Form 1040 Schedule D-1: Capital Gains and Losses Continuation Sheet (Historical Reference – Not Used Since 2010)

What the Form Is For

Important Note: Schedule D-1 (Form 1040) has not been used since the 2010 tax year. Beginning with the 2011 tax year, the IRS replaced Schedule D-1 with Form 8949 (Sales and Other Dispositions of Capital Assets). For the 2023 tax year, taxpayers should use Form 8949, not Schedule D-1.

Historically, Schedule D-1 served as a continuation sheet for taxpayers who ran out of space on the main Schedule D (Form 1040). Schedule D is the primary form for reporting capital gains and losses—profits or losses from selling investments like stocks, bonds, mutual funds, or real estate. When taxpayers had numerous transactions and couldn't fit all the details on Schedule D's limited lines, they used Schedule D-1 to list additional transactions in the same format.

According to the 2011 Instructions for Schedule D, "Schedule D-1 is no longer in use. Form 8949 replaces it." The IRS made this change to improve reporting accuracy and require more detailed information about each capital asset transaction, particularly regarding cost basis and broker-reported information.

When You’d Use It (Late/Amended Returns)

Since Schedule D-1 doesn't exist for 2023, this section addresses historical context only.

For tax years 2010 and earlier, taxpayers would have used Schedule D-1 when:

• Filing an original return with more capital gains and losses than could fit on Schedule D's limited lines
• Filing an amended return (Form 1040-X) to correct or add capital asset transactions from 2010 or earlier

For 2023 tax matters: If you're filing a late or amended 2023 return involving capital gains and losses, you must use Form 8949 and Schedule D—never Schedule D-1. The last year Schedule D-1 was valid was 2010. According to IRS Publication 550 (2011), "For 2011 transactions, Schedule D-1 is no longer in use. Form 8949 replaces it."

Key Rules or Details for Historical Use

Historical Schedule D-1 Rules (2010 and earlier)

• Used the same column format as Schedule D
• Required listing each transaction separately with date acquired, date sold, sales price, cost basis, and gain or loss
• Totals from Schedule D-1 carried forward to specific lines on Schedule D
• Had separate sections for short-term (one year or less) and long-term (more than one year) transactions

Current Requirements (2023)

According to the 2023 Instructions for Schedule D, taxpayers must now complete Form 8949 before filling out Schedule D. Form 8949 provides three key improvements over the old Schedule D-1:

1. Requires checking boxes indicating whether transactions were reported on Form 1099-B and whether basis was reported to the IRS
2. Allows specific adjustment codes in column (f) for situations like wash sales, inherited property, or nontaxable exchanges
3. Provides column (g) for entering adjustments to gains or losses

Step-by-Step (High Level)

Step-by-Step Filing Process for 2023 Returns

(Schedule D-1 does not apply)

Step 1: Gather Broker Forms

Collect all Forms 1099-B and records of capital asset sales.

Step 2: Complete Form 8949

Form 8949 includes Parts I (short-term) and II (long-term). Check boxes A–F based on Form 1099-B reporting.

Step 3: List Each Transaction

Enter description, acquisition date, sale date, proceeds, cost basis, and adjustments.

Step 4: Total and Carry to Schedule D

Combine totals from all Forms 8949 and transfer them to Schedule D.

Step 5: Complete Schedule D

Calculate your combined capital gain or loss and apply any special rules.

Common Mistakes and How to Avoid Them

Mistake #1: Looking for Schedule D-1 for a 2023 Return

Schedule D-1 has been discontinued since 2010. Use Form 8949 instead.

Mistake #2: Skipping Form 8949 and Going Straight to Schedule D

Form 8949 is required for nearly all capital asset transactions since 2011.

Mistake #3: Mixing Up Transaction Categories

Check the correct A–F box based on whether the broker reported the basis.

Mistake #4: Failing to Make Necessary Adjustments

Form 8949 requires adjustment codes and amounts for many situations.

Mistake #5: Not Keeping Transaction Records

Maintain documentation for basis, reinvested dividends, splits, etc.

What Happens After You File

IRS Processing for 2023 Returns

• The IRS matches Form 8949 data against broker-reported Forms 1099-B.
• If everything matches, you receive a refund or notice of acceptance.
• If discrepancies exist, the IRS may issue a CP2000 notice requesting clarification.

FAQs

Can I still use Schedule D-1 if I have a lot of stock transactions?

No. Schedule D-1 was discontinued after the 2010 tax year. Use Form 8949.

What's the difference between Schedule D-1 and Form 8949?

Schedule D-1 was only an overflow sheet. Form 8949 requires more detailed reporting.

Where do I find Schedule D-1 for my 2023 taxes?

You won’t—Schedule D-1 hasn’t existed since 2011. Use Form 8949 and Schedule D.

I'm amending a 2010 return. Should I use Schedule D-1 or Form 8949?

Use the 2010 version of Schedule D-1 if you need more space.

My tax preparer mentioned Schedule D-1. Are they using outdated information?

Possibly. All returns from 2011 onward must use Form 8949.

Do I need to file Form 8949 if I only have a few stock sales?

Generally yes—Form 8949 is required for any capital asset sale.

My broker didn't provide cost basis on my 1099-B. What do I do?

You must determine your own basis and report the transaction on Form 8949 using box C or F.