Which schedule is used to report capital gains and losses?

The schedule used to report capital gains and losses is Schedule D. This form is specifically designed to help taxpayers calculate their overall capital gains and losses from the sale or exchange of capital assets. Capital assets may include stocks, bonds, real estate (not used for business), and more.

When a taxpayer sells a capital asset, they must report the results of that transaction on Schedule D, detailing the sale proceeds, the cost basis of the asset, and the resulting capital gain or loss. The information from Schedule D contributes to determining the taxpayer's overall tax liability based on the net gains.

In contrast, Schedule C is used for reporting income or loss from a business operated as a sole proprietorship, Schedule E involves reporting income or loss from rentals, partnerships, S corporations, estates, and trusts, while Schedule A is used to itemize personal deductions. Each of these schedules serves a different purpose in the tax filing process, focusing on specific types of income and deductions.