Form Instruction 1040 Line 51 vs. Form 1040 Schedule D 2017-2023

Instructions and Help about Form Instruction 1040 Line 51 vs. Form 1040 Schedule D

So far we've learned what capital gains are how to compute capital gains tax and how to figure out the basis of a capital asset but we really haven't gone into how capital gains are reported on a tax return that's what this video is all about i'm the tax geek back with more of your taxes oversimplified to start out let's look at the reporting document that you're issued when you sell a capital asset at either a gain or a loss the 1099 b this is the irs version of the form but most of the time this information is presented on a consolidated brokerage statement as long as the brokerage statement shows the same information as the official form it's an acceptable substitute we'll examine brokerage statements in detail in another video we're not going to look at all the boxes on this form just the ones that are relevant to most tax paying investors the left side of the form has the usual identifying information for the payer and recipient at the top of the form is the applicable checkbox which gives a code for the type of transaction we'll examine what those codes are a bit later box one shows the details of the transaction describing the property that was sold the dates the property was acquired and then sold how much money was received when the property was sold and for all covered securities the cost or other basis of the asset that was sold for non-covered securities box 1e is often blank if you're unfamiliar with any of these terms i urge you to click on the playlist above to understand the basics of capital gains box 2 indicates whether the game was short term or long term to review long-term gains...