Modeling Capital Gains

Use the "Schedule D Income" section to model different types of capital gains/losses scenarios.

Enter short-term and long-term capital gains in the "Schedule D Income" section in their respective short-term and long-term worksheets, accessible by clicking the pencil icons circled below. Losses (including carryforwards) should be entered as negative numbers.

Holistiplan does not automatically carry forward losses from scenarios into future scenarios, since scenarios are not required to be entered sequentially, as noted in the alert circled below.




You will need to make sure any carryforwards are noted for calculation purposes. Be careful about simply assuming that the capital gains from a previous year will automatically repeat in all future years.

There are two versions of Schedule D used in tax calculations - one under the regular tax calculation, and an alternate version of Schedule D under the calculation for AMT (Alternative Minimum Tax). For the vast majority of taxpayers, those two Schedule Ds are identical. In those cases, you will see the 'Show AMT' toggle defaulted to the "off" position, as seen below.  




You may toggle that 'Show AMT' toggle to the "on" position if you wish, and the new Capital Gains spreadsheet will look like the one below (note the Regular Schedule D values and Schedule D for AMT values are identical). However, you can click the "unlink" icon circled below if those Schedule D values are not identical due to a different gain calculation under the AMT calculation. Manual entries will then be needed in the AMT column here or within the "AMT Short Term Capital Gains" or "AMT Long Term Capital Gains" entries within the AMT section of Scenario Analysis.





In the example above, we've recognized a $33,000 capital loss for our client in 2024, and the $30,000 capital loss carryforward is applied to 2025. The client also has an additional $10,000 of short-term gains that have been recognized in 2025, along with $5,000 of long-term gains that have been recognized. As with Schedule D and the tax calculation, gains and losses are netted in the following order:

1. Short-Term Gains/Losses are netted together.
2. Long-Term Gains/Losses are netted together.
3. Short-Term and Long-Term losses are netted against each other, with the remaining amount taking on the character (short-term or long-term) of those remaining gains/losses.

For gains related to the sale of collectibles taxed at 28%, enter those gains in the "Gains Taxed at 28%" located at the bottom of the Capital Gains Worksheet. Similarly, to enter depreciation recapture upon the sale of real estate, enter those capital gains as short-term or long-term gains depending on their holding period, and ALSO in the “Section 1250 Gain (Line 19) - Depreciation Recapture." Our article on Depreciation Recapture provides additional guidance on how to enter those Section 1250 Gains accurately.

If you have any questions, please feel free to contact our Support Team for further assistance!