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Begin by entering your name(s) as shown on Form 1040 at the top of the sheet. This ensures that your information is correctly associated with your tax return.
In Part I, list your short-term capital gains and losses. For each asset, fill in the description, acquisition date, sale date, sales price, cost basis, and calculate gain or loss in the respective columns.
After completing Part I, total the sales price and gain/loss amounts at the bottom of this section. Transfer these totals to Schedule D as instructed.
Proceed to Part II for long-term capital gains and losses. Repeat the process of entering details for each asset held over a year, ensuring accuracy in all fields.
Finally, combine your totals from Part II and enter them on Schedule D as required.
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