In addition to the information flowing from Forms 1099-B entered in the Schedule D menu in Keystone Tax Solutions Pro, there are other lines on Schedule D and related worksheets that may need direct entry. To access these other lines, from the Main Menu of the tax return (Form 1040) select:
- Capital Gain Loss (Sch D)
- Other button
Additional Capital Gain Distributions – Enter on this line capital gain distributions that aren’t entered elsewhere in the return, e.g., on a 1099-DIV. There are two entries possible:
- Additional Capital Gain Distributions – Flows to Schedule D Line 13;
- Additional Capital Gain Distributions 28% Column – Flows to the 28% Rate Gain Worksheet Line 4.
Short Term 1099-B Transactions with No Adjustments – As an alternative to entering separate 1099-Bs (and substitute statements), the aggregate short-term 1099-Bs can be entered here if they meet the following criteria:
- The 1099-B shows basis reported to the IRS and shows no adjustments in Boxes 1f or 1g;
- The “Ordinary” box is not checked in Box 2;
- The “QOF” box is not checked in Box 3;
- The taxpayer isn’t electing to defer QOF income or terminating deferral of QOF income;
- There are no other adjustments to the basis or gain/loss on the 1099-B.
Enter the aggregate sales price first, then the aggregate cost. The amounts flow to Schedule D Line 1a
Long Term 1099-B Transactions with No Adjustments – Same as above but for long-term 1099-Bs. The amounts flow to Schedule D Line 8a.
Short Term Gain/Loss Like-Kind Exchange – The amount entered here goes to Schedule D Line 4 and is the total of short-term like-kind gains from 6252 plus short-term gains and losses from Forms 4684, 6781, and 8824.
Long Term Gain/Loss Like-Kind Exchange – The amount entered here goes to Schedule D Line 11 and is the total of long-term like-kind gains from Form 4797 Part I; long-term gains from Forms 2439 and 6252; and long-term gains or losses from Forms 4684, 6781, and 8824.
Also queried is the total of all collectibles gain or loss from Form 4684, line 4 (assuming an overall gain on Form 4684 Line 15); Form 6252; Form 6781, Part II; and Form 8824.
Long Term Like-Kind Exchange 28% Rate Amount – The amount entered here goes to the 28% Rate Gain Worksheet Line 3.
Short Term Loss Carryover from [prior year] – The amount entered here goes to Schedule D Line 6 and is the short-term capital loss carryover from the prior year. Use the Capital Loss Carryover Worksheet in the Schedule D instructions if necessary.
Long Term Loss Carryover from [prior year] – The amount entered here goes to Schedule D Line 14 and is the long-term capital loss carryover from the prior year. Use the Capital Loss Carryover Worksheet in the Schedule D instructions if necessary.
Form 6781 – Gains/Losses from Sec 1256 Gains & Straddles – Select this to complete Form 6781, Gains and Losses From Section 1256 Contracts and Straddles. See here for more information.
Sale of Main Home Worksheet – Complete this worksheet to determine the amount that can be excluded from income from the sale of the taxpayer’s main home. See here for more information.
Adjust 28% Rate/1250 Worksheets – The 28% Rate Gain Worksheet and the Unrecaptured Section 1250 Gain Worksheet are produced automatically as needed with information provided elsewhere on the return, however each worksheet has several lines that may need direct editing. See here for more information.
Form 8997 – Qualified Opportunity Fund Investments Statement – Use this menu to complete Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments. This form is used to inform the IRS of the QOF investments and deferred gains held at the beginning and end of the current tax year, deferred capital gains related to QOF investments, and dispositions of QOF investments during the year. See here for more information.
Disposed of Qualified Opportunity Fund Investments – Answer YES to the confirmation question if any QOF investments were disposed of during the year. The IRS will be expecting to see entries related to the disposition on Form 8949 as well as Form 8997.
Is Schedule D Required? – Schedule D isn’t required when the only capital gain distribution(s) reported is on 1099-DIV box 2a, and boxes 2b, 2c, and 2d are zero. In that case, this line will indicate NO and the check box on Form 1040 Line 6 indicating that Schedule D isn’t required will be checked (in 2018, the check box is on Schedule 1 (Form 1040) Line 13), and Schedule D won’t print with the print sets. It will still be available for printing under View Results, if desired. Select this line to change it from NO to YES if desired. Otherwise, when this line automatically displays YES it is unchangeable.
Attach PDF Document – obsolete
Note: This is a guide to entering information on Schedule D in Keystone Tax Solutions Pro. This is not intended as tax advice.