Schedule D
A U.S. tax form summarizing a taxpayer's total capital gains and losses for the year, drawing on the detailed transaction-level figures reported on Form 8949.
Schedule D is a U.S. Internal Revenue Service tax form that summarizes a taxpayer's total capital gains and losses for the year, aggregating the detailed, transaction-by-transaction figures already reported on Form 8949 (see Kaavon's "Form 8949" glossary definition) into summary totals, separated by short-term versus long-term capital gains (see Kaavon's "Short-Term vs. Long-Term Capital Gains" glossary definition) holding periods. The final net figures from Schedule D then flow into the taxpayer's overall individual income tax return.
For a crypto investor, Schedule D is where the cumulative effect of all their individual crypto disposals during the year — potentially including gains, losses, and any applied capital loss carryforward (see Kaavon's "Capital Loss Carryforward" glossary definition) — ultimately gets summarized into the specific figures that determine their actual capital gains tax liability for that year.
Examples
- A crypto investor's Schedule D combines the totals from their Form 8949 into net short-term and long-term capital gain or loss figures for the year.
- A crypto investor's available capital loss carryforward from a prior year gets applied on Schedule D, reducing their current year's reported net capital gain.