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Advanced Course > Income — Capital Gain or Loss

Income — Capital Gain or Loss

This lesson is designed to teach you how to use Form 1040, Form 8949, and Schedule D, to report capital gains and/or losses on the sale of assets. You will learn how to identify the asset's holding period, adjusted basis, net short-term and long-term capital gains or losses, the taxable gain or deductible loss, and the amount of any capital loss carryover.

This lesson also covers how to report the gain from the sale of a taxpayer's main home.

Click the Skills Workout button to learn more about reporting capital gains and losses.

Skill Check

Check your understanding of capital gains and losses. Indicate whether each of the statements below is true or false by clicking on the correct answer. To check your answers, click the Check My Answers button at the bottom of the page.

  1. Homer bought two blocks of 400 shares of stock, the first in March 2013 for $1,200, and the second in March 2024 for $1,600. In June of 2024, he sold 400 shares for $1,500 without specifying which block of shares he was selling. Homer's sold stock represents a short-term loss of $100.
  • A.
  • B.
  1. Kevin paid his broker a $75 fee on the sale of his stock. His Form 1099-B shows $925, and the box next to net proceeds is checked. The amount Kevin reports as his sales price on Schedule D is $925.
  • A.
  • B.