Capital Gains and Losses: Schedule D, Form 8949, and Tax Planning

Categories: Federal Tax, IRS CE
Wishlist Share

About Course

This self-study course provides enrolled agents, CPAs, and tax return preparers with a comprehensive understanding of capital gains and losses taxation. You will learn to identify capital assets under §1221, calculate adjusted basis for purchased, gifted, and inherited property using §1011, §1014, and §1015, and apply the correct holding period rules that determine short-term versus long-term classification for each transaction.

The course covers Form 8949 reporting codes (A through F) and Schedule D netting procedures, the wash sale rule under §1091, the $3,000 annual capital loss limitation, unrecaptured §1250 depreciation at the 25% rate, collectibles at the 28% rate, and the 3.8% net investment income tax under §1411. You will also explore tax planning strategies including tax-loss harvesting, charitable gifting of appreciated assets, installment sales under §453, and Qualified Opportunity Zone investments.

Participants who pass the final examination with a score of 70% or higher will receive a Certificate of Completion awarding 2 CE credit hours in Federal Tax Law Topics — recognized by the IRS for Enrolled Agents, CPAs, AFSP participants, and other registered tax return preparers. CE credits are reported to the IRS upon course completion.

Show More

Related Courses

What Will You Learn?

  • Identify capital assets under §1221 and distinguish them from §1231 assets, inventory, and other non-capital property
  • Calculate adjusted basis for purchased, gifted, and inherited capital assets using §1011, §1014 (stepped-up basis), and §1015 (gift basis)
  • Determine short-term and long-term holding periods and apply the correct preferential capital gain tax rates
  • Complete Form 8949 using the correct reporting codes (A through F) for each transaction category and accurately prepare Schedule D
  • Apply the wash sale rule under §1091, identify disallowed losses, and correctly report deferred losses on Form 8949
  • Calculate capital loss carryforwards and apply the $3,000 annual capital loss limitation for individual taxpayers
  • Identify special capital gain rates: collectibles at 28%, unrecaptured §1250 depreciation at 25%, and the 3.8% NIIT under §1411
  • Apply tax planning strategies including tax-loss harvesting, charitable gifting, installment sales, and Qualified Opportunity Zones

Course Content

Module 1 – Capital Assets: Definitions, Basis, and Holding Periods
Covers the §1221 definition of a capital asset, the key exclusions under §1221(a), short-term vs. long-term holding period rules, adjusted basis for purchased property, gift basis under §1015, and stepped-up basis at death under §1014.

  • Capital Assets: Definitions, Basis, and Holding Periods

Module 2 – Form 8949 and Schedule D: Reporting Capital Transactions
Covers 1099-B reporting requirements, Form 8949 structure and Parts I and II, reporting codes A through F, Schedule D netting rules, the $3,000 capital loss limitation and carryforward, the wash sale rule under §1091, and cost basis accounting methods.

Module 3 – Capital Gain Rates and Special Asset Rules
Covers the 0%/15%/20% long-term capital gain rates, the 3.8% net investment income tax under §1411, collectibles at the 28% rate, unrecaptured §1250 depreciation at 25%, §1231 assets and the look-back rule, §1244 stock ordinary loss treatment, and §1202 QSBS overview.

Module 4 – Tax Planning Strategies for Capital Gains
Covers tax-loss harvesting mechanics and wash sale interaction, timing strategies for bunching gains and losses, charitable gifting of appreciated assets under §170, installment sales under §453, Qualified Opportunity Zone deferral and exclusion, portfolio rebalancing techniques, and the 0% rate planning for low-income years.

Final Assessment – Capital Gains and Losses: Schedule D, Form 8949, and Tax Planning
You have completed a comprehensive review of capital gains and losses, covering capital asset classification, Form 8949 reporting codes, Schedule D netting, wash sale rules, preferential capital gain rates, and planning strategies including tax-loss harvesting and qualified opportunity zone investments. You are now prepared to demonstrate your understanding of the key concepts. The following final examination assesses your knowledge of the material covered in all four modules. A passing score of 70% is required to successfully complete the course.

Scroll to Top