What Is Schedule D?

Schedule D is where you report capital gains and losses from selling investments, real estate, or other assets. Short-term and long-term transactions are reported separately, since they're taxed at different rates. The details of each transaction come from Form 8949, which feeds into Schedule D. The net result — a gain or loss — carries over to your Form 1040. Capital losses beyond gains can offset up to $3,000 of ordinary income per year, with any excess carried forward.