Basic Layout of the 1040 IRS Schedule D
The d form schedule is laid out in two parts:
- Part I - for Short-Term Capital Gains and Losses - Assets Held One Year or Less
- Part II - for Long-Term Capital Gains and Losses - Assets Held More Than One Year
The holding period of the trade is what determines whether it is long or short term. Anything held one year (365 days) or less is considered short term, and anything held for more than one year (366 days or more) is considered long term. Therefore one of the primary functions that needs to be done is to determine whether each trade is long or short term.
Each part is identical when it comes to listing your trade activity for the current tax year. There are six columns in each part as shown below:
| (a) Description of property | (b) Date acquired | (c) Date sold | (d) Sales price | (e) Cost or other basis | (f) Gain (or loss) |
TradeLog's Gains & Losses report was designed to match the columns as shown above and is suitable as an attachment to the IRS schedule d; as is true also of the TradeLog Schedule D-1 attachment report, which is an exact replica of the IRS form.
Now that you understand the layout, learn about entering trades on a Schedule D.
Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Armen Computing Ltd. does not make investment recommendations nor provide financial, tax or legal advice. You are solely responsible for your investment and tax reporting decisions. Please consult your tax advisor or accountant to discuss your specific situation.
