Introduction

Use Schedule D (Form 1040) to report the following.

-The sale or exchange of a capital asset (defined on this page) not reported on another form or schedule.

-Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit.

-Capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14).

-Nonbusiness bad debts.

Additional information.   

See Pub. 544 and Pub. 550 for more details. For a comprehensive filled-in example of Schedule D, see Pub. 550.

What's New

Self-created musical works.  

You can elect to treat certain musical compositions or copyrights as capital assets. See Pub. 550 for details.

Sale of your home.   

The election to suspend the 5-year test period for ownership and use of a main home now can be made by employees of the intelligence community. See Sale of Your Home on page D-2.

Renewal community businesses.   

If you sold or exchanged a qualified community asset acquired after December 31, 2001, and held more than 5 years, you may be able to exclude any qualified capital gain. See Exclusion of Gain From Qualified Community Assets on page D-6.