Capital Gain or (Loss)

If you sold a capital asset, such as a stock, bond, or digital asset, you must complete and attach Form 8949 and Schedule D.

Exception 1.

You don’t have to file Form 8949 or Schedule D if you aren’t deferring any capital gain by investing in a qualified opportunity fund and both of the following apply.

You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements); and

None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).

Exception 2.

You must file Schedule D but generally don’t have to file Form 8949 if Exception 1 doesn’t apply, you aren’t deferring any capital gain by investing in a qualified opportunity fund or terminating deferral from an investment in a qualified opportunity fund, and your only capital gains and losses are:

Capital gain distributions;

A capital loss carryover from 2024;

A gain from Form 2439 or 6252 or Part I of Form 4797;

A gain or loss from Form 4684, 6781, or 8824;

A gain or loss from a partnership, S corporation, estate, or trust; or

Gains and losses from transactions for which you received a Form 1099-B or 1099-DA (or substitute statement) that shows basis was reported to the IRS, the QOF box in box 3 of Form 1099-B or box 3b of Form 1099-DA isn’t checked, and you don’t need to make any adjustments in column (g) of Form 8949 or enter any codes in column (f) of Form 8949.

If Exception 1 applies, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 7a and check the box “Schedule D not required” on line 7b. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 7a only the amount that belongs to you. Include a statement showing the full amount you received and the amount you received as a nominee. See the Schedule B instructions for filing requirements for Forms 1099-DIV and 1096.

If you don’t have to file Schedule D, use the Qualified Dividends and Capital Gain Tax Worksheet in the line 16 instructions to figure your tax.