A capital gains worksheet is technically known as Schedule D and is a tax form to calculate capital gains and losses for a given period, according to Terry Lane for the Houston Chronicle. Common items to list on Schedule D include houses, cars, furniture, stocks and bonds.Continue Reading
Taxpayers must pay a tax after selling capital assets, notes Brian Huber for the Houston Chronicle. Capital assets can be either short-term or long-term in nature, depending on how long the taxpayer held them before selling. The Internal Revenue Service defines a capital asset as anything a taxpayer owns. To report items correctly on a capital gains worksheet, a taxpayer must know the basis, or price paid, for the asset and the sale price. The difference between these two figures is the taxable gain or loss.
Items held less than a year are taxed at regular ordinary income tax rates, explains the Internal Revenue Service. In addition, taxpayers experiencing capital losses that exceed capital gains can carry over the loss to the next tax year and report the information on the capital gains worksheet. The capital gains worksheet changes each year, and the Internal Revenue Service specifies the applicable capital gains tax rate to apply to capital assets held for more than one year before sale.Learn more about Taxes