How to Report Long-Term Gains From Stocks

The reporting of long-term capital gains from stocks involves gathering a few relevant facts followed by some basic arithmetic. Gains are reported on your tax return -- the U.S. Internal Revenue Service 1040 form in Schedule D that's attached. Each stock is reported separately. The gains and losses of every stock are then totaled for the long-term gain to report for tax calculation.

Reporting Stock Details

• 1

  Enter a stock description in column A of Part II on Schedule D.

• 2

  State the stock purchase date in column B of Part II on Schedule D.

• 3

  Record in the next column of Part II on Schedule D the sale date of the stock.

• 4

  Place the purchase price of the stock in the next column of Part II on Schedule D.

• 5

  Insert in column D of Part II on Schedule D the sale proceeds received for the stock after you subtract any commission.

• 6

  Enter the cost of the stock in the next column of Part II on Schedule D.

Reporting the Gain

• 1

  Subtract the cost from the sale proceeds. Record the result in column F of Part II on Schedule D.

• 2

  Total the gains from all stocks and other lines for Part II on Schedule D and enter the result on Line 15.

• 3

  Complete Part III on Schedule D to determine where to report long-term gains from Schedule D on your personal income tax return.