Schedule D

DEFINITION of 'Schedule D'

A U.S. income tax form used by taxpayers to report their realized capital gains or losses. Investors are required to report their capital gains (and losses) from the sales of assets, which result in different cash values being received for them than what was originally paid, in order to affix some amount of taxation to the income and wealth that is generated through investment activities.

BREAKING DOWN 'Schedule D'

Schedule D is a complicated form that has confounded investors for years. However, changes in legislation came into effect with the Jobs And Growth Tax Relief Reconciliation Act of 2003, which made qualifying dividends subject to capital gains tax instead of normal income tax, the form and its applicable regulations have become moderately less complex.

For more information on this income tax form, read When would I have to fill out a Schedule D IRS form?

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RELATED FAQS
  1. When would I have to fill out a Schedule D IRS form?

    In general, taxpayers who have short-term capital gains, short-term capital losses, long-term capital gains or long-term ... Read Answer >>
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    Are capital gains calculated annually or on every trade? How can selling a stock at a loss save me money on taxes? Also, ... Read Answer >>
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  4. Is there a difference between capital gains and dividend income?

    Selling something for a profits leads to capital gains. A payment made by a corporations to stockholders is a dividend. Both ... Read Answer >>
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