PDF document

- 1 -

Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print
AH XSL/XML Fileid: … form-1065)/2024/a/xml/cycle03/source (Init. & Date) _______

Page 1 of 5 12:27 - 22-Aug-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Department of the Treasury
Internal Revenue Service
2024

Instructions for Schedule D

(Form 1065)

Capital Gains and Losses

Section references are to the Internal Revenue Use Form 4797, Sales of Business • U.S. Government publications,
Code unless otherwise noted. Property, to report the following. including the Congressional Record, that
• Sales or exchanges of property used in the partnership received from the
Future Developments a trade or business. government, other than by purchase at the
• Sales or exchanges of depreciable or normal sales price, or that the partnership
For the latest information about amortizable property. got from another taxpayer who had
developments related to Schedule D • Sales or other dispositions of securities received it in a similar way, if the
(Form 1065) and its instructions, such as or commodities held in connection with a partnership's basis is determined by
legislation enacted after they were trading business, if the partnership made a reference to the previous owner.
published, go to IRS.gov/Form1065. mark-to-market election (see • Certain commodities derivative financial
Mark-to-market accounting method in the instruments held by a dealer. See section
General Instructions Instructions for Form 1065). 1221(a)(6).
• Involuntary conversions (other than • Certain hedging transactions entered
Purpose of Schedule from casualties or thefts). into in the normal course of the trade or
Use Schedule D (Form 1065) to report the • The disposition of noncapital assets business. See section 1221(a)(7).
following. (other than inventory or property held • Supplies regularly used in the trade or
• The total capital gains and losses from primarily for sale to customers in the business.
transactions reported on Form 8949, ordinary course of a trade or business).
Sales and Other Dispositions of Capital • Election to defer a qualified section Short- or Long-Term Gain
Assets. 1231 gain invested in a qualified
• Certain transactions the partnership opportunity fund (QOF). or Loss
Report short-term gains or losses in Part I.
doesn't have to report on Form 8949. Use Form 6781, Gains and Losses Report long-term gains or losses in Part II.
• Capital gains from installment sales From Section 1256 Contracts and The holding period for short-term capital
from Form 6252, Installment Sale Income. Straddles, to report gains and losses from gains and losses is generally 1 year or
• Capital gains and losses from Form section 1256 contracts and straddles. If less. The holding period for long-term
8824, Like-Kind Exchanges (and section there are limited partners, see section capital gains and losses is generally more
1043 conflict-of-interest sales). 1256(e)(4) for the limitation on losses from than 1 year. However, an exception
• Partnership's share of net capital gains hedging transactions. applies for certain sales of applicable
and losses, including specially allocated partnership interests. See Transactions
capital gains and losses, from Use Form 8997, Initial and Annual with respect to applicable partnership
partnerships, estates, and trusts. Statement of Qualified Opportunity Fund interests under Items for Special
• Capital gain distributions. (QOF) Investments, if you held a qualified Treatment below.
investment in a QOF at any time during the
Note. For more information, see Pub. year. See the Form 8997 instructions. For more information about holding
544, Sales and Other Dispositions of periods, see the Instructions for Form
Assets, and the Instructions for Form What Are Capital Assets? 8949.
8949. Each item of property the partnership held
(whether or not connected with its trade or Items for Special
Other Forms the business) is a capital asset except the Treatment
Partnership May Have To following. • Transactions with respect to applicable
• Stock in trade or other property partnership interests. The long-term
File included in inventory or held mainly for holding period for gains and losses with
Use Form 8949 to report the sale or sale to customers. respect to applicable partnership interests
exchange of a capital asset (defined later) • Accounts or notes receivable acquired is more than 3 years. If the holding period
not reported on another form or schedule in the ordinary course of the trade or is 3 years or less, gains and losses with
and to report the income deferral or business for services rendered or from the respect to applicable partnership interests
exclusion of capital gains. See the sale of stock in trade or other property are treated as short term. An applicable
Instructions for Form 8949. Complete all held mainly for sale to customers. partnership interest is any interest in a
necessary pages of Form 8949 before you • Depreciable or real property used in the partnership that, directly or indirectly, is
complete line 1b, 2, 3, 8b, 9, or 10 of trade or business, even if it is fully transferred to (or is held by) the taxpayer
Schedule D. See Lines 1a and 8a, later, depreciated. in connection with the performance of
for more information about when to use • Certain copyrights; literary, musical, or substantial services by the taxpayer, or
Form 8949. artistic compositions; letters or any other related person, in any applicable
Use Form 4684, Casualties and Thefts, memoranda; or similar property. See trade or business. See section 1061 and
to report involuntary conversions of section 1221(a)(3). Pub. 541, Partnerships, for details.
property due to casualty or theft. • Certain patents, inventions, models, or
designs (whether or not patented); secret
formulas or processes; or similar property.

Aug 22, 2024 Cat. No. 51610S

- 2 -

Enlarge image

Page 2 of 5 Fileid: … form-1065)/2024/a/xml/cycle03/source 12:27 - 22-Aug-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• Transactions by a securities dealer. See • Any loss on the disposition of converted method may not be used to report sales of
sections 475 and 1236, and Rev. Rul. wetland or highly erodible cropland that is stock or securities traded on an
97-39, 1997-39 I.R.B. 4. first used for farming after March 1, 1986, established securities market. Use Form
• Bonds and other debt instruments. See is reported as a long-term capital loss on 6252 to report the sale on the installment
Pub. 550, Investment Income and Form 8949/Schedule D, but any gain on method. Also use Form 6252 to report any
Expenses. such a disposition is reported as ordinary payment received during the tax year from
• Gain on disposition of market discount gain on Form 4797. See section 1257 for a sale made in an earlier year that was
bonds. In general, a capital gain upon the details. reported on the installment method.
disposition of a market discount bond is • Transfer of partnership assets and
treated as interest income to the extent of liabilities to a newly formed corporation in If the partnership wants to elect out of
accrued market discount as of the date of exchange for all of its stock. See Rev. Rul. the installment method for installment gain
disposition. See sections 1276 through 84-111, 1984-2 C.B. 88. that isn’t specially allocated among the
1278 and Pub. 550 for more information • Disposition of foreign investment in a partners, it must report the full amount of
on market discount. See the Instructions U.S. real property interest. See section the gain on Form 8949 on a timely filed
for Form 8949 for detailed information 897. return (including extensions) for the year of
about how to report the disposition of a • Any loss from a sale or exchange of the sale.
market discount bond. property between the partnership and If the partnership wants to elect out of
• Contingent payment debt instruments. certain related persons isn’t allowed, the installment method for installment gain
Any gain recognized on the sale, except for distributions in a complete that is specially allocated among the
exchange, or retirement of a contingent liquidation of a corporation. See sections partners, it must do the following on a
payment debt instrument subject to the 267 and 707(b) for details. timely filed return (including extensions).
noncontingent bond method is generally • Any loss from securities that are capital 1. For a short-term capital gain, report
treated as interest income rather than as assets that become worthless during the the full amount of the gain on Schedule K,
capital gain. In certain situations, all or a year is treated as a loss from the sale or line 8 or 11.
portion of a loss recognized on the sale, exchange of a capital asset on the last day
exchange, or retirement of a contingent of the tax year. For a long-term capital gain, report the
payment debt instrument subject to the • Nonrecognition of gain on sale of stock full amount of the gain on Schedule K,
noncontingent bond method may be to an employee stock ownership plan line 9a or 11. Report the collectibles gain
treated as an ordinary loss rather than as (ESOP) or an eligible cooperative. See (28% rate gain) on Schedule K, line 9b.
a capital loss. See Regulations section section 1042 and Temporary Regulations 2. Enter each partner's share of the
1.1275-4(b) and Pub. 1212 for more section 1.1042-1T for rules under which a full amount of the gain on Schedule K-1,
information on contingent payment debt taxpayer may elect not to recognize gain box 8 or 9a, or in box 11 using code I,
instruments subject to the noncontingent from the sale of certain stock to an ESOP whichever applies. Report the collectibles
bond method. See the Instructions for or an eligible cooperative. Under section gain (28% rate gain) in box 9b of
Form 8949 for detailed information about 703(b), the partnership is the appropriate Schedule K-1.
how to report the disposition of a entity to make the 1042 election.
contingent payment debt instrument. • A nonbusiness bad debt must be If the partnership filed its original return
• Gain on certain short-term federal, treated as a short-term capital loss and on time without making the election, it may
state, and municipal obligations (other can be deducted only in the year the debt make the election on an amended return
than tax-exempt obligations). If a becomes totally worthless. See Pub. 550 filed no later than 6 months after the due
short-term governmental obligation (other for more details. date of the return (excluding extensions).
than a tax-exempt obligation) that is a • Any loss from a wash sale of stock or Enter “Filed pursuant to section
capital asset is acquired at an acquisition securities (including contracts or options 301.9100-2” at the top of the amended
discount, a portion of any gain realized is to acquire or sell stock or securities) return.
treated as ordinary income and any cannot be deducted unless the • A sale or other disposition of an interest
remaining balance as a short-term capital partnership is a dealer in stock or in a partnership owning unrealized
gain. See section 1271. securities and the loss was sustained in a receivables or inventory items may result
• Certain real estate subdivided for sale transaction made in the ordinary course of in ordinary gain or loss. See Pub. 541 for
that may be considered a capital asset. the partnership's trade or business. A more details.
See section 1237. wash sale occurs if the partnership • Gain from certain constructive
• Gain on the sale of depreciable acquires (by purchase or exchange), or ownership transactions. Gain in excess of
property to a more-than-50%-owned has a contract or option to acquire, the net underlying long-term gain the
entity, or to a trust in which the partnership substantially identical stock or securities partnership would have recognized if it
is a beneficiary, is treated as ordinary gain. within 30 days before or after the date of had held a financial asset directly during
See section 1239. the sale or exchange. See section 1091 for the term of a derivative contract must be
• Liquidating distributions from a more information. Report a wash sale treated as ordinary income. See section
corporation. See Pub. 550 for details. transaction on Form 8949, Part I or II (with 1260 for details.
• Gain on the sale or exchange of stock in the appropriate box checked), depending • Gain from the sale of collectibles.
certain foreign corporations. See section on how long the partnership owned the Report any collectibles gain (28% rate
1248. stock or securities. Enter “W” in column (f) gain) (loss) included on lines 8a through
• Gain or loss on options to buy or sell, and enter as a positive number in column 14 on line 9b of Schedule K (and each
including closing transactions. See Pub. (g) the amount of the loss not allowed. partner's share in box 9b of
550 for details. Complete all remaining columns. See the Schedule K-1). A collectibles gain (28%
• Gain or loss from a short sale of Instructions for Form 8949. rate gain) (loss) is any long-term gain or
property. See Pub. 550 for details. • Gain from installment sales. If the deductible long-term loss from the sale or
• Transfer of property to a political partnership sold property at a gain and it exchange of a collectible that is a capital
organization if the fair market value (FMV) will receive a payment in a tax year after asset.
of the property exceeds the partnership's the year of sale, it must generally report Collectibles include works of art, rugs,
adjusted basis in such property. See the sale on the installment method unless antiques, metals (such as gold, silver, and
section 84. it elects not to. However, the installment platinum bullion), gems, stamps, coins,

2 Instructions for Schedule D (Form 1065) 2024

- 3 -

Enlarge image

Page 3 of 5 Fileid: … form-1065)/2024/a/xml/cycle03/source 12:27 - 22-Aug-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

alcoholic beverages, and certain other or disposing of securities) from a trading it would be reported if the election was not
tangible property. business on page 1 of Form 1065. made. Then enter “R” in column (f). Enter
Report any 28% gain or loss from a A trader may also hold securities for the amount of the postponed gain as a
sale or exchange of a collectible on Form investment. The rules for investors will negative number (in parentheses) in
8949, Part II (with the appropriate box generally apply to those securities. column (g). See the Instructions for Form
checked). See the Instructions for Form Allocate interest and other expenses 8949.
8949. between the partnership's trading Attach a statement to Form 1065 that
business and its investment securities. (a) identifies the replacement qualified
Also include gain (but not loss) from the Investment interest expense is reported on small business stock, (b) shows the
sale or exchange of an interest in a line 13c of Schedule K and in box 13 of computation of the adjustment to the
partnership or trust held more than 1 year Schedule K-1 using code H. partnership's basis in the replacement
and attributable to unrealized appreciation stock for the amount of any postponed
of collectibles. For details, see Constructive sale treatment for certain
gain under section 1045, and (c) shows
Regulations section 1.1(h)-1. Also, attach appreciated positions. Generally, the
the dates on which the replacement stock
the statement required under Regulations partnership must recognize gain (but not
was acquired by the partnership.
section 1.1(h)-1(e). loss) on the date it enters into a
constructive sale of any appreciated The partnership must also
Special rules for traders in securities. position in stock, a partnership interest, or ! separately state the amount of the
Traders in securities are engaged in the certain debt instruments as if the position CAUTION gain rolled over on qualified stock
business of buying and selling securities were disposed of at FMV on that date. under section 1045 on Form 1065,
for their own account. To be engaged in The partnership is treated as making a Schedule K, line 11. Each partner must
business as a trader in securities: constructive sale of an appreciated determine if they qualify for the rollover at
• The partnership must seek to profit from position when it (or a related person, in the partner level or if they want to opt out
daily market movements in the prices of some cases) does one of the following. of the section 1045 election. Also, the
securities and not from dividends, interest, Enters into a short sale of the same or partnership must separately state on that
•
or capital appreciation; substantially identical property (that is, a line any gain that would qualify for the
• The partnership's trading activity must “short sale against the box”). section 1045 rollover at the partner level
be substantial; and Enters into an offsetting notional instead of the partnership level (because a
•
• The partnership must carry on the principal contract relating to the same or partner was entitled to purchase
activity with continuity and regularity. substantially identical property. replacement stock) and any gain on
The following facts and circumstances • Enters into a futures or forward contract qualified stock that could qualify for an
should be considered in determining if a to deliver the same or substantially exclusion under section 1202.
partnership's activity is a business. identical property. To be qualified small business stock,
• Typical holding periods for securities • Acquires the same or substantially the stock must meet all of the following
bought and sold. identical property (if the appreciated tests.
• The frequency and dollar amount of the position is a short sale, an offsetting It must be stock in a C corporation (that
partnership's trades during the year. notional principal contract, or a futures or •
is, not S corporation stock).
• The extent to which the partners pursue forward contract). It must have been originally issued after
the activity to produce income for a Exception. Generally, constructive sale •
August 10, 1993.
livelihood. treatment doesn't apply if: As of the date the stock was issued, the
• The amount of time devoted to the • The partnership closed the transaction •
corporation was a qualified small
activity. before the end of the 30th day after the business. A qualified small business is a
Like an investor, a trader must end of the tax year in which it was entered domestic C corporation with total gross
generally report each sale of securities into, assets of $50 million or less (a) at all times
(taking into account commissions and any • The partnership held the appreciated after August 9, 1993, and before the stock
other costs of acquiring or disposing of the position to which the transaction relates was issued; and (b) immediately after the
securities) on Form 8949 unless one of the throughout the 60-day period starting on stock was issued. Gross assets include
exceptions described in the Instructions the date the transaction was closed, and those of any predecessor of the
for Form 8949 applies. However, if a trader • At no time during that 60-day period corporation. All corporations that are
made the mark-to-market election (see was the partnership's risk of loss reduced members of the same parent-subsidiary
Mark-to-market accounting method in the by holding certain other positions. controlled group are treated as one
Instructions for Form 1065), each For details and other exceptions to corporation.
transaction is reported in Part II of Form these rules, see Pub. 550. • The partnership must have acquired the
4797 instead of Form 8949. stock at its original issue (either directly or
Rollover of gain from qualified stock.
Regardless of whether a trader reports If the partnership sold qualified small through an underwriter), either in
its gains and losses on Form 8949 or Form business stock (defined below) it held for exchange for money or other property or
4797, the gain or loss from the disposition more than 6 months, it may postpone gain as pay for services (other than as an
of securities isn’t taken into account when if it purchased other qualified small underwriter) to the corporation. In certain
figuring net earnings from business stock during the 60-day period cases, the partnership may meet the test if
self-employment on Schedules K and K-1. that began on the date of the sale. The it acquired the stock from another person
See section 1402(i) for an exception that partnership must recognize gain to the who met this test (such as by gift or at
applies to section 1256 contracts. extent the sale proceeds exceed the cost death) or through a conversion or
The limitation on investment interest of the replacement stock. Reduce the exchange of qualified small business
expense that applies to investors doesn't basis of the replacement stock by any stock by the holder.
apply to interest paid or incurred in a postponed gain. • During substantially all the time the
partnership held the stock:
trading business. A trader reports interest If the partnership chooses to postpone
expense and other expenses (excluding gain, report the sale on Form 8949, Part I 1. The corporation was a C
commissions and other costs of acquiring or II (with the appropriate box checked), as corporation;

Instructions for Schedule D (Form 1065) 2024 3

- 4 -

Enlarge image

Page 4 of 5 Fileid: … form-1065)/2024/a/xml/cycle03/source 12:27 - 22-Aug-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2. At least 80% of the value of the • Gain attributable to real property, or an to report the deferral. You will need to
corporation's assets were used in the intangible asset, that isn’t an integral part attach Form 8997 annually until you
active conduct of one or more qualified of a renewal community business. dispose of the QOF investment. For more
businesses (defined below); and • Gain from a related-party transaction. information, see Form 8997 and its
3. The corporation was not a foreign See Sales and Exchanges Between instructions.
corporation, domestic international sales Related Persons in chapter 2 of Pub. 544.
Exclusion of gain from DC Zone as-
corporation (DISC), former DISC, • Gain on the sale of an interest in a
sets. If the partnership sold or
corporation that has made (or that has a partnership or stock of an S corporation,
exchanged a District of Columbia
subsidiary that has made) a section 936 which is a renewal community business
Enterprise Zone (DC Zone) asset that it
election before March 23, 2018, regulated during substantially all of the period you
held for more than 5 years, it may be able
investment company (RIC), real estate held such interest or stock, attributable to
to exclude the qualified capital gain. The
investment trust (REIT), real estate real property or an intangible asset which
DC Zone asset must have been acquired
mortgage investment conduit (REMIC), isn’t an integral part of the renewal
after 1997, and before 2012, to qualify as
financial asset securitization investment community business.
an asset for which the partnership may be
trust (FASIT), or cooperative. See section 1400F (as in effect before able to take the exclusion. The sale or
its repeal on March 23, 2018) for more exchange of DC Zone capital assets
Note. A specialized small business details and special rules. reported on Form 8949 and Schedule D
investment company (SSBIC) is treated as includes the following.
having met test 2 above. How to report. If applicable, report
the sale or exchange on Form 8949, Part II • Stock in a domestic corporation that
A qualified business is any business (with the appropriate box checked), as it was a DC Zone business.
other than the following. would be reported if the exclusion was not • Interest in a partnership that was a DC
• One involving services performed in the taken. Enter “X” in column (f) and enter the Zone business.
field of health, law, engineering, amount of the exclusion as a negative Report the sale or exchange of tangible
architecture, accounting, actuarial number (in parentheses) in column (g). property used in the partnership's DC
science, performing arts, consulting, See the Instructions for Form 8949. Zone business on Form 4797.
athletics, financial services, or brokerage Gains not qualified for exclusion.
services. Deferral of gain invested in a qualified
• One whose principal asset is the opportunity fund (QOF). If the The following gains don’t qualify for the
reputation or skill of one or more partnership realized gain from an actual, exclusion of gain from DC Zone assets.
employees. or deemed, sale or exchange with an • Gain attributable to periods after
• Any banking, insurance, financing, unrelated person and during the 180-day December 31, 2016.
leasing, investing, or similar business. period beginning on the date the gain was • Gain on the sale of an interest in a
• Any farming business (including the realized, invested an amount of the gain in partnership or stock of an S corporation,
raising or harvesting of trees). a QOF, the partnership may be able to which is a DC Zone business during
• Any business involving the production elect to temporarily defer part or all of the substantially all of the period you held
of products for which percentage gain that would otherwise be included in such interest or stock attributable to real
depletion can be claimed. income. If the partnership makes the property or an intangible asset which isn’t
• Any business of operating a hotel, election, the gain included in income is an integral part of the DC Zone business.
motel, restaurant, or similar business. only to the extent, if any, the amount of • Gain from a related-party transaction.
realized gain exceeds the aggregate See Sales and Exchanges Between
Exclusion of gain from qualified com- amount invested in a QOF during the Related Persons in chapter 2 of Pub. 544.
munity assets. If the partnership sold or 180-day period beginning on the date gain • Gain treated as ordinary income under
exchanged a qualified community asset is realized. The partnership may also be section 1245.
acquired after 2001 and before 2010, that able to permanently exclude the gain from • Section 1250 gain figured as if section
it held for more than 5 years, it can exclude the sale or exchange of any investment in 1250 applied to all depreciation rather
any qualified capital gain. The exclusion a QOF if the investment is held for at least than the additional depreciation.
applies to an interest in, or property of, 10 years. For more information, see • Gain attributable to real property, or an
certain qualified community assets. section 1400Z-2. intangible asset, that isn’t an integral part
of a DC Zone business.
Qualified community asset. A Qualified opportunity fund (QOF). A See section 1400B (as in effect before
qualified community asset is any of the QOF is any investment vehicle that is its repeal on March 23, 2018) for more
following. organized as either a corporation or details on DC Zone assets and special
• Qualified community stock. partnership for the purpose of investing in rules.
• Qualified community partnership eligible property that is located in a
interest. Qualified Opportunity Zone. How to report. If applicable, report
• Qualified community business property. the sale or exchange of a DC Zone asset
Eligible gain. Gain that is eligible to on Form 8949, Part II (with the appropriate
Qualified capital gain. Qualified be deferred if it is invested in a QOF box checked), as it would be reported if
capital gain is any gain recognized on the includes any amount treated as a capital the exclusion was not taken. Enter “X” in
sale or exchange of a qualified community gain for federal income tax purposes. See column (f) and enter the amount of the
asset, but doesn't include any of the section 1400Z-2 for more details on QOFs exclusion as a negative number (in
following. and the special rules. Also, see IRS.gov/ parentheses) in column (g). See the
• Gain attributable to periods after credits-deductions/businesses/ Instructions for Form 8949.
December 31, 2014. opportunity-zones.
• Gain treated as ordinary income under Undistributed long-term gains from a
section 1245. How to report. Report the eligible regulated investment company (RIC)
• Section 1250 gain figured as if section gain on Schedule D (Form 1065) as it or real estate investment trust (REIT).
1250 applied to all depreciation rather would otherwise be reported if the Report the partnership's share of
than the additional depreciation. partnership were not making the election. long-term gains from Form 2439, Notice to
See the Instructions for Form 8949 for how Shareholder of Undistributed Long-Term

4 Instructions for Schedule D (Form 1065) 2024

- 5 -

Enlarge image

Page 5 of 5     Fileid: … form-1065)/2024/a/xml/cycle03/source                                    12:27 - 22-Aug-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Capital Gains, on Form 8949, Part II (with   gain or loss (short term or long term)      Example 3—adjustment.         The 
box F checked). Enter “From Form 2439”       reported on Form 1099-B (or substitute      partnership received a Form 1099-B 
in column (a). Enter the gain in column (h). statement), or to its gain or loss.         showing proceeds (in box 1d) of $6,000 
Leave all other columns blank. See the       See How To Complete Form 8949,              and cost or other basis (in box 1e) of 
Instructions for Form 8949.                  Columns (f) and (g) in the Instructions for $2,000. Box 12 is checked, meaning that 
                                             Form 8949 for details about possible        basis was reported to the IRS. However, 
NAV method for certain money market 
                                             adjustments to the partnership's gain or    the basis shown in box 1e is incorrect. Do 
funds.  Report capital gain or loss 
                                             loss.                                       not report this transaction on line 1a or 
determined under the net asset value 
                                                                                         line 8a. Instead, report the transaction on 
(NAV) method with respect to shares in a     If the partnership chooses to report        Form 8949. See the instructions for Form 
NAV money market fund on Form 8949,          these transactions on lines 1a and 8a,      8949, columns (f), (g), and (h). Complete 
Part I, with box C checked. Enter the name   don’t report them on Form 8949.             all necessary pages of Form 8949 before 
of each fund followed by “(NAV)” in column 
                                                                                         completing line 1b, 2, 3, 8b, 9, or 10 of 
(a). Enter the net gain or loss in column    Figure gain or loss on each line.           Schedule D.
(h). Leave all other columns blank. See the  Subtract the cost or other basis in column 
Instructions for Form 8949.                  (e) from the proceeds (sales price) in      Lines 1b, 2, 3, 8b, 9, and 10, 
                                             column (d). Enter the gain or loss in       Column (h)—Transactions 
Specific Instructions                        column (h). Enter negative amounts in       Reported on Form 8949
Complete all necessary pages of Form         parentheses.
                                                                                         Figure gain or loss on each line. First, 
8949 before completing line 1b, 2, 3, 8b, 9, Example 1—basis reported to the             subtract cost or other basis (column (e)) 
or 10 of Schedule D.                         IRS.  The partnership received a Form       from proceeds/sales price (column (d)). 
Rounding Off to Whole Dollars                1099-B reporting the sale of stock held for Then, combine the result with any 
                                             3 years, showing proceeds (in box 1d) of    adjustments in column (g). Enter the gain 
Cents can be rounded to whole dollars on     $6,000 and cost or other basis (in box 1e)  or loss in column (h). Enter negative 
Schedule D. If cents are rounded to whole    of $2,000. Box 12 is checked, meaning       amounts in parentheses.
dollars, all amounts must be rounded. To     that basis was reported to the IRS. The 
round, drop cent amounts under 50 and        partnership doesn't need to make any        Example 1—gain.        Column (d) is 
increase cent amounts over 49 to the next    adjustments to the amounts reported on      $6,000 and column (e) is $2,000. Enter 
dollar. For example, $1.49 becomes $1        Form 1099-B or enter any codes. This was    $4,000 in column (h).
and $1.50 becomes $2.                        your only 2024 transaction. Instead of      Example 2—loss.        Column (d) is 
  If two or more amounts have to be          reporting this transaction on Form 8949,    $6,000 and column (e) is $8,000. Enter 
added to figure the amount to enter on a     the partnership can enter $6,000 on         ($2,000) in column (h).
line, include cents when adding the          Schedule D, line 8a, column (d); $2,000 in  Example 3—adjustment.           Column (d) 
amounts and round only the total.            column (e); and $4,000 ($6,000 − $2,000)    is $6,000, column (e) is $2,000, and 
                                             in column (h).
Lines 1a and 8a—Transactions                                                             column (g) is ($1,000). Enter $3,000 
                                             If you had a second transaction that        ($6,000 − $2,000 − $1,000) in column (h).
Not Reported on Form 8949                    was the same except that the proceeds 
The partnership can report on line 1a (for   were $5,000 and the basis was $3,000,       Lines 6 and 13—Capital Gains 
short-term transactions) or line 8a (for     combine the two transactions. Enter         (Losses) From Other 
long-term transactions) the aggregate        $11,000 ($6,000 + $5,000) on                Partnerships, Estates, and 
totals from any transactions (except sales   Schedule D, line 8a, column (d); $5,000 
of collectibles) for which:                  ($2,000 + $3,000) in column (e); and        Trusts
• The partnership received a Form            $6,000 ($11,000 − $5,000) in column (h).    See the Schedule K-1 or other information 
1099-B (or substitute statement) that                                                    supplied to the partnership by the other 
shows basis was reported to the IRS and      Example 2—basis not reported to 
doesn't show any adjustment in box 1f or     the IRS. The partnership received a Form    partnership, estate, or trust.
1g;                                          1099-B showing proceeds (in box 1d) of      Line 14—Capital Gain 
• The Ordinary checkbox in box 2 of          $6,000 and cost or other basis (in box 1e)  Distributions
Form 1099-B (or substitute statement)        of $2,000. Box 12 isn’t checked, meaning 
isn’t checked;                               that basis was not reported to the IRS.     Enter on line 14 the total capital gain 
• The QOF checkbox in box 3 of Form          Don’t report this transaction on line 1a or distributions paid to the partnership during 
1099-B (or substitute statement) isn’t       line 8a. Instead, report the transaction on the year.
checked; and                                 Form 8949. Complete all necessary pages 
• The partnership doesn't need to make       of Form 8949 before completing line 1b, 2, 
any adjustments to the basis or type of      3, 8b, 9, or 10 of Schedule D.

Instructions for Schedule D (Form 1065) 2024                                                                                       5

PDF file checksum: 776159377

(Plugin #1/10.13/13.0)