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Department of the Treasury
Internal Revenue Service
2023

Instructions for Schedule D

(Form 1120)

Capital Gains and Losses

Section references are to the Internal Revenue Code • Elections to defer capital gain invested in a Qualified
unless otherwise noted. Opportunity Fund (QOF).
• Dispositions of interests in QOFs.
Future Developments Complete all applicable lines of Form 8949 before
For the latest information about developments to completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form
Schedule D (Form 1120) and its instructions, such as 1120). See the Instructions for Form 8949 for special
legislation enacted after they were published, go to provisions and exceptions to completing Form 8949 for
IRS.gov/Form1120. certain corporations. Also, see the instructions for lines 1a
and 8a, later, for more information about when to use
Form 8949.
General Instructions
Use Form 4797 to report the following.
Purpose of Schedule • The sale or exchange of:
Use Schedule D (Form 1120) to report the following. 1. Real property used in a trade or business;
• The overall gain or loss from transactions reported on 2. Depreciable and amortizable tangible property used
Form 8949, Sales and Other Dispositions of Capital in a trade or business (however, see Disposition of
Assets. Depreciable Property Not Used in Trade or Business in
• Certain transactions the corporation does not have to the Instructions for Form 4797);
report on Form 8949.
3. Oil, gas, geothermal, or other mineral property; and
• Gain from Form 6252, Installment Sale Income, or from
Part I of Form 4797, Sales of Business Property. 4. Section 126 property.
• Gain or loss from Form 8824, Like-Kind Exchanges. • The involuntary conversion (other than from casualty or
• Unused capital loss carryover. theft) of property used in your trade or business and
• Capital gain distributions not reported directly on Form capital assets held more than 1 year in connection with a
1120, line 8 (or effectively connected capital gain trade or business or a transaction entered into for profit
distributions not reported directly on Form 1120-F, (however, see Disposition of Depreciable Property Not
1120-C, 1120-H, or all other related forms). Used in Trade or Business in the Instructions for Form
4797).
Who Must File • The disposition of noncapital assets other than
Complete and attach Schedule D (Form 1120) to Form inventory or property held primarily for sale to customers
1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC, in the ordinary course of the corporation's trade or
1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, business.
1120-RIC, 1120-SF, or certain Forms 990-T. • The section 291 adjustment to section 1250 property.
• Gains or losses treated as ordinary gains or losses, if
Other Forms the Corporation May you are a trader in securities or commodities and made a
mark-to-market election under section 475(f).
Have To File
• Election to defer a qualified section 1231 gain invested
Use Form 8949 to report the following. in a QOF.
• Sales or exchanges of capital assets (defined later) not
reported on another form or schedule. Use Form 4684, to report involuntary conversions of
• Nonbusiness bad debts. property due to casualty or theft.
• Undistributed long-term capital gains from Form 2439. Use Form 6781, to report gains and losses from section
• Worthlessness of a security. 1256 contracts and straddles.
• The corporation's share of gain or loss from a
partnership, S corporation, estate, or trust. Use Form 8824 if the corporation exchanges qualifying
• Sale of stock of a specified 10%-owned foreign business or investment real property for real property of a
corporation, adjusted for the dividends-received like kind. For exchanges of capital assets, include the gain
deduction under section 245A, but only if the sale would or (loss) from Form 8824, if any, on Schedule D (Form
otherwise generate a loss. 1120), line 5 or line 13, as applicable.
• Gain or loss on the transfer by a nonresident alien
individual or foreign corporation of an interest in a Use Form 8997, Initial and Annual Statement of
partnership that is engaged in a U.S. trade or business. Qualified Opportunity Fund (QOF) Investments, if you held
a qualified investment in a QOF at any time during the
year. See Form 8997 and its instructions.

Oct 30, 2023 Cat. No. 26358T

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Additional information. For more information, see the less. The holding period for long-term capital gains and
instructions for the forms listed above. Also, see Pub. 544, losses is generally more than 1 year.
Sales and Other Dispositions of Assets, and Pub. 550,
For more information about holding periods, see the
Investment Income and Expenses.
Instructions for Form 8949.
Capital Assets
Items for Special Treatment
Each item of property the corporation held (whether or not
connected with its trade or business) is a capital asset Note. For more information, see Pub. 544.
except the following. See section 1221(a). Special rules for determining basis. In general, the
• Stock in trade or other property included in inventory or basis of property is its cost. See section 1012 and the
held mainly for sale to customers. However, see the Note, related regulations. Special rules for determining basis are
later. provided in sections in subchapters C, K, O, and P of the
• Accounts or notes receivable acquired in the ordinary Code. These rules may apply to the:
course of the trade or business for services rendered or • Receipt of certain distributions with respect to stock
from the sale of stock in trade or other property included in (section 301 or 1059),
inventory or held mainly for sale to customers. • Liquidation of another corporation (section 334),
• Depreciable or real property used in the trade or • Transfer to another corporation (section 358),
business, even if it is fully depreciated. • Transfer from a shareholder or reorganization (section
• Certain copyrights; literary, musical, or artistic 362),
compositions; letters or memoranda; or similar property. • Bequest (section 1014),
However, see the Note, later. • Contribution or gift (section 1015),
• Certain patents, inventions, models or designs (whether • Tax-free exchange (section 1031),
or not patented); secret formulas or processes; or similar • Involuntary conversion (section 1033),
property. • Certain asset acquisitions (section 1060), or
• U.S. Government publications, including the • Wash sale of stock (section 1091).
Congressional Record, that the corporation received from Attach an explanation if the corporation uses a basis
the government, other than by purchase at the normal other than actual cost of the property. See the instructions
sales price, or that the corporation got from another for Form 8949, column (e).
taxpayer who had received it in a similar way, if the
corporation's basis is determined by reference to the A RIC's or REIT's basis in an asset it held on January 1,
previous owner's basis. 2001, for which it made an election to recognize any gain
• Certain commodities derivative financial instruments under section 311 of the Taxpayer Relief Act of 1997, is
held by a dealer in connection with its dealer activities. the asset's closing market price or fair market value
• Certain identified hedging transactions entered into in (FMV), whichever applies, on the date of the deemed sale
the normal course of the trade or business. and reacquisition, whether the deemed sale resulted in a
• Supplies regularly used in the trade or business. gain or unallowed loss.
See section 852(f) for the treatment of certain load
Note. The corporation can elect to treat as capital assets charges incurred in acquiring stock in a RIC with a
certain musical compositions or copyrights in musical reinvestment right.
works it sold or exchanged. See section 1221(b)(3) and
Pub. 550 for details. Gain from installment sales. If the corporation sold
property at a gain and it will receive a payment in a tax
Capital Losses year after the year of sale, it must generally report the sale
For a corporation, capital losses are allowed in the current on the installment method unless it elects not to. However,
tax year only to the extent of capital gains. A net capital the installment method may not be used to report sales of
loss is carried back 3 years and forward up to 5 years as a stock or securities traded on an established securities
short-term capital loss. Carry back a capital loss to the market.
extent it doesn’t increase or produce a net operating loss Use Form 6252 to report the sale on the installment
in the tax year to which it is carried. Foreign expropriation method. Also use Form 6252 to report any payment
capital losses cannot be carried back, but are carried received during the tax year from a sale made in an earlier
forward up to 10 years. A net capital loss of a regulated year that was reported on the installment method. Enter
investment company (RIC) incurred in tax years beginning gain from the installment sales on Schedule D, line 4 or
before December 23, 2010, is carried forward up to 8 line 12, as applicable. See the instructions for Form 6252.
years. There is no limit on the number of tax years a RIC is To elect out of the installment method, report the full
allowed to carry forward a net capital loss incurred in tax amount of the gain on Form 8949 for the year of the sale
years beginning after December 22, 2010. on a return filed by the due date (including extensions). If
For more information about corporate capital losses, the original return was filed on time without making the
see Capital Losses in Pub. 542, Corporations. election, the corporation may make the election on an
amended return filed no later than 6 months after the
Short- or Long-Term Gain or Loss original due date (excluding extensions). Write “Filed
Report short-term gains or losses in Part I. Report pursuant to section 301.9100-2” at the top of the amended
long-term gains or losses in Part II. The holding period for return.
short-term capital gains and losses is generally 1 year or

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Gain on distributions of appreciated property. • Gain attributable to real property, or an intangible asset,
Generally, gain (but not loss) is recognized on a that is not an integral part of a renewal community
nonliquidating distribution of appreciated property to the business.
extent that the property's FMV exceeds its adjusted basis. • Gain from a related-party transaction. See Sales and
See section 311. Exchanges Between Related Persons in chapter 2 of Pub.
544.
Exclusion of gain from DC Zone assets. If the • Gains from periods after December 31, 2014.
corporation sold or exchanged a qualified District of
See section 1400F (as in effect before its repeal) for
Columbia Enterprise Zone (DC Zone) asset acquired after
more details and special rules.
1997 and before 2012, and held for more than 5 years, it
may exclude any qualified capital gain that the corporation How to report. If applicable, report the sale or
would otherwise include in income. The exclusion applies exchange on Form 8949, Part II, as the corporation
to an interest in, or property of, certain businesses otherwise would without regard to the exclusion (with the
operating in the District of Columbia. appropriate box checked). Enter “X” in column (f) and
enter the amount of the excluded gain as a negative
DC Zone asset. A DC Zone asset is any of the
number (in parentheses) in column (g). Complete all
following.
remaining columns. See the Instructions for Form 8949.
• DC Zone business stock.
• DC Zone partnership interest. Report the sale or exchange of qualified community
• DC Zone business property. business property on Form 4797. See the Instructions for
Qualified capital gain. Qualified capital gain is any Form 4797 for details.
gain recognized on the sale or exchange of a DC Zone Gain on the constructive sale of certain appreciated
asset, but doesn’t include any of the following. financial positions. Generally, if the corporation holds
• Gain treated as ordinary income under section 1245. an appreciated financial position in stock or certain other
• Section 1250 gain figured as if section 1250 applied to interests, it may have to recognize gain (but not loss) if it
all depreciation rather than the additional depreciation. enters into a constructive sale (such as a “short sale
• Gain attributable to real property, or an intangible asset, against the box”). See Pub. 550.
that isn’t an integral part of a DC Zone business.
• Gain from a related-party transaction. See Sales and Gain from certain constructive ownership transac-
Exchanges Between Related Persons in chapter 2 of Pub. tions. Gain in excess of the underlying net long-term
544. capital gain the corporation would have recognized if it
• Gain attributable to periods before 1998 and after 2016. had held a financial asset directly during the term of a
derivative contract must be treated as ordinary income.
See section 1400B (as in effect before its repeal) for See section 1260. If any portion of the constructive
more details on DC Zone assets and special rules. ownership transaction was open in any prior year, the
How to report. If applicable, report the sale or corporation may have to pay interest. See section 1260(b)
exchange on Form 8949, Part II, as the corporation for details, including how to figure the interest. Include the
otherwise would without regard to the exclusion (with the interest as an additional tax on Form 1120, Schedule J,
appropriate box checked). Enter “X” in column (f). Enter line 9g (or the applicable line for other income tax returns).
the amount of the exclusion as a negative number (in
parentheses) in column (g). Complete all remaining Gain on disposition of market discount bonds. In
columns. See the Instructions for Form 8949 for details. general, if the corporation realizes a capital gain upon the
disposition of a market discount bond, the gain is
Report the sale or exchange of DC Zone business
recharacterized as interest income to the extent of
property on Form 4797. See the Instructions for Form
accrued market discount as of the date of disposition. See
4797 for details.
sections 1276 through 1278 and Pub. 550 for more
Exclusion of gain from qualified community assets. information on market discount. See the Instructions for
If the corporation sold or exchanged a qualified Form 8949 for detailed information about how to report the
community asset acquired after 2001 and before 2010, it disposition of a market discount bond.
may be able to exclude any qualified capital gain that the
Gains on certain insurance property. Form 1120-L
corporation would otherwise include in income. The
filers with gains on property held on December 31, 1958,
exclusion applies to an interest in, or property of, certain
and certain substituted property acquired after 1958,
renewal community businesses.
should see section 818(c).
Qualified community asset. A qualified community
asset is any of the following. Gains and losses from passive activities. A closely
• Qualified community stock. held or personal service corporation that has a gain or
• Qualified community partnership interest. loss that relates to a passive activity (section 469) may be
• Qualified community business property. required to complete Form 8810, before completing Form
Qualified capital gain. Qualified capital gain is any 8949 and Schedule D. An applicable loss may be limited
gain recognized on the sale or exchange of a qualified under the passive activity rules. See Form 8810 and the
community asset, but does not include any of the Instructions for Form 8810.
following. Gains and losses of foreign corporations from the
• Gain treated as ordinary income under section 1245. disposition of investment in U.S. real property.
• Section 1250 gain figured as if section 1250 applied to Foreign corporations must report gains and losses from
all depreciation rather than the additional depreciation. the disposition of U.S. real property interests. For more

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information, see section 897. Also, see section 897(c) for section 1.1275-4(b) and Pub. 1212, Guide to Original
the definition of a U.S. real property interest, section Issue Discount (OID), for more information on contingent
897(k) for special rules for real estate investment trusts, payment debt instruments subject to the noncontingent
and section 897(l) for special rules relating to qualified bond method.
foreign pension funds. See the Instructions for Form 8949 for information on
Gain or loss on distribution of property in complete how to report the gain or loss.
liquidation. Generally, gain or loss is recognized on At-risk limitations (section 465). If the corporation sold
property distributed in a complete liquidation. Treat the or exchanged a capital asset used in an activity to which
property as if it had been sold at its FMV. An exception to the at-risk rules apply, combine the gain or loss on the
this rule applies for liquidations of certain subsidiaries. sale or exchange with the profit or loss from the activity. If
See sections 336 and 337 for more information and other the result is a net loss, complete Form 6198, At-Risk
exceptions to the general rules. Limitations. Report any gain from the capital asset on
Gain or loss on certain asset transfers to a tax-ex- Form 8949, Schedule D, and Form 6198.
empt entity. A taxable corporation that transfers all or Loss from a sale or exchange between the corpora-
substantially all of its assets to a tax-exempt entity or tion and a related person. Except for distributions in
converts from a taxable corporation to a tax-exempt entity complete liquidation of a corporation, no loss is allowed
in a transaction other than a liquidation must generally from the sale or exchange of property between the
recognize gain or loss as if it had sold the assets corporation and certain related persons. See section 267.
transferred at their FMV. For details and exceptions, see
Regulations section 1.337(d)-4. Loss from a wash sale. A wash sale occurs if the
corporation acquires (by purchase or exchange), or has a
Gain or loss on an option to buy or sell property. See contract or option to acquire, substantially identical stock
sections 1032 and 1234 for the rules that apply to a or securities within 30 days before or after the date of a
purchaser or grantor of an option or a securities futures sale or exchange that results in a loss. The corporation
contract (as defined in section 1234B). See Pub. 550 for cannot deduct a loss from a wash sale of stock or
details. securities (including contracts or options to acquire or sell
Gain or loss from a short sale of property. Report the stock or securities) unless the corporation is a dealer in
gain or loss if the property used to close the short sale is stock or securities and the loss was sustained in a
considered a capital asset in the hands of the taxpayer. transaction made in the ordinary course of the
Report any short sale on Form 8949 in the year the sale corporation's trade or business. For more information on
closes. wash sales, see section 1091 and Pub. 550.
If a short sale closed in 2023 but you did not get a 2023 The wash sale rules don't apply to a redemption of
Form 1099-B (or substitute statement) for it because you shares in a floating-NAV (net asset value) money market
entered into it before 2011, report it on Form 8949 in Part I fund.
with box C checked or Part II with box F checked Report the transaction as the corporation otherwise
(whichever applies). In column (a), enter (for example) would on Form 8949, Part I or II (depending on how long
“100 sh. XYZ Co. —2010 short sale closed.” Fill in the the corporation owned the stock or securities). Check the
other columns according to their instructions. Report the appropriate box. Enter “W” in column (f). Enter the
short sale the same way if you received a 2023 Form nondeductible loss as a positive number in column (g).
1099-B (or substitute statement) that doesn’t show the Complete all remaining columns. See the Instructions for
proceeds (sales price). Form 8949.
Gain on certain short-term federal, state, and munici- Loss from securities that are capital assets that be-
pal obligations (other than tax-exempt obligations). come worthless during the year. Except for securities
If a short-term governmental obligation (other than a held by a bank, treat the loss as a capital loss as of the
tax-exempt obligation) that is a capital asset is acquired at last day of the tax year. See section 582 for the rules on
an acquisition discount, then, on any gain realized, a the treatment of securities held by a bank.
portion is treated as ordinary income and any remaining
Losses limited after an ownership change or acquisi-
balance is treated as a short-term capital gain. See
tion. If the corporation has undergone an “ownership
section 1271.
change” as defined in section 382(g), section 383 may
Contingent payment debt instruments. If the limit the amount of capital gains that may be offset by
corporation sells a taxable contingent payment debt prechange capital losses. In addition, section 382(h) may
instrument subject to the noncontingent bond method at a in some cases limit capital losses recognized after an
gain, the gain is ordinary income (interest income), even if ownership change when the loss accrued before the
the corporation holds the debt instrument as a capital ownership change. Also, if a corporation acquires control
asset. If the corporation sells a taxable contingent of another corporation (or acquires its assets in a
payment debt instrument subject to the noncontingent reorganization),
bond method at a loss, its loss is an ordinary loss to the section 384 may limit the amount of recognized built-in
extent of its prior original issue discount (OID) inclusions capital gains that may be offset by preacquisition capital
on the debt instrument. If the debt instrument is a capital losses.
asset, treat any loss that is more than the corporation's
Loss from the sale or exchange of capital assets of
prior OID inclusions as a capital loss. See Regulations
an insurance company taxable under section 831.

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Capital losses of a casualty insurance company are See section 1400Z for more details on QOFs and
deductible to the extent that the assets were sold to meet special rules. Also, see IRS.gov/credits-deductions/
abnormal insurance losses or to provide for the payment businesses/opportunity-zones.
of dividend and similar distributions to policyholders. See How to report. Report the eligible gain as the
section 834(c)(6). corporation normally would on Form 8949 and
Gains and losses from partnerships, estates, or Schedule D. See the Instructions for Form 8949 for how to
trusts. Report the corporation's share of capital gains report the deferral. The corporation will also need to
and losses from investments in partnerships, estates, or attach Form 8997 to its tax return annually until it disposes
trusts on the appropriate Part of Form 8949. Report a net of the QOF investment. For more information, see Form
short-term capital gain (loss) on Part I with box C checked. 8997 and its instructions.
Report a net long-term capital gain (loss) on Part II with
box F checked. See the Instructions for Form 8949. Specific Instructions
Undistributed long-term gains from a regulated in- Rounding off to whole dollars. You may enter decimal
vestment company (RIC) or real estate investment points and cents when completing your return. However,
trust (REIT). Report the corporation's share of long-term you should round off cents to whole dollars on your return,
gains from Form 2439, Notice to Shareholder of forms, and schedules to make completing your return
Undistributed Long-Term Capital Gains, on Form 8949, easier. You must either round off all amounts on your
Part II (with box F checked). Enter “From Form 2439” in return to whole dollars, or use cents for all amounts. To
column (a). Enter the gain in column (h). Leave all other round, drop amounts under 50 cents and increase
columns blank. See the Instructions for Form 8949. amounts from 50 to 99 cents to the next dollar. For
Amounts from Form 2438. Enter any net short-term example, $8.40 rounds to $8 and $8.50 rounds to $9.
capital gain from line 4 of Form 2438, Undistributed If you have to add two or more amounts to figure the
Capital Gains Tax Return, on Form 8949, Part I, with box C amount to enter on a line, include cents when adding the
checked. Identify the gain as “Net short-term capital gain amounts and round off only the total.
from Form 2438 line 4” in column (a). Enter the amount of
the gain in column (h). Leave all other columns blank. Disposal of QOF investment. If the corporation
disposed of any investment in a QOF during the tax year,
Enter the amount from line 12 of Form 2438 on Form check the box on the top of Schedule D and see the
8949, Part II, with box F checked. Identify the gain as Instructions for Form 8949 for additional reporting
“Undistributed capital gains not designated (from Form requirements.
2438)” in column (a). Enter the amount of the gain in
column (h). Leave all other columns blank. Parts I and II
Net Asset Value (NAV) method for money market Lines 1a and 8a—Transactions not reported on Form
funds. Report capital gain or loss determined under the 8949. The corporation can report on line 1a (for
NAV method with respect to shares in a money market short-term transactions) or line 8a (for long-term
fund on Form 8949, Part I, with box C checked. Enter the transactions) the aggregate totals from any transactions
name of each fund followed by “(NAV)” in column (a). (other than sales of collectibles) for which:
Enter the net gain or loss in column (h). Leave all other • The corporation received a Form 1099-B (or substitute
columns blank. See the Instructions for Form 8949. statement) that shows basis was reported to the IRS and
Deferral of gain invested in Qualified Opportunity does not show any adjustments in box 1f or box 1g;
Fund (QOF). If the corporation has an eligible gain • The Ordinary checkbox in box 2 of Form 1099-B (or
(defined below), the corporation can invest that gain in a substitute statement) is not checked;
QOF and elect to defer part or all of the gain that it would • The QOF checkbox in box 3 of Form 1099-B (or
otherwise include in income. The gain is deferred until the substitute statement) is not checked; and
corporation disposes of the investment in the QOF or • The corporation does not need to make any
December 31, 2026, whichever is earlier. If the adjustments to the basis or type of gain or loss reported
corporation makes the election, only include gain to the on Form 1099-B (or substitute statement), or to its gain or
extent, if any, the amount of realized gain is more than the loss.
aggregate amount invested in a QOF during the 180-day See How To Complete Form 8949, Columns (f) and (g) in
period beginning on the date the gain was realized. The the Instructions for Form 8949 for details about possible
corporation may also be able to permanently exclude the adjustments to the corporation's gain or loss.
gain from the sale or exchange of any investment in a If the corporation chooses to report these transactions
QOF if the investment is held for at least 10 years. on lines 1a and 8a, do not report them on Form 8949.
QOF. A QOF is any investment vehicle that is organized Also, the corporation does not need to attach a statement
as either a corporation or partnership for the purpose of to explain the entries on lines 1a and 8a.
investing in eligible property that is located in a Qualified Figure gain or loss on each line. Subtract the cost or
Opportunity Zone. other basis in column (e) from the proceeds (sales price)
Eligible gain. Gain that is eligible to be deferred if it is in column (d). Enter the gain or loss in column (h). Enter
invested in a QOF includes any amount treated as a negative amounts in parentheses.
capital gain for federal income tax purposes.
Example 1—Basis reported to the IRS. The
corporation received a Form 1099-B reporting the sale of

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stock held for 3 years, showing proceeds (in box 1d) of checked, meaning that basis was reported to the IRS.
$6,000 and cost or other basis (in box 1e) of $2,000. Box However, the basis shown in box 1e is incorrect. Do not
12 is checked, meaning that basis was reported to the report this transaction on line 1a or line 8a. Instead, report
IRS. The corporation does not need to make any the transaction on Form 8949. See the instructions for
adjustments to the amounts reported on Form 1099-B or Form 8949, columns (f), (g), and (h). Complete all
enter any codes. This was the corporation's only 2023 necessary pages of Form 8949 before completing line 1b,
transaction. Instead of reporting this transaction on Form 2, 3, 8b, 9, or 10 of Schedule D.
8949, the corporation can enter $6,000 on Schedule D,
Lines 1b, 2, 3, 8b, 9, and 10—Transactions reported
line 8a, column (d); $2,000 in column (e); and $4,000
on Form 8949. Complete Form 8949 before completing
($6,000 - $2,000) in column (h).
Schedule D, lines 1b, 2, 3, 8b, 9, and 10. Enter on
If the corporation had a second transaction that was the Schedule D, lines 1b, 2, and 3, respectively, the short-term
same except that the proceeds were $5,000 and the basis totals from all Forms 8949, Part I, line 2, with box A, B, or
was $3,000, combine the two transactions. Enter $11,000 C, respectively, checked. Enter on Schedule D, lines 8b, 9,
($6,000 + $5,000) on Schedule D, line 8a, column (d); and 10, respectively, the long-term totals from all Forms
$5,000 ($2,000 + $3,000) in column (e); and $6,000 8949, Part II, line 2, with box D, E, or F, respectively,
($11,000 - $5,000) in column (h). checked.
Example 2—Basis not reported to the IRS. The Line 6. Enter any unused capital loss carryover. Attach a
corporation received a Form 1099-B showing proceeds (in statement showing how the carryover was computed.
box 1d) of $6,000 and cost or other basis (in box 1e) of
$2,000. Box 12 is not checked, meaning that basis was Line 14. Enter the total capital gain distributions paid by a
not reported to the IRS. Do not report this transaction on RIC or REIT during the year, regardless of how long the
line 1a or line 8a. Instead, report the transaction on Form corporation owned stock in the RIC or REIT.
8949. Complete all necessary pages of Form 8949 before Also enter any amount received from a RIC or REIT that
completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D. qualifies as a distribution in complete liquidation under
Example 3—Adjustment. The corporation received a section 332(b) and is designated by the RIC or REIT as a
Form 1099-B showing proceeds (in box 1d) of $6,000 and capital gain distribution. See section 332(c).
cost or other basis (in box 1e) of $2,000. Box 12 is

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