Who fills out schedule D on a 1040?

A taxpayer files Schedule D with a Form 1040 if that taxpayer has short-term or long-term capital gains or losses from the sale of assets. Before completing Schedule D, a taxpayer usually must also fill out Form 8949, which includes the details of each transaction, TurboTax notes.

Transactions to list on Schedule D include the sale of capital assets, such as houses, stocks and collectible items. Schedule D provides separate areas to report short-term and long-term gains and losses, which carry different tax rates, explains TurboTax. A taxpayer who reports losses may be able to carry some of the loss amount forward to lower future capital gains taxes.