Summary

Take a moment to review what has been covered in this lesson so far.

You learned how to identify the asset's holding period, adjusted basis, net short-term and long-term capital gains or losses, the taxable gain or deductible loss, and the amount of capital loss carryover.

Taxpayers must use Form 8949 and Schedule D to report capital gains and losses on the sale of assets such as the sale of stock.

Completion of Form 8949 and Schedule D requires information from Form 1099-B and Form 1099-DIV or a 1099 Consolidated Statement and from taxpayer records. Form 8949 contains all capital gain and loss transactions. None are reported directly on Schedule D. The subtotals from Form 8949 are carried over to Schedule D where the gain or loss is calculated in aggregate.

A taxpayer who is carrying over a loss from a previous year must also provide information from the prior year's tax return in order to compute the carryover amount.