Schedule D (Form 1040)
I need to file a schedule D for the sale of some personal assets that I made during 2023. Where do I find the schedule D form on the FreeTaxUsa website?
Comments
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Hi David1, keep in mind that if you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. On the other hand, the IRS doesn't allow you to claim a loss on the sale of personal items.
(see Sale of Personal Items on pg 36 of IRS Publication 525)
If you have a gain to report, you can enter information about the asset sale by using the following menu path:
Income > Common Income > Stocks or Investments Sold (1099-B)
You can enter each personal asset sale one at a time. Just answer the questions as they apply to each asset, and Schedule D will be generated based on your entries.
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Thanks for your response!
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So does the above apply to generating a Schedule D if you invested in a property to flip, but the sale fail through. Meaning your lost your investment with no income or gain received—how do I generate a Schedule D if it was a lost?
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Hello Sraadams2,
Just because a sale fell through, does not constitute a loss on your tax return. So, no I don't think this applies to your situation. You can still own the property and can sell it. However, when you do sell it, you can include the additional selling costs from the failed sale to your total selling cost to reduce your capital gain.
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Thanks for your response—but I guess I was not clear. I was looking to make a real estate deal in another state—but the sale didn't go through and I am out $75K can I recoup any of this money on my taxes. I tried legally to contact the person handling the sale in California but to no avail.
I'm not sure if this counts as earnest money or not. Should I upgrade my tax package with Pro-support?
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Hi sraadams2,
Just to clarify, do you mean you spent $75,000 in a real estate deal that did not go through with the purchase of the property, and you're out the money? Do you have any language in your contract or buyer's agreement that stipulated this was earnest money or a deposit?
Was this to be a personal residence for you? If so, it's a non-deductible loss as Matthew suggested above.
Was this going to be an investment for you and therefore considered a capital asset? If a capital asset, forfeiture of a deposit is treated as a capital loss to you. If your intention was to rent it out (as in trade or business/passive income) it would be considered a non-capital asset. If it is a noncapital asset, forfeiture of a deposit is treated as an ordinary expense to you.
If an investment real estate property, your forfeiture of earnest money or deposit is a capital loss to you, the prospecitve buyer.
Your individual facts and circumstances matter to determine how you might claim the loss of this money.
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I don't see the Stocks or Investments Sold option under Income > Common Income. Usually I'm prompted to enter stock transactions along with interest and dividends, but it didn't ask me this year. How do I do this? Thanks
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He Edmarq123,
You will find that option under Interest and Investments. We consolidated several types of income into one area.
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Thanks. I hadn't realized I need to manually add the investment rather than being prompted for it.
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still haven’t answered the question… WHERE IS SCHEDULE D?
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You don't directly enter anything on Schedule D. It gets generated and populated when you enter income information from the sales of assets (1099-B, 1099-S, 1099-K).
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See the Interest and Investment Income section. Enter your stock sales to generate a Schedule D.
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what if I sold stock at a loss, where would I enter since I don't see a schedule D
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You enter the information from your 1099-B under Investments and Savings → Stock Sales. This will generate a Schedule D.
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A couple of weeks ago I got on IRS notice on my 2024 filing. I sold a mutual fund 3 times during the year and some of the sharse were short term, some were long-term covered, and some were old un-covered. I believe I entered everything correctly last year off the 1099-B provided by Fidelity, but it clearly didn't get calculated or submitted to IRS correctly. I hadn't paid much attention last year (my fault of course) but when I went back to look at last year's submitted return there was no Sched D. IRS notice basically said with no cost-basis for those un-covered shares I owed a lot more. Would be a lot easier to sort out with an actual Sched D to look at from last year.
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And it appears the net proceeds and cost basis on the short term and covered long term got switched. So I'd really like to see the Sched D supposedly created for 2024.
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Hi trdcjeff,
Schedule D (Form 1040) isn't required if your only capital gains are from distributions reported directly on Form 1040 (via 1099-DIV, Box 2a), you have no capital losses, and you have no special gains (e.g., collectibles, unrecaptured section 1250 gain).
I recommend that you amend your 2024 return to make any correction. Check your IRS notice. You may need to send the 1040X directly to the address on the notice if you don't agree with the IRS.
Contact FreeTaxUSA support when you are signed into your 2024 return and a support specialist can help you.0
