Form 1120 Schedule D - Capital Gains and Losses
An Overview of Form 1120 Schedule D
- Updated March 07, 2025 - 11.00 AM - Admin, Tax990
Form 1120 Schedule D, Capital Gains, and Losses, is filed alongside Form 990-T and other 1120 forms to report details of capital gains and losses incurred during the tax year.
Read through this article to understand in detail about 1120 Schedule D, when to include it with 990-T, and how to complete it.
Table of Contents
What is Form 1120 Schedule D?
Form 1120 Schedule D, Capital Gains, and Losses, is filed alongside Form 990-T and other 1120 forms to report details of capital gains and losses incurred during the tax year.
When Should I Attach Form 1120 Schedule D with Form 990-T?
Tax-exempt organizations must attach Form 1120 Schedule D with Form 990-T when they are needed to detail capital gains and losses from unrelated business income (UBI).
Unrelated business income refers to any revenue a nonprofit generates from activities unrelated to their primary exempt purposes. Nonprofits must file 990-T when their unrelated business income is $1000 or more during the respective tax year.
How to Complete IRS Form 1120 Schedule D?
The IRS Form 1120 Schedule D (Sales of Business Property) consists of three parts, and here are the instructions for completing each part.
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Basic Information About Your Organization
Initially, you’re required to enter the basic details regarding your organization, including name and employer identification number (EIN).
Indicate whether your organization disposed of any investments in a qualified opportunity fund. If ‘yes’, attach Form 8949 and provide the necessary details.
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Part I – Short-Term Capital Gains and Losses—Assets Held One
Year or LessThis part requires you to provide information on the short-term capital gains and losses of the organization's assets held for a year or less. Provide a breakdown of the proceeds and costs, specify any adjustments made to them, and determine the gain or loss.
Furthermore, you must report short-term capital gain or (loss) from installment sales and like-kind exchanges, unused capital loss carryover, and total short-term capital gain or loss.
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Part II – Long-Term Capital Gains and Losses—Assets Held More Than One Year
This section requires all the details similar to part I but for assets held for more than one year. Provide a breakdown of proceeds, costs or basis, and any adjustments and determine the gain or loss.
Further, include long-term capital gain or (loss) from installment sales, like-kind exchanges, and capital gain distribution. Finally, calculate and report the total long-term capital gain or loss for the reporting period.
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Part III – Summary of Parts I and II
Here, you need to summarize the information provided in both parts. Calculate the net capital gain or loss by combining the excess of short-term and long-term gains or losses and reporting the total.
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