U. S. Business Income Tax Return

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2025

Instructions for Schedule D
(Form 1120)
Capital Gains and Losses
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments to
Schedule D (Form 1120) and its instructions, such as
legislation enacted after they were published, go to
IRS.gov/Form1120.

New codes to use for reporting digital asset transactions. Codes G, H, I, J, K, and L were added to
Schedule D (Form 1120), lines 1b, 2, 3, 8b, 9, and 10 to
include the reporting of digital asset transactions. See
Form 1099-DA, Digital Asset Proceeds From Broker
Transactions, and Form 8949, Sales and Other
Dispositions of Capital Assets, and their instructions for
additional information regarding digital assets.
Deferral of gain invested in a qualified opportunity
fund (QOF). Taxpayers who made a deferral election for
gains invested in a QOF that meets the 7-year holding
period threshold may be eligible for a basis adjustment.
See Form 8997 and its instructions for additional
information regarding investments in QOFs.

General Instructions
Purpose of Schedule

Use Schedule D (Form 1120) to report the following.
• The overall gain or loss from transactions reported on
Form 8949.
• Certain transactions the corporation does not have to
report on Form 8949.
• Gain from Form 6252, Installment Sale Income, or from
Part I of Form 4797, Sales of Business Property.
• Gain or loss from Form 8824, Like-Kind Exchanges.
• Unused capital loss carryover.
• Capital gain distributions not reported directly on Form
1120, line 8 (or effectively connected capital gain
distributions not reported directly on Form 1120-F,
1120-C, 1120-H, or all other related forms).

Who Must File

Complete and attach Schedule D (Form 1120) to Form
1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC,
1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT,
1120-RIC, 1120-SF, or certain Forms 990-T.

Nov 12, 2025

Use Form 8949 to report the following.
• Sales or exchanges of capital assets (defined later) not
reported on another form or schedule.
• Nonbusiness bad debts.
• Undistributed long-term capital gains from Form 2439.
• Worthlessness of a security.
• The corporation’s share of gain or loss from a
partnership, S corporation, estate, or trust.
• Sale of stock of a specified 10%-owned foreign
corporation, adjusted for the dividends-received
deduction under section 245A, but only if the sale would
otherwise generate a loss.
• Gain or loss on the transfer by a nonresident alien
individual or foreign corporation of an interest in a
partnership that is engaged in a U.S. trade or business.
• Elections to defer capital gain invested in a Qualified
Opportunity Fund (QOF).
• Dispositions of interests in QOFs.
Complete all applicable lines of Form 8949 before
completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form
1120). See the Instructions for Form 8949 for special
provisions and exceptions to completing Form 8949 for
certain corporations. Also, see the instructions for lines 1a
and 8a, later, for more information about when to use
Form 8949.
Use Form 4797 to report the following.

• The sale or exchange of:

1. Real property used in a trade or business;
2. Depreciable and amortizable tangible property used
in a trade or business (however, see Disposition of
Depreciable Property Not Used in Trade or Business in
the Instructions for Form 4797);
3. Oil, gas, geothermal, or other mineral property; and
4. Section 126 property.
• The involuntary conversion (other than from casualty or
theft) of property used in your trade or business and
capital assets held more than 1 year in connection with a
trade or business or a transaction entered into for profit
(however, see Disposition of Depreciable Property Not
Used in Trade or Business in the Instructions for Form
4797).
• The disposition of noncapital assets other than
inventory or property held primarily for sale to customers
in the ordinary course of the corporation’s trade or
business.
• The section 291 adjustment to section 1250 property.

Instructions for Schedule D (Form 1120) (2025) Catalog Number 26358T
Department of the Treasury Internal Revenue Service www.irs.gov

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What’ New

Other Forms the Corporation May
Have To File

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• Gains or losses treated as ordinary gains or losses, if
the corporation is a trader in securities or commodities
and made a mark-to-market election under section 475(f).
• Election to defer a qualified section 1231 gain invested
in a QOF.
Use Form 4684, Casualties and Thefts, to report
involuntary conversions of property due to casualty or
theft.
Use Form 6781, Gains and Losses From Section 1256
Contracts and Straddles, to report gains and losses from
section 1256 contracts and straddles.

Use Form 8824 if the corporation exchanges qualifying
business or investment real property for real property of a
like kind. For exchanges of capital assets, include the gain
or (loss) from Form 8824, if any, on Schedule D (Form
1120), line 5 or line 13, as applicable.

Additional information. For more information, see the
instructions for the forms listed above. Also, see Pub. 544,
Sales and Other Dispositions of Assets, and Pub. 550,
Investment Income and Expenses.

Capital Assets

Each item of property the corporation held (whether or not
connected with its trade or business) is a capital asset
except the following. See section 1221(a).
• Stock in trade or other property included in inventory or
held mainly for sale to customers. However, see the Note,
later.
• Accounts or notes receivable acquired in the ordinary
course of the trade or business, for services rendered, or
from the sale of stock in trade or other property included in
inventory or held mainly for sale to customers.
• Depreciable or real property used in the trade or
business, even if it is fully depreciated.
• Certain copyrights; literary, musical, or artistic
compositions; letters or memoranda; or similar property.
However, see the Note, later.
• Certain patents, inventions, models or designs (whether
or not patented); secret formulas or processes; or similar
property.
• U.S. Government publications, including the
Congressional Record, that the corporation received from
the government, other than by purchase at the normal
sales price, or that the corporation got from another
taxpayer who had received it in a similar way, if the
corporation’s basis is determined by reference to the
previous owner’s basis.
• Certain commodities derivative financial instruments
held by a dealer in connection with its dealer activities.
• Certain identified hedging transactions entered into in
the normal course of the trade or business.
• Supplies regularly used in the trade or business.
Note: The corporation can elect to treat as capital assets
certain musical compositions or copyrights in musical
works it sold or exchanged. See section 1221(b)(3) and
Pub. 550 for details.
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For a corporation, capital losses are allowed in the current
tax year only to the extent of capital gains. A net capital
loss is carried back 3 years and forward up to 5 years as a
short-term capital loss. Carry back a capital loss to the
extent it doesn’t increase or produce a net operating loss
in the tax year to which it is carried. Foreign expropriation
capital losses cannot be carried back, but are carried
forward up to 10 years. There is no limit on the number of
tax years a RIC is allowed to carry forward a net capital
loss.
For more information on corporate capital losses, see
Capital Losses in Pub. 542, Corporations. For more
information on capital losses of RICs, see the Instructions
for Form 1120-RIC.

Short- or Long-Term Gain or Loss

Report short-term gains or losses in Part I. Report
long-term gains or losses in Part II. The holding period for
short-term capital gains and losses is generally 1 year or
less. The holding period for long-term capital gains and
losses is generally more than 1 year.
For more information about holding periods, see the
Instructions for Form 8949.

Items for Special Treatment

Note: For more information, see Pub. 544.

Special rules for determining basis. In general, the
basis of property is its cost. See section 1012 and the
related regulations. Special rules for determining basis are
provided in sections in subchapters C, K, O, and P of the
Code. These rules may apply to the:
• Receipt of certain distributions with respect to stock
(section 301 or 1059),
• Liquidation of another corporation (section 334),
• Transfer to another corporation (section 358),
• Transfer from a shareholder or reorganization (section
362),
• Bequest (section 1014),
• Contribution or gift (section 1015),
• Tax-free exchange (section 1031),
• Involuntary conversion (section 1033),
• Certain asset acquisitions (section 1060), or
• Wash sale of stock (section 1091).
Attach an explanation if the corporation uses a basis
other than actual cost of the property. See the instructions
for Form 8949, column (e).
See section 852(f) for the treatment of certain load
charges incurred in acquiring stock in a RIC with a
reinvestment right.
Gain or loss from digital asset transactions. If the
corporation sold, exchanged, or otherwise disposed of
digital assets in a taxable transaction, the corporation
must report income, gain, or loss from the transaction on
its federal income tax return, even if the corporation did
not receive a Form 1099-B, Form 1099-DA (or substitute
statement). See Form 1099-DA, Form 8949 and their
instructions for additional information regarding digital
assets.

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Use Form 8997, Initial and Annual Statement of
Qualified Opportunity Fund (QOF) Investments, if the
corporation held a qualified investment in a QOF at any
time during the year. See Form 8997 and its instructions.

Capital Losses

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Gain on distributions of appreciated property.
Generally, gain (but not loss) is recognized on a
nonliquidating distribution of appreciated property to the
extent that the property’s FMV exceeds its adjusted basis.
See section 311.
Exclusion of gain from DC Zone assets. If the
corporation sold or exchanged a qualified District of
Columbia Enterprise Zone (DC Zone) asset acquired after
1997 and before 2012, and held for more than 5 years, it
may exclude any qualified capital gain that the corporation
would otherwise include in income. The exclusion applies
to an interest in, or property of, certain businesses
operating in the District of Columbia.
DC Zone asset. A DC Zone asset is any of the
following.
• DC Zone business stock.
• DC Zone partnership interest.
• DC Zone business property.
Qualified capital gain. Qualified capital gain is any
gain recognized on the sale or exchange of a DC Zone
asset, but doesn’t include any of the following.
• Gain treated as ordinary income under section 1245.
• Section 1250 gain figured as if section 1250 applied to
all depreciation rather than the additional depreciation.
• Gain attributable to real property, or an intangible asset,
that isn’t an integral part of a DC Zone business.
• Gain from a related-party transaction. See Sales and
Exchanges Between Related Persons in chapter 2 of Pub.
544.
• Gain attributable to periods before 1998 and after 2016.
See section 1400B (as in effect before its repeal) for
more details on DC Zone assets and special rules.
How to report. If applicable, report the sale or
exchange on Form 8949, Part II, as the corporation
otherwise would without regard to the exclusion (with the
appropriate box checked). Enter “X” in column (f). Enter
the amount of the exclusion as a negative number (in
parentheses) in column (g). Complete all remaining
columns. See the Instructions for Form 8949 for details.

Report the sale or exchange of DC Zone business
property on Form 4797. See the Instructions for Form
4797 for details.
Exclusion of gain from qualified community assets.
If the corporation sold or exchanged a qualified
community asset acquired after 2001 and before 2010, it
may be able to exclude any qualified capital gain that the
corporation would otherwise include in income. The
exclusion applies to an interest in, or property of, certain
renewal community businesses.
Qualified community asset. A qualified community
asset is any of the following.
• Qualified community stock.
• Qualified community partnership interest.
• Qualified community business property.
Qualified capital gain. Qualified capital gain is any
gain recognized on the sale or exchange of a qualified
community asset, but does not include any of the
following.
• Gain treated as ordinary income under section 1245.
• Section 1250 gain figured as if section 1250 applied to
all depreciation rather than the additional depreciation.
• Gain attributable to real property, or an intangible asset,
that is not an integral part of a renewal community
business.
• Gain from a related-party transaction. See Sales and
Exchanges Between Related Persons in chapter 2 of Pub.
544.
• Gains from periods after December 31, 2014.
See section 1400F (as in effect before its repeal) for
more details and special rules.
How to report. If applicable, report the sale or
exchange on Form 8949, Part II, as the corporation
otherwise would without regard to the exclusion (with the
appropriate box checked). Enter “X” in column (f) and
enter the amount of the excluded gain as a negative
number (in parentheses) in column (g). Complete all
remaining columns. See the Instructions for Form 8949.
Report the sale or exchange of qualified community
business property on Form 4797. See the Instructions for
Form 4797 for details.
Gain on the constructive sale of certain appreciated
financial positions. Generally, if the corporation holds
an appreciated financial position in stock or certain other
interests, it may have to recognize gain (but not loss) if it
enters into a constructive sale (such as a “short sale
against the box”). See Pub. 550.
Gain from certain constructive ownership transactions. Gain in excess of the underlying net long-term
capital gain the corporation would have recognized if it
had held a financial asset directly during the term of a
derivative contract must be treated as ordinary income.
See section 1260. If any portion of the constructive
ownership transaction was open in any prior year, the
corporation may have to pay interest. See section 1260(b)
for details, including how to figure the interest. Include the
interest as an additional tax on Form 1120, Schedule J,
line 9z (or the applicable line for other income tax returns).
Gain on disposition of market discount bonds. In
general, if the corporation realizes a capital gain upon the
disposition of a market discount bond, the gain is
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Gain from installment sales. If the corporation sold
property at a gain and it will receive a payment in a tax
year after the year of sale, it must generally report the sale
on the installment method unless it elects not to. However,
the installment method may not be used to report sales of
stock or securities traded on an established securities
market.
Use Form 6252 to report the sale on the installment
method. Also use Form 6252 to report any payment
received during the tax year from a sale made in an earlier
year that was reported on the installment method. Enter
gain from the installment sales on Schedule D, line 4 or
line 12, as applicable. See the instructions for Form 6252.
To elect out of the installment method, report the full
amount of the gain on Form 8949 for the year of the sale
on a return filed by the due date (including extensions). If
the original return was filed on time without making the
election, the corporation may make the election on an
amended return filed no later than 6 months after the
original due date (excluding extensions). Write “Filed
pursuant to section 301.9100-2” at the top of the amended
return.

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recharacterized as interest income to the extent of
accrued market discount as of the date of disposition. See
sections 1276 through 1278 and Pub. 550 for more
information on market discount. See the Instructions for
Form 8949 for detailed information about how to report the
disposition of a market discount bond.
Gains on certain insurance property. Form 1120-L
filers with gains on property held on December 31, 1958,
and certain substituted property acquired after 1958,
should see section 818(c).

Gains and losses of foreign corporations from the
disposition of investment in U.S. real property.
Foreign corporations must report gains and losses from
the disposition of U.S. real property interests. For more
information, see section 897. Also, see section 897(c) for
the definition of a U.S. real property interest, section
897(k) for special rules for real estate investment trusts,
and section 897(l) for special rules relating to qualified
foreign pension funds.
Gain or loss on distribution of property in complete
liquidation. Generally, gain or loss is recognized on
property distributed in a complete liquidation. Treat the
property as if it had been sold at its FMV. An exception to
this rule applies for liquidations of certain subsidiaries.
See sections 336 and 337 for more information and other
exceptions to the general rules.
Gain or loss on certain asset transfers to a tax-exempt entity. A taxable corporation that transfers all or
substantially all of its assets to a tax-exempt entity or
converts from a taxable corporation to a tax-exempt entity
in a transaction other than a liquidation must generally
recognize gain or loss as if it had sold the assets
transferred at their FMV. For details and exceptions, see
Regulations section 1.337(d)-4.
Gain or loss on an option to buy or sell property. See
sections 1032 and 1234 for the rules that apply to a
purchaser or grantor of an option or a securities futures
contract (as defined in section 1234B). See Pub. 550 for
details.
Gain or loss from a short sale of property. Report the
gain or loss if the property used to close the short sale is
considered a capital asset in the hands of the taxpayer.
Report any short sale on Form 8949 in the year the sale
closes.
If a short sale closed in 2025 but the corporation did not
get a 2025 Form 1099-B, Form 1099-DA (or substitute
statement) for it because the corporation entered into it
before 2011, report it on Form 8949 in Part I with box C or
box I checked or Part II with box F or box L checked
(whichever applies). In column (a), enter (for example)
“100 sh. XYZ Co. —2010 short sale closed.” Fill in the
other columns according to their instructions. Report the
4

Gain on certain short-term federal, state, and municipal obligations (other than tax-exempt obligations).
If a short-term governmental obligation (other than a
tax-exempt obligation) that is a capital asset is acquired at
an acquisition discount, then, on any gain realized, a
portion is treated as ordinary income and any remaining
balance is treated as a short-term capital gain. See
section 1271.
Contingent payment debt instruments. If the
corporation sells a taxable contingent payment debt
instrument subject to the noncontingent bond method at a
gain, the gain is ordinary income (interest income), even if
the corporation holds the debt instrument as a capital
asset. If the corporation sells a taxable contingent
payment debt instrument subject to the noncontingent
bond method at a loss, its loss is an ordinary loss to the
extent of its prior original issue discount (OID) inclusions
on the debt instrument. If the debt instrument is a capital
asset, treat any loss that is more than the corporation’s
prior OID inclusions as a capital loss. See Regulations
section 1.1275-4(b) and Pub. 1212, Guide to Original
Issue Discount (OID), for more information on contingent
payment debt instruments subject to the noncontingent
bond method.
See the Instructions for Form 8949 for information on
how to report the gain or loss.
At-risk limitations (section 465). If the corporation sold
or exchanged a capital asset used in an activity to which
the at-risk rules apply, combine the gain or loss on the
sale or exchange with the profit or loss from the activity. If
the result is a net loss, complete Form 6198, At-Risk
Limitations. Report any gain from the capital asset on
Form 8949, Schedule D, and Form 6198.
Loss from a sale or exchange between the corporation and a related person. Except for distributions in
complete liquidation of a corporation, no loss is allowed
from the sale or exchange of property between the
corporation and certain related persons. See section 267.
Loss from a wash sale. A wash sale occurs if the
corporation acquires (by purchase or exchange), or has a
contract or option to acquire, substantially identical stock
or securities, or transactions involving digital assets that
are also stock or securities for tax purposes (tokenized
securities) within 30 days before or after the date of a sale
or exchange that results in a loss. The corporation cannot
deduct a loss from a wash sale of stock or securities
(including contracts or options to acquire or sell stock or
securities) unless the corporation is a dealer in stock or
securities and the loss was sustained in a transaction
made in the ordinary course of the corporation’s trade or
business. For more information on wash sales, see
section 1091 and Pub. 550.
The wash sale rules don’t apply to a redemption of
shares in a floating-NAV (net asset value) money market
fund.
Report the transaction as the corporation otherwise
would on Form 8949, Part I or II (depending on how long

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Gains and losses from passive activities. A closely
held or personal service corporation that has a gain or
loss that relates to a passive activity (section 469) may be
required to complete Form 8810, Corporate Passive
Activity Loss and Credit Limitations, before completing
Form 8949 and Schedule D. An applicable loss may be
limited under the passive activity rules. See Form 8810
and the Instructions for Form 8810.

short sale the same way if the corporation received a 2025
Form 1099-B, Form 1099-DA (or substitute statement)
that doesn’t show the proceeds (sales price).

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fund on Form 8949, Part I, with box C or box I checked.
Enter the name of each fund followed by “(NAV)” in
column (a). Enter the net gain or (loss) in column (h).
Leave all other columns blank. See the Instructions for
Form 8949.

Loss from securities that are capital assets that become worthless during the year. Except for securities
held by a bank, treat the loss as a capital loss as of the
last day of the tax year. See section 582 for the rules on
the treatment of securities held by a bank.

Deferral of gain invested in Qualified Opportunity
Fund (QOF). If the corporation has an eligible gain
(defined below), the corporation can invest that gain in a
QOF and elect to defer part or all of the gain that it would
otherwise include in income. The gain is deferred until the
tax year that includes the date the corporation disposes of
the investment in the QOF or December 31, 2026,
whichever is earlier. If the corporation makes the election,
only include gain to the extent, if any, the amount of
realized gain is more than the aggregate amount invested
in a QOF during the 180-day period beginning on the date
the gain was realized. The corporation may also be able to
permanently exclude the gain from the sale or exchange
of any investment in a QOF if the investment is held for at
least 10 years. See section 1400Z-2.
QOF. A QOF is any investment vehicle that is organized
as either a corporation or partnership for the purpose of
investing in eligible property that is located in a Qualified
Opportunity Zone.
Eligible gain. Gain that is eligible to be deferred if it is
invested in a QOF includes any amount treated as a
capital gain for federal income tax purposes.
How to report. Report the eligible gain as the
corporation normally would on Form 8949 and
Schedule D. See the Instructions for Form 8949 for details
on how to report the deferral. The corporation will also
need to attach Form 8997 to its tax return annually until it
disposes of the QOF investment. For more information,
see Form 8997 and its instructions.

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Losses limited after an ownership change or acquisition. If the corporation has undergone an “ownership
change” as defined in section 382(g), section 383 may
limit the amount of capital gains that may be offset by
prechange capital losses. In addition, section 382(h) may
in some cases limit capital losses recognized after an
ownership change when the loss accrued before the
ownership change. Also, if a corporation acquires control
of another corporation (or acquires its assets in a
reorganization), section 384 may limit the amount of
recognized built-in capital gains that may be offset by
preacquisition capital losses.
Loss from the sale or exchange of capital assets of
an insurance company taxable under section 831.
Capital losses of a casualty insurance company are
deductible to the extent that the assets were sold to meet
abnormal insurance losses or to provide for the payment
of dividend and similar distributions to policyholders. See
section 834(c)(6).
Gains and losses from partnerships, estates, or
trusts. Report the corporation’s share of capital gains
and losses from investments in partnerships, estates, or
trusts on the appropriate Part of Form 8949. Report a net
short-term capital gain (loss) on Part I with box C or box I
checked. Report a net long-term capital gain (loss) on Part
II with box F or box L checked. See the Instructions for
Form 8949.
Undistributed long-term gains from a regulated investment company (RIC) or real estate investment
trust (REIT). Report the corporation’s share of long-term
gains from Form 2439, Notice to Shareholder of
Undistributed Long-Term Capital Gains, on Form 8949,
Part II (with box F or box L checked). Enter “From Form
2439” in column (a). Enter the gain in column (h). Leave all
other columns blank. See the Instructions for Form 8949.
Amounts from Form 2438. Enter any net short-term
capital gain from line 4 of Form 2438, Undistributed
Capital Gains Tax Return, on Form 8949, Part I, with box C
or box I checked. Identify the gain as “Net short-term
capital gain from Form 2438 line 4” in column (a). Enter
the amount of the gain in column (h). Leave all other
columns blank.
Enter the amount from line 12 of Form 2438 on Form
8949, Part II, with box F or box L checked. Identify the gain
as “Undistributed capital gains not designated (from Form
2438)” in column (a). Enter the amount of the gain in
column (h). Leave all other columns blank.
Net Asset Value (NAV) method for money market
funds. Report capital gain or loss determined under the
NAV method with respect to shares in a money market

Specific Instructions
Rounding off to whole dollars. The corporation may
enter decimal points and cents when completing its return.
However, the corporation should round off cents to whole
dollars on its return, forms, and schedules to make
completing its return easier. The corporation must either
round off all amounts on its return to whole dollars, or use
cents for all amounts. To round, drop amounts under 50
cents and increase amounts from 50 to 99 cents to the
next dollar. For example, $8.40 rounds to $8 and $8.50
rounds to $9.
If two or more amounts must be added to figure the
amount to enter on a line, include cents when adding the
amounts and round off only the total.
Disposal of QOF investment. If the corporation
disposed of any investment in a QOF during the tax year,
check the box on the top of Schedule D and see the
Instructions for Form 8949 for additional reporting
requirements.

Parts I and II
Lines 1a and 8a—Transactions not reported on Form
8949. The corporation can report on line 1a (for
short-term transactions) or line 8a (for long-term

5

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the corporation owned the stock or securities). Check the
appropriate box. Enter “W” in column (f). Enter the
nondeductible loss as a positive number in column (g).
Complete all remaining columns. See the Instructions for
Form 8949.

transactions) the aggregate totals from any transactions
(other than sales of collectibles) for which:
• The corporation received a Form 1099-B (or substitute
statement) that shows basis was reported to the IRS and
does not show any adjustments in box 1f or box 1g;
• The corporation received a Form 1099-DA (or substitute
statement) that shows basis was reported to the IRS and
does not show any adjustments in box 1h or box 1i;
• The Ordinary checkbox in box 2 of Form 1099-B or
box 6 of Form 1099-DA (or substitute statement) is not
checked;
• The QOF checkbox in box 3 of Form 1099-B or box 3b
of Form 1099-DA (or substitute statement) is not checked;
and
• The corporation does not need to make any
adjustments to the basis or type of gain or loss reported
on Form 1099-B or Form 1099-DA (or substitute
statement), or to its gain or loss.
See How To Complete Form 8949, Columns (f) and (g) in
the Instructions for Form 8949 for details about possible
adjustments to the corporation’s gain or loss.
If the corporation chooses to report these transactions
on lines 1a and 8a, do not report them on Form 8949.
Also, the corporation does not need to attach a statement
to explain the entries on lines 1a and 8a.
Figure gain or loss on each line. Subtract the cost or
other basis in column (e) from the proceeds (sales price)
in column (d). Enter the gain or loss in column (h). Enter
negative amounts in parentheses.
Example 1—Basis reported to the IRS. The
corporation received a Form 1099-B or Form 1099-DA
reporting the sale of stock or digital asset held for 3 years,
showing proceeds (in box 1d on Form 1099-B or box 1f on
Form 1099-DA) of $6,000 and cost or other basis (in
box 1e on Form 1099-B or box 1g on Form 1099-DA) of
$2,000. Box 12 on Form 1099-B or box 2 on Form
1099-DA is checked, meaning that basis was reported to
the IRS. The corporation does not need to make any
adjustments to the amounts reported on Form 1099-B or
Form 1099-DA or enter any codes. This was the
corporation’s only 2025 transaction. Instead of reporting
this transaction on Form 8949, the corporation can enter
$6,000 on Schedule D, line 8a, column (d); $2,000 in
column (e); and $4,000 ($6,000 - $2,000) in column (h).
If the corporation had a second transaction that was the
same except that the proceeds were $5,000 and the basis
was $3,000, combine the two transactions. Enter $11,000

6

($6,000 + $5,000) on Schedule D, line 8a, column (d);
$5,000 ($2,000 + $3,000) in column (e); and $6,000
($11,000 - $5,000) in column (h).
Example 2—Basis not reported to the IRS. The
corporation received a Form 1099-B or Form 1099-DA
showing proceeds (in box 1d on Form 1099-B or box 1f on
Form 1099-DA) of $6,000 and cost or other basis (in
box 1e on Form 1099-B or box 1g on Form 1099-DA) of
$2,000. Box 12 on Form 1099-B or box 2 on Form
1099-DA is not checked, meaning that basis was not
reported to the IRS. Do not report this transaction on
line 1a or line 8a. Instead, report the transaction on Form
8949. Complete all necessary pages of Form 8949 before
completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D.
Example 3—Adjustment. The corporation received a
Form 1099-B or Form 1099-DA showing proceeds (in
box 1d on Form 1099-B or box 1f on Form 1099-DA) of
$6,000 and cost or other basis (in box 1e on Form 1099-B
or box 1g on Form 1099-DA) of $2,000. Box 12 on Form
1099-B or box 2 on Form 1099-DA is checked, meaning
that basis was reported to the IRS. However, the basis
shown in box 1e on Form 1099-B or box 1g on Form
1099-DA is incorrect. Do not report this transaction on
line 1a or line 8a. Instead, report the transaction on Form
8949. See the instructions for Form 8949, columns (f), (g),
and (h). Complete all necessary pages of Form 8949
before completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D.
Lines 1b, 2, 3, 8b, 9, and 10—Transactions reported
on Form 8949. Complete Form 8949 before completing
Schedule D, lines 1b, 2, 3, 8b, 9, and 10. Enter on
Schedule D, lines 1b, 2, and 3, respectively, the short-term
totals from all Forms 8949, Part I, line 2, with box A, B, C,
G, H, or I, respectively, checked. Enter on Schedule D,
lines 8b, 9, and 10, respectively, the long-term totals from
all Forms 8949, Part II, line 2, with box D, E, F, J, K, or L,
respectively, checked.
Line 6. Enter any unused capital loss carryover. Attach a
statement showing how the carryover was computed.
Line 14. Enter the total capital gain distributions paid by a
RIC or REIT during the year, regardless of how long the
corporation owned stock in the RIC or REIT.
Also enter any amount received from a RIC or REIT that
qualifies as a distribution in complete liquidation under
section 332(b) and is designated by the RIC or REIT as a
capital gain distribution. See section 332(c).

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