All capital gains (long-term and short-term) are reported on Form 8949 Sales and Other Dispositions of Capital Assets, and Schedule D Capital Gains and Losses is used to calculate a net capital gain or loss. If there is a net gain that is all short-term, then the short-term gain will be taxed at the taxpayer’s regular income tax rate. However, if there are long-term losses, these are allowed to offset the short-term gains.

Capital gains and losses are reported on Form 1099-B Proceeds From Broker and Barter Exchange Transactions in the TaxAct program and the program transfers the info to Form 8949 and Schedule D. If you need help reporting Form 1099-B, go to our Form 1099-B – Entering Capital Gains and Losses in Program FAQ.

The TaxAct program uses the dates entered for the purchase and sale of each stock transaction to determine if the gain/loss is either short or long term, and will then transfer that information appropriately to the correct section of the Schedule D. If the time between the purchase and sale is one year or less, the information will transfer to Part I of Schedule D. If the time between purchase and sale is over one year, the information will transfer to Part II of Schedule D.

Related Links

• Capital Gains Reports – Long-Term and Short-Term Reports
• Publication 550 Investment Income and Expenses (Including Capital Gains and Losses)
• Forms 8949 and 1099-B – Entering Stock Transactions in Program

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.