When You Should Use Schedule D

You should use schedule D to report the sale or exchange of capital assets. Most property held for personal purposes, pleasure, or investment is a capital asset. Many transactions that, in previous years, would have been reported on schedule D or D-1 must be reported on Form 8949 if they occur in 2015. Schedule D-1 is no longer in use as Form 8949 replaces it. You must now use Form 8949 to list all capital gain and loss transactions;

The subtotals from this form will then be carried over to schedule D (Form 1040), where gain or loss will be calculated in aggregate. The transactions reportable on this schedule include the following:

• Sales, exchanges, or involuntary conversions of capital asstes
• Capital gain distributions not reported directly on Form 1040
• Nonbusiness bad debts 

You also should use schedule D:

• To figure the overall gain or loss from transactions reported on Form 8949,
• To report certain transactions you don't have to report on Form 8949,
• To report a gain from Form 2439 or Form 6252 or Part I of Form 4797,
• To report a gain or loss from Form 4684, Form 6781, or Form 8824,
• To report a gain or loss from a partnership, S corporation, estate or trust,
• To report capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14), and
• To report a capital loss carryover from 2014 to 2015.

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