Tax Report: Schedule D (Capital Gains/Losses)

Schedule D captures and summarizes the capital gains/losses that flow from other forms on the tax return that are then reported on Form 1040.

This table summarizes both short-term and long-term capital gains and losses. Peter and Paula had $2,500 of short-term gains and $19,500 of long-term gains, for a total capital gains amount of $22,000.

Seeing short-term capital gains in this section or in the Key Figures section can be a good talking point, since short-term gains are taxed as ordinary income and there may be opportunities to have gains taxed at the more preferential long-term capital gains tax rate.