Form 1040 Schedule D-1: Capital Gains and Losses Continuation Sheet (2017)

Schedule D-1 (Form 1040) used to be a continuation sheet for capital gains and losses. When you had more stock, bond, mutual fund, or other investment sales than would fit on Schedule D, you’d list the extra trades on Schedule D-1 and carry the totals back to Schedule D.

That changed starting with the 2011 tax year.

For 2017 returns, Schedule D-1 no longer exists and cannot be filed. It was fully replaced by Form 8949, Sales and Other Dispositions of Capital Assets. So even though you might still see old references to Schedule D-1, it is not used for 2017 or any later year.

Instead, all your detailed capital transaction reporting is done on Form 8949, and only summary totals flow to Schedule D.

When You’d Use It (Short Answer: You Don’t, for 2017)

For 2017 tax returns—original, late, or amended—there is no situation where you should use Schedule D-1. The proper setup is:

• 2011 and later years (including 2017):
  • Use Form 8949 to list each sale or exchange of capital assets.
  • Transfer subtotals to Schedule D for the overall capital gain or loss.
• 2010 and earlier years:
  • You may still see Schedule D-1 in play for late or amended returns for those years.
  • In that case, you’d use the old versions of Schedule D and Schedule D-1 that applied to that specific year.

If you’re amending a 2017 return (Form 1040-X) to correct capital gains or losses, you’ll:

1. Prepare revised Forms 8949 showing the corrected transactions.
2. Prepare a corrected Schedule D reflecting the new totals.
3. Attach both to your Form 1040-X.

The 2017 Schedule D instructions are explicit: “Complete all necessary pages of Form 8949 before you complete line 1b, 2, 3, 8b, 9, or 10 of Schedule D.”

What Replaced Schedule D-1: Form 8949 and Schedule D

Since Schedule D-1 is gone, the key is knowing how Form 8949 and Schedule D now work together.

Form 8949 – Detailed Transaction Listing

Form 8949 replaced Schedule D-1 and does the heavy lifting:

• Part I – Short-term capital gains and losses (assets held 1 year or less).
• Part II – Long-term capital gains and losses (assets held more than 1 year).

Each transaction gets its own line, with:

• Description of the property (e.g., “100 sh. XYZ Corp”)
• Date acquired
• Date sold
• Sales proceeds
• Cost or other basis
• Codes and adjustment amounts (if needed) for things like corrected basis, wash sales, or other adjustments

You also must check a box (A, B, C, D, E, or F) at the top of each section to show:

• Whether the sale was reported on Form 1099-B, and
• Whether the basis was reported to the IRS.

This extra detail is exactly why Schedule D-1 was retired—Form 8949 gives the IRS enough information to match broker reports and your return.

You can attach as many pages of Form 8949 as needed. There is no separate “continuation sheet”; extra pages of Form 8949 serve that purpose.

Schedule D – Summary and Tax Calculation

Once Forms 8949 are complete, you:

• Bring your short-term totals to Schedule D Part I (lines such as 1b, 2, 3).
• Bring your long-term totals to Schedule D Part II (lines 8b, 9, 10).

Schedule D then:

• Nets all gains and losses,
• Applies the $3,000 capital loss limit (or $1,500 if married filing separately),
• Helps determine which portion of your income qualifies for preferential long-term capital gain rates.

The final net capital gain or loss then flows to your Form 1040.

How to Report 2017 Capital Gains and Losses (High-Level Steps)

For a 2017 return with many trades, here’s the correct workflow:

1. Gather your documents
   • All Forms 1099-B from brokers
   • Brokerage statements
   • Records of basis (including reinvested dividends, stock splits, return of capital, etc.)
2. Sort your transactions
   • Short-term vs. long-term based on holding period
   • By whether basis was reported to the IRS on Form 1099-B
3. Complete Form 8949
   • Use separate pages for each box category (A, B, C for short-term; D, E, F for long-term).
   • Enter each sale with full details and any necessary adjustments.
4. Subtotal each Form 8949 page
   • Add proceeds, basis, adjustments, and gains/losses at the bottom of each page.
5. Transfer totals to Schedule D
   • Enter the combined subtotals on the appropriate lines (1b/2/3 for short-term, 8b/9/10 for long-term).
6. Finish Schedule D
   • Compute net short-term and net long-term gains/losses.
   • Apply the capital loss limit and complete any required worksheets.
7. Attach everything to Form 1040
   • Attach Schedule D and all required Forms 8949 to your 2017 Form 1040 (or 1040-X, if amending).

Common Pitfalls (Now That D-1 Is Gone)

Even though Schedule D-1 is out of the picture, some mistakes are still very common:

• Trying to use Schedule D alone
  Many taxpayers try to list all transactions directly on Schedule D. For 2017, most sales must first go on Form 8949, with only totals on Schedule D.
• Looking for a “continuation sheet”
  There is no separate continuation sheet. If you run out of space, you simply attach more Form 8949 pages.
• Not checking the correct box (A–F)
  Misclassifying whether basis was reported, or whether a 1099-B was issued, causes mismatches in IRS systems.
• Omitting small or loss transactions
  The IRS gets your full 1099-B from brokers. Leaving out “small” trades still causes mismatch notices.
• Misclassifying short-term vs. long-term
  Remember:
  • Holding period starts the day after you acquire the asset.
  • A sale exactly one year later is short-term; you need more than one year for long-term.

Quick FAQs

Can I file Schedule D-1 for 2017 if I prefer the old way?
No. For 2017 (and all years from 2011 onward), the IRS no longer accepts Schedule D-1. You must use Form 8949 plus Schedule D.

I’m amending a 2010 return—do I still use Schedule D-1?
Yes, if you need more space for individual transactions on a 2010 or earlier return, you use the old Schedule D and Schedule D-1 for that specific year.

If I have hundreds of trades, do I still have to list them all?
Usually yes, but for some 1099-B transactions with basis reported and no adjustments, you may be allowed to report totals directly on Schedule D (lines 1a/8a) instead of listing each one on Form 8949. The 2017 instructions explain when that shortcut is allowed.

What if my 1099-B basis is wrong?
For 2017, you report the correct basis on Form 8949 and use the adjustment columns and codes to explain the difference. That’s one of the main reasons Form 8949 replaced Schedule D-1.

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