Line 7

Capital Gain or (Loss)

If you sold a capital asset, such as a stock or bond, you must complete and attach Form 8949 and Schedule D.
EXCEPTION 1
You do not have to file Form 8949 or Schedule D if you are not deferring any capital gain by investing in a qualified opportunity fund and both of the following apply.
1. You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements); and
2. None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).
EXCEPTION 2
You must file Schedule D but generally don’t have to file Form 8949 if Exception 1 doesn't apply, you are not deferring any capital gain by investing in a qualified opportunity fund or terminating deferral from an investment in a qualified opportunity fund, and your only capital gains and losses are:
Capital gain distributions;
A capital loss carryover from 2023;
A gain from Form 2439 or 6252 or Part I of Form 4797;
A gain or loss from Form 4684, 6781, or 8824;
A gain or loss from a partnership, S corporation, estate, or trust; or
Gains and losses from transactions for which you received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS, the QOF box in box 3 is not checked, and you don’t need to make any adjustments in column (g) of Form 8949 or enter any codes in column (f) of Form 8949.
If Exception 1 applies, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 7 and check the box on that line. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 7 only the amount that belongs to you. Include a statement showing the full amount you received and the amount you received as a nominee. See the Schedule B instructions for filing requirements for Forms 1099-DIV and 1096.
TAX TIP. If you do not have to file Schedule D, use the Qualified Dividends and Capital Gain Tax Worksheet in the line 16 instructions to figure your tax.

Compiled and edited July 28, 2025 by administrator.
Last reviewed or updated 10:17 AM 8/23/2025 by administrator.