D - Capital Gains/Losses for Capital Assets

Tax Schedule D on Form 1040 is used by U.S. taxpayers to report capital gains and losses from the sale or exchange of capital assets. This includes transactions such as the sale of stocks, bonds, real estate, and other property. Schedule D is necessary for calculating the net capital gain or loss for the tax year, which then affects the taxpayer's income tax liability. It requires details of each capital transaction, including dates, amounts, gains, and losses. The final net figure from Schedule D is transferred to the taxpayer's Form 1040, influencing their overall taxable income.