Gains and Losses - Short-Term and Long-Term
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All capital gains (long-term and short-term) are reported on Form 8949 Sales and Other Dispositions of Capital Assets, and Schedule D Capital Gains and Losses is used to calculate a net capital gain or loss. If there is a net gain that is all short-term, then the short-term gain will be taxed at the taxpayer's regular income tax rate. However, if there are long-term losses, these are allowed to offset the short-term gains.

The TaxAct® program uses the dates entered for the purchase and sale of each stock transaction to determine if the gain/loss is either short or long term, and will then transfer that information appropriately to the correct section of the Schedule D. If the time between the purchase and sale is one year or less, the information will transfer to Part I of Schedule D. If the time between purchase and sale is over one year, the information will transfer to Part II of Schedule D.


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