Schedule D (Form 1065), Capital Gains and Losses, is the Internal Revenue Service (IRS) schedule a partnership attaches to Form 1065 or Form 8865 to total its short-term and long-term capital gains and losses. It pulls together amounts from Form 8949, installment sales, like-kind exchanges, other partnerships, estates and trusts, and capital gain distributions. On this page you can fill out the 2025 form online on FillingPDF and download or print the completed PDF; the original form and its instructions are published by the IRS at www.irs.gov/Form1065.
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What is Schedule D (Form 1065)?
Schedule D (Form 1065), Capital Gains and Losses, is the IRS schedule a partnership attaches to Form 1065 or Form 8865 to report capital gains and losses from transactions on Form 8949 and from certain transactions it does not have to list on Form 8949.
The schedule has two parts. Part I covers short-term gains and losses, generally on assets held one year or less, and ends at line 7. Part II covers long-term gains and losses, generally on assets held more than one year, and ends at line 15. For applicable partnership interests, the instructions set the long-term holding period at more than 3 years. Line 7 carries to Schedule K, line 8 or 11, and line 15 to Schedule K, line 9a or 11, of Form 1065 or Form 8865.
The form also draws on installment sales (Form 6252), like-kind exchanges (Form 8824), the partnership's share of gains and losses from other partnerships, estates and trusts, and capital gain distributions. The form is identified as OMB No. 1545-0123 and is the 2025 edition.
Schedule D (Form 1065) is not the place for every disposition. The instructions send casualties and thefts to Form 4684, sales of business property to Form 4797, and section 1256 contracts and straddles to Form 6781. Transactions that need detail are listed on Form 8949 first.
Who needs to file Schedule D (Form 1065)?
A partnership that files Form 1065, or a foreign partnership filing Form 8865, attaches Schedule D (Form 1065) when it has capital gains and losses to report. The instructions list what belongs on it:
- totals from transactions reported on Form 8949;
- certain transactions the partnership does not have to report on Form 8949, on lines 1a and 8a;
- capital gains from installment sales on Form 6252;
- gains and losses from like-kind exchanges on Form 8824;
- the partnership's share of net capital gains and losses from other partnerships, estates and trusts;
- capital gain distributions.
The form also asks whether the partnership disposed of any investment in a qualified opportunity fund during the tax year. If the answer is Yes, Form 8949 must be attached.
Do not use this schedule for items the instructions assign to other forms: Form 4684 for involuntary conversions due to casualty or theft, Form 4797 for sales of business property and depreciable property, and Form 6781 for section 1256 contracts and straddles. Traders that made the mark-to-market election report each transaction in Part II of Form 4797 instead of Form 8949.
When to file Schedule D (Form 1065)
Schedule D (Form 1065) has no separate due date: it is attached to Form 1065 or Form 8865 and is filed whenever that return is filed. Complete all necessary pages of Form 8949 first, because lines 1b, 2, 3, 8b, 9 and 10 are totals from that form.
Timing matters in one case the instructions describe. A partnership that wants to elect out of the installment method must report the full gain on a timely filed return, including extensions, for the year of the sale. A partnership that filed on time without making that election may make it on an amended return filed no later than 6 months after the due date of the return, excluding extensions, and must enter "Filed pursuant to section 301.9100-2" at the top of the amended return. For the due date of Form 1065 itself, see the IRS instructions at www.irs.gov/Form1065.
Documents you need
- Form 8949, Sales and Other Dispositions of Capital Assets: complete all necessary pages before lines 1b, 2, 3, 8b, 9 or 10, and attach it if the partnership disposed of a qualified opportunity fund investment.
- Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments: attach it annually when the partnership defers gain invested in a QOF, until the QOF investment is disposed of.
- Statement attached to Form 1065 identifying the replacement QSB stock, showing the basis adjustment for postponed gain under section 1045 and the dates acquired: needed only when the partnership postpones gain on qualified small business stock.
- Statement required under Regulations section 1.1(h)-1(e): attach it only when including gain from the sale of a partnership or trust interest attributable to unrealized appreciation of collectibles.
- Form 6252 and Form 8824: the amounts on lines 4, 5, 11 and 12 come from these forms when the partnership has installment sales or like-kind exchanges.
- Schedule K-1 or other information from the other partnership, estate or trust: used for lines 6 and 13 when the partnership has a share of their capital gains or losses.
How to fill out Schedule D (Form 1065)
Enter the partnership name and EIN
At the top, enter the name of the partnership and its employer identification number (EIN).
Answer the qualified opportunity fund question
Check Yes or No for whether the partnership disposed of any investment in a qualified opportunity fund during the tax year. If Yes, attach Form 8949 and follow its instructions.
Complete Form 8949 first
Finish all necessary pages of Form 8949 before lines 1b, 2, 3, 8b, 9 and 10. Cents may be rounded to whole dollars, but then every amount must be rounded.
Report short-term totals on lines 1a to 3
Line 1a is for short-term transactions with basis reported to the IRS and no adjustments, if you do not put them on Form 8949. Lines 1b, 2 and 3 total Form 8949 with Box A or G, B or H, and C or I checked; enter proceeds in (d), basis in (e), adjustments in (g) and the result in (h).
Figure gain or loss in column (h)
Subtract column (e) from column (d), then combine the result with any column (g) adjustment. Show losses in parentheses.
Enter lines 4 to 6
Line 4 is short-term gain from Form 6252, line 26 or 37. Line 5 is short-term gain or (loss) from Form 8824. Line 6 is the partnership's share from other partnerships, estates and trusts, taken from their Schedule K-1 or other information.
Total Part I on line 7
Combine lines 1a through 6 in column (h). Enter the result on Form 1065, Schedule K, line 8 or 11, or on Form 8865, Schedule K, line 8 or 11.
Report long-term totals on lines 8a to 10
Line 8a mirrors line 1a for long-term transactions. Lines 8b, 9 and 10 total Form 8949 with Box D or J, E or K, and F or L checked.
Enter lines 11 to 13
Line 11 is long-term gain from Form 6252, line 26 or 37. Line 12 is long-term gain or (loss) from Form 8824. Line 13 is the partnership's share of long-term gains and losses from other partnerships, estates and trusts.
Enter capital gain distributions on line 14
Enter the total capital gain distributions paid to the partnership during the year.
Total Part II on line 15
Combine lines 8a through 14 in column (h). Enter the result on Form 1065, Schedule K, line 9a or 11, or on Form 8865, Schedule K, line 9a or 11.
Review and download the completed PDF
Check that totals tie to Form 8949 and that negative amounts are in parentheses. Download or print the completed PDF from FillingPDF and attach it to Form 1065 or Form 8865.
How to submit Schedule D (Form 1065)
Schedule D (Form 1065) is not filed on its own. It goes in with Form 1065 or Form 8865, so it follows whichever channel and address apply to that return.
- With Form 1065 or Form 8865: attach the completed schedule to the return. The form prints no mailing address, portal or appointment rule of its own.
- With other forms: attach Form 8949 when the partnership disposed of a qualified opportunity fund investment or reported transactions on lines 1b, 2, 3, 8b, 9 or 10. Attach Form 8997 annually, as described in its instructions, until the partnership disposes of the QOF investment.
- Instructions and latest information: www.irs.gov/Form1065.
Keep the Form 1099-B, Form 1099-DA or substitute statements that support lines 1a and 8a. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Entering a transaction on line 1a or 8a when the Form 1099-B or Form 1099-DA shows basis was not reported to the IRS; the instructions say to report it on Form 8949 instead.
- Using line 1a or 8a when the reported basis is incorrect or an adjustment is needed; those transactions go on Form 8949.
- Reporting the same transaction on both line 1a or 8a and Form 8949; if you choose line 1a or 8a, the instructions say not to report it on Form 8949.
- Completing lines 1b, 2, 3, 8b, 9 or 10 before finishing all pages of Form 8949.
- Putting a sale of collectibles on line 1a or 8a; the instructions exclude collectibles from those lines and send them to Form 8949, Part II.
- Rounding some amounts to whole dollars and not others; if you round, all amounts must be rounded.
- Leaving negative amounts without parentheses in column (h) and on the totals lines.
- Treating a gain or loss on an applicable partnership interest as long term after only a one-year holding period; the instructions require more than 3 years.
- Reporting sales of business property or casualty and theft losses on Schedule D (Form 1065) instead of Form 4797 or Form 4684.
Frequently asked questions
What is Schedule D (Form 1065)?
Schedule D (Form 1065), Capital Gains and Losses, is the IRS schedule a partnership attaches to Form 1065 or Form 8865. It totals short-term and long-term capital gains and losses, including amounts from Form 8949, installment sales, like-kind exchanges and other partnerships.
What is the difference between line 1a and line 1b?
Line 1a totals short-term transactions whose basis was reported to the IRS, with no adjustments, so they need not go on Form 8949. Line 1b totals transactions that are on Form 8949 with Box A or G checked. Line 8a and line 8b work the same way for long-term transactions.
Do I have to complete Form 8949 before Schedule D (Form 1065)?
Yes, for lines 1b, 2, 3, 8b, 9 and 10. The instructions say to complete all necessary pages of Form 8949 before those lines, since they are totals from that form. Form 8949 is also attached if the partnership disposed of a QOF investment.
Where do the line 7 and line 15 totals go?
Line 7 goes to Form 1065, Schedule K, line 8 or 11, or Form 8865, Schedule K, line 8 or 11. Line 15 goes to Schedule K, line 9a or 11, of either form. Collectibles gain (28% rate gain) is reported on line 9b of Schedule K.
When is Schedule D (Form 1065) due?
It has no due date of its own. It is attached to Form 1065 or Form 8865 and is filed with that return, so the return's due date applies. The IRS instructions are at www.irs.gov/Form1065.
Where do I report the sale of business property?
Not on Schedule D (Form 1065). The instructions direct sales or exchanges of property used in a trade or business, and depreciable or amortizable property, to Form 4797. Casualties and thefts go on Form 4684, and section 1256 contracts on Form 6781.
What changed on Schedule D (Form 1065) for 2025?
The instructions say Codes G, H, I, J, K and L were added to lines 1b, 2, 3, 8b, 9 and 10 so digital asset transactions can be reported. See Form 1099-DA and Form 8949 and their instructions for more information.
Can I fill out Schedule D (Form 1065) online?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file anything with the IRS; the schedule goes in with Form 1065 or Form 8865.
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