributable to unrealized appreciation of collectibles. For details, see Regulations section 1.1(h)-1. Also, attach the statement required under Regulations section
1.1(h)-1(e).
taxmap/instr/i1040sd-002.htm#TXMP781a3f45

Line 19(p12)

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If you checked Yes on line 17, complete the Unrecaptured Section 1250 Gain Worksheet in these instructions if any of the following apply for 2011.
taxmap/instr/i1040sd-002.htm#w24331i03b
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28% Rate Gain Worksheet—Line 18

1.Enter the total of all collectibles gain or (loss) from items you reported on Form 8949, line 31. 
2.Enter as a positive number the amount of any section 1202 exclusion you reported in column (g) of Form 8949, line 3, with code "S" in column (b), for which you excluded 50% of the gain, plus 2/3 of any section 1202 exclusion you reported in column (g) of Form 8949, line 3, with code "S" in column (b), for which you excluded 60% of the gain 2. 
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.
Right brace4. 
5.Enter your long-term capital loss carryovers from Schedule D, line 14, and Schedule K-1 (Form 1041),
box 11, code C
5.(       ) 
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. 
           
taxmap/instr/i1040sd-002.htm#TXMP6a35ae5b

Instructions for the Unrecaptured Section 1250 Gain Worksheet(p12)

rule
taxmap/instr/i1040sd-002.htm#TXMP23bd89c0
Lines 1 through 3.(p12)
rule
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.
taxmap/instr/i1040sd-002.htm#TXMP5660df1b
Line 4.(p12)
rule
To figure the amount to enter on line 4, follow the steps below for each installment sale of trade or business property held more than 1 year.
taxmap/instr/i1040sd-002.htm#TXMP632e6fb9
Step 1.(p12)
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 2011 Form 4797 (or the comparable lines of Form 4797 for the year of sale) for the property.
taxmap/instr/i1040sd-002.htm#TXMP16f39f61
Step 2.(p12)
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 2011 Form 4797 (or the comparable line of Form 4797 for the year of sale) for the property. The result is your total unrecaptured section 1250 gain that must be allocated to the installment payments received from the sale.
taxmap/instr/i1040sd-002.htm#TXMP79390d41
Step 3.(p12)
Generally, the amount of section 1231 gain on each installment payment is treated as unrecaptured section 1250 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 2011 as the smaller of (a) the amount from line 26 or line 37 of your 2011 Form 6252, whichever applies, or (b) the amount of unrecaptured section 1250 gain remaining to be reported. This amount is generally the total unrecaptured section 1250 gain for the sale reduced by all gain reported in prior years (excluding section 1250 ordinary income 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 section 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. Include this amount on line 4.
taxmap/instr/i1040sd-002.htm#TXMP7f97f476
Line 10.(p13)
rule
Include on line 10 your share of the partnership's unrecaptured section 1250 gain that would result if the partnership had transferred all of its section 1250 property in a fully taxable transaction immediately before you sold or exchanged your interest in that partnership. If you recognized less than all of the realized gain, the partnership will be treated as having transferred only a proportionate amount of each section 1250 property. For details, see Regulations section 1.1(h)-1. Also attach the statement required under Regulations
section 1.1(h)-1(e).
taxmap/instr/i1040sd-002.htm#TXMP0d8d5f41
Line 12.(p13)
rule
An example of an amount to include on line 12 is unrecaptured section 1250 gain from the sale of a vacation home you previously used as a rental property but converted to personal use prior to the sale. To figure the amount to enter on line 12, follow the applicable instructions below.
taxmap/instr/i1040sd-002.htm#TXMP3900801c
Installment sales.(p13)
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 did not make an entry in Part I of your Form 4797 for the year of sale.
taxmap/instr/i1040sd-002.htm#w24331i02
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Unrecaptured Section 1250 Gain Worksheet—Line 19

 If you are not 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 did not 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 12.  
3.Subtract line 2 from line 13.  
4.Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252 from installment sales 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 56.  
7.Enter the smaller of line 6 or the gain from Form 4797, line 7 7.  
8.Enter the amount, if any, from Form 4797, line 88.  
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, trust, real estate investment trust, or 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 did not make an entry in Part I of Form 4797 for the year of sale (see instructions) 12.  
13.Add lines 9 through 1213.  
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 C*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 or 2555-EZ (relating to foreign earned income), see the footnote in the Foreign Earned Income Tax Worksheet in the Form 1040 instructions before completing this line.     
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Other sales or dispositions of section 1250 property.(p13)
For each sale of property held more than 1 year (for which you did not make an entry in Part I of Form 4797), 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 Form 4797 for the property. Next, reduce that amount by any section 1250 ordinary income recapture for the sale. This is the amount from line 26g of Form 4797 for the property. The result is the total unrecaptured section 1250 gain for the sale. Include this amount on line 12.
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Line 21(p13)

rule
You have a capital loss carryover from 2011 to 2012 if you have a loss on line 16 and either:
To figure any capital loss carryover to 2012, you will use the Capital Loss Carryover Worksheet in the 2012 Instructions for Schedule D. If you want to figure your carryover to 2012 now, see Pub. 550.
taxtip
You will need a copy of your 2011 Form 1040 and Schedule D to figure your capital loss carryover to 2012.
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pencil

Schedule D Tax Worksheet

 Complete this worksheet only if line 18 or line 19 of Schedule D is more than zero. Otherwise, complete the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040, line 44 (or in the Instructions for Form 1040NR, line 42) to figure your tax. 
 
Exception: Do not 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, line 9b (or Form 1040NR, line 10b); or
  • Form 1040, line 43 (or Form 1040NR, line 41) is zero or less.

Instead, see the instructions for Form 1040, line 44 (or Form 1040NR, line 42).
 
 
 1. Enter your taxable income from Form 1040, line 43 (or Form 1040NR, line 41). (However, if you are filing Form 2555 or 2555-EZ (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 44) 1.  
 2. Enter your qualified dividends from Form 1040, line 9b (or Form 1040NR, line 10b)2.   
 3. Enter the amount from Form 4952 (used to figure investment interest expense deduction), line 4g3.   
 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.   
 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-**9.   
 10. Add lines 6 and 910.   
 11. Add lines 18 and 19 of Schedule D**11.   
 12. Enter the smaller of line 9 or line 11 12.   
 13. Subtract line 12 from line 1013.  
 14. Subtract line 13 from line 1. If zero or less, enter -0-14.  
 15. Enter: 
   
• $34,500 if single or married filing separately;
• $69,000 if married filing jointly or qualifying widow(er); or
• $46,250 if head of household
Right brace15.   
 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 larger of line 17 or line 18 19.   
 20. Subtract line 17 from line 16. This amount is taxed at 0%.20.   
   If lines 1 and 16 are the same, skip lines 21 through 33 and go to line 34. Otherwise, go to line 21. 
 21. Enter the smaller of line 1 or line 13 21.   
 22. Enter the amount from line 20 (if line 20 is blank, enter -0-)22.   
 23. Subtract line 22 from line 21. If zero or less, enter -0-23.   
 24. Multiply line 23 by 15% (.15)24.  
   If Schedule D, line 19, is zero or blank, skip lines 25 through 30 and go to line 31. Otherwise, go to line 25. 
 25. Enter the smaller of line 9 above or Schedule D, line 19 25.   
 26. Add lines 10 and 1926.   
 27. Enter the amount from line 1 above27.   
 28. Subtract line 27 from line 26. If zero or less, enter -0-28.   
 29. Subtract line 28 from line 25. If zero or less, enter -0-29.   
 30. Multiply line 29 by 25% (.25)30.  
   If Schedule D, line 18, is zero or blank, skip lines 31 through 33 and go to line 34. Otherwise, go to line 31. 
 31. Add lines 19, 20, 23, and 2931.   
 32. Subtract line 31 from line 132.   
 33. Multiply line 32 by 28% (.28)33.  
 34. Figure the tax on the amount on line 19. If the amount on line 19 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 19 is $100,000 or more, use the Tax Computation Worksheet 34.  
 35. Add lines 24, 30, 33, and 3435.  
 36. 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 36.  
 37. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 35 or line 36. Also include this amount on Form 1040, line 44 (or Form 1040NR, line 42). (If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet in the Form 1040 instructions) 37.  
        
   *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 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet in the Instructions for Form 1040, line 44, before completing this line.