This chapter discusses how to
report capital gains and losses
from sales, exchanges, and other
dispositions of investment
property on Schedule D of Form
1040. The discussion includes:
How to report
short-term gains and
losses,
How to report
long-term gains and
losses,
How to figure
capital loss carryovers,
How to figure your
tax on a net capital
gain, and
An illustrated
example of how to
complete Schedule D.
If you sell or otherwise
dispose of property used in a
trade or business or for the
production of income, see
Publication 544, Sales and Other
Dispositions of Assets, before
completing Schedule D.
Useful Items - You
may want to see:
Publication
537
Installment Sales
544
Sales and Other
Dispositions of Assets
550
Investment Income and
Expenses
Form
(and Instructions)
Schedule D (Form 1040)
Capital Gains and Losses
4797
Sales of Business
Property
6252
Installment Sale Income
8582
Passive Activity Loss
Limitations
Reporting Capital
Gains and Losses
Report capital gains and
losses on Schedule D (Form
1040). Enter your sales and
trades of stocks, bonds, etc.,
and real estate (if required to
be reported and not reported on
another form or schedule) on
line 1 of Part I or line 8 of
Part II, as appropriate. Include
all these transactions even if
you did not receive a Form
1099-B, Proceeds From Broker and
Barter Exchange Transactions, or
Form 1099-S, Proceeds From Real
Estate Transactions (or
substitute statement). You can
use Schedule D-1 as a
continuation schedule to report
more transactions.
Installment
sales.
You cannot use the
installment method to report
a gain from the sale of
stock or securities traded
on an established securities
market. You must report the
entire gain in the year of
sale (the year in which the
trade date occurs).
Passive
activity gains and losses.If you have gains or
losses from a passive
activity, you may also have
to report them on Form 8582.
In some cases, the loss may
be limited under the passive
activity rules. Refer to
Form 8582 and its separate
instructions for more
information about reporting
capital gains and losses
from a passive activity.
Form 1099-B
transactions.
If you sold property, such
as stocks, bonds, or certain
commodities, through a
broker, you should receive
Form 1099-B or equivalent
statement from the broker.
Use the Form 1099-B or the
equivalent statement to
complete Schedule D.
Report the gross proceeds
shown in box 2 of Form
1099-B as the gross sales
price in column (d) of
either line 1 or line 8 of
Schedule D, whichever
applies. However, if the
broker advises you, in box 2
of Form 1099-B, that gross
proceeds (gross sales price)
less commissions and option
premiums were reported to
the IRS, enter that net
sales price in column (d) of
either line 1 or line 8 of
Schedule D, whichever
applies.
If the net amount is
entered in column (d), do
not include the commissions
and option premiums in
column (e).
Form 1099-S
transactions.
If you sold or traded
reportable real estate, you
generally should receive
from the real estate
reporting person a Form
1099-S showing the gross
proceeds.
Reportable
real estate is
defined as any present or
future ownership interest in
any of the following:
Improved or
unimproved land,
including air space,
Inherently
permanent
structures,
including any
residential,
commercial, or
industrial building,
A condominium
unit and its
accessory fixtures
and common elements,
including land, and
Stock in a
cooperative housing
corporation (as
defined in section
216 of the Internal
Revenue Code).
A real
estate reporting person
could include the buyer's
attorney, your attorney, the
title or escrow company, a
mortgage lender, your
broker, the buyer's broker,
or the person acquiring the
biggest interest in the
property.
Your Form 1099-S will show
the gross proceeds from the
sale or exchange in box 2.
Follow the instructions for
Schedule D to report these
transactions and include
them on line 1 or 8 as
appropriate.
Reconciling
Forms 1099 with Schedule D.
Add the following amounts
reported to you for 2004 on
Forms 1099-B and 1099-S (or
on substitute statements):
Proceeds from
transactions
involving stocks,
bonds, and other
securities, and
Gross proceeds
from real estate
transactions (other
than the sale of
your main home if
you had no taxable
gain) not reported
on another form or
schedule.
If this total is more than
the total of lines 3 and 10
of Schedule D, attach a
statement to your return
explaining the difference.
Nominees.
If you receive gross
proceeds as a nominee (that
is, the gross proceeds are
in your name but actually
belong to someone else),
report on Schedule D, lines
3 and 10, only the proceeds
that belong to you. Then add
the following amounts
reported to you for 2004 on
Forms 1099-B and 1099-S (or
substitute statements) that
you are not reporting on
another form or schedule
included with your return:
Proceeds from
transactions
involving stocks,
bonds, and other
securities, and
Gross proceeds
from real estate
transactions (other
than the sale of
your main home if
you are not required
to report it).
If the total of (1) and (2)
is more than the total of
lines 3 and 10, attach a
statement to your return
explaining the reason for
the difference.
File
Form 1099-B or Form 1099-S
with the IRS.
If you received gross
proceeds as a nominee in
2004, you must file a Form
1099-B or Form 1099-S for
those proceeds with the IRS.
Send the Form 1099-B or Form
1099-S with a Form 1096,
Annual Summary and
Transmittal of U.S.
Information Returns, to your
Internal Revenue Service
Center by February 28, 2005
(March 31, 2005, if you file
Form 1099-B or Form 1099-S
electronically). Give the
actual owner of the proceeds
Copy B of the Form 1099-B or
Form 1099-S by January 31,
2005. On Form 1099-B, you
should be listed as the Filer.
The other owner should be
listed as the Recipient.
On Form 1099-S, you should
be listed as the Filer.
The other owner should be
listed as the Transferor.
You do not, however, have to
file a Form 1099-B or Form
1099-S to show proceeds for
your spouse. For more
information about the
reporting requirements and
the penalties for failure to
file (or furnish) certain
information returns, see the
General Instructions for
Forms 1099, 1098, 5498, and
W-2G.
Sale of
property bought at various
times.
If you sell a block of
stock or other property that
you bought at various times,
report the short-term gain
or loss from the sale on one
line in Part I of Schedule D
and the long-term gain or
loss on one line in Part II.
Write Various
in column (b) for the Date
acquired. See
Comprehensive Example later in this
chapter.
Sale
expenses.Add to your cost or
other basis any expense of
sale such as brokers' fees,
commissions, state and local
transfer taxes, and option
premiums. Enter this
adjusted amount in column
(e) of either Part I or Part
II of Schedule D, whichever
applies, unless you reported
the net sales price amount
in column (d).
For more information about
adjustments to basis, see
chapter 14.
Short-term
gains and losses.
Capital gain or loss on
the sale or trade of
investment property held 1
year or less is a short-term
capital gain or loss. You
report it in Part I of
Schedule D. If the amount
you report in column (f) is
a loss, show it in
parentheses.
You combine your share of
short-term capital gains or
losses from partnerships, S
corporations, and
fiduciaries, and any
short-term capital loss
carryover, with your other
short-term capital gains and
losses to figure your net
short-term capital gain or
loss on line 7 of Schedule
D.
Long-term
gains and losses.A capital gain or loss
on the sale or trade of
investment property held
more than 1 year is a
long-term capital gain or
loss. You report it in Part
II of Schedule D. If the
amount you report in column
(f) is a loss, show it in
parentheses.
You also report the
following in Part II of
Schedule D:
Undistributed
long-term capital
gains from a
regulated investment
company (mutual
fund) or real estate
investment trust
(REIT),
Your share of
long-term capital
gains or losses from
partnerships, S
corporations, and
fiduciaries,
All capital gain
distributions from
mutual funds and
REITs not reported
directly on line 10
of Form 1040A or
line 13 of Form
1040, and
Long-term
capital loss
carryovers.
The result after
combining these items with
your other long-term capital
gains and losses is your net
long-term capital gain or
loss (line 15 of Schedule
D).
Capital
gain distributions only.You do not have to file
Schedule D if both of the
following are true.
The only amounts
you would have to
report on Schedule D
are capital gain
distributions from
box 2 of Form
1099-DIV (or
substitute
statement).
You do not have
an amount in box 2b,
2c, or 2d of any
Form 1099-DIV (or
substitute
statement).
If both of the above
statements are true, report
your capital gain
distributions directly on
line 13 of Form 1040 and
check the box on line 13.
Also, use the Qualified
Dividends and Capital Gain
Tax Worksheet in the Form
1040 instructions to figure
your tax.
You can report your
capital gain distributions
on line 10 of Form 1040A,
instead of on Form 1040, if
both of the following are
true.
None of the
Forms 1099-DIV (or
substitute
statements) you
received have an
amount in box 2b,
2c, or 2d.
You do not have
to file Form 1040
for any other
capital gains or
losses.
Total net
gain or loss.
To figure your total net
gain or loss, combine your
net short-term capital gain
or loss (line 7) with your
net long-term capital gain
or loss (line 15). Enter the
result on Schedule D Part
III, line 16. If your losses
are more than your gains,
see Capital Losses, next. If both lines
15 and 16 are gains and line
42 of Form 1040 is more than
zero, see
Capital Gain Tax Rates,
later.
Capital
Losses
If your capital losses
are more than your capital
gains, you can claim a
capital loss deduction.
Report the deduction on line
13 of Form 1040, enclosed in
parentheses.
Limit
on deduction.
Your allowable capital
loss deduction, figured
on Schedule D, is the
lesser of:
$3,000
($1,500 if you
are married and
file a separate
return), or
Your total
net loss as
shown on line 16
of Schedule D.
You can use your total
net loss to reduce your
income dollar for
dollar, up to the $3,000
limit.
Capital
loss carryover.
If you have a total
net loss on line 16 of
Schedule D that is more
than the yearly limit on
capital loss deductions,
you can carry over the
unused part to the next
year and treat it as if
you had incurred it in
that next year. If part
of the loss is still
unused, you can carry it
over to later years
until it is completely
used up.
When you figure the
amount of any capital
loss carryover to the
next year, you must take
the current year's
allowable deduction into
account, whether or not
you claimed it.
When you carry over a
loss, it remains long
term or short term. A
long-term capital loss
you carry over to the
next tax year will
reduce that year's
long-term capital gains
before it reduces that
year's short-term
capital gains.
Figuring your carryover.
The amount of your
capital loss carryover
is the amount of your
total net loss that is
more than the lesser of:
Your
allowable
capital loss
deduction for
the year, or
Your taxable
income increased
by your
allowable
capital loss
deduction for
the year and
your deduction
for personal
exemptions.
If your deductions are
more than your gross
income for the tax year,
use your negative
taxable income in
computing the amount in
item (2).
Complete the Capital
Loss Carryover Worksheet
in Publication 550 to
determine the part of
your capital loss for
2004 that you can carry
over to 2005.
Example.
Bob and Gloria sold
securities in 2004. The
sales resulted in a
capital loss of $7,000.
They had no other
capital transactions.
Their taxable income was
$26,000. On their joint
2004 return, they can
deduct $3,000. The
unused part of the loss,
$4,000 ($7,000 -
$3,000), can be carried
over to 2005.
If their capital loss
had been $2,000, their
capital loss deduction
would have been $2,000.
They would have no
carryover.
Use
short-term losses first.
When you figure your
capital loss carryover,
use your short-term
capital losses first,
even if you incurred
them after a long-term
capital loss. If you
have not reached the
limit on the capital
loss deduction after
using the short-term
capital loss, use the
long-term capital losses
until you reach the
limit.
Decedent's capital loss.A capital loss
sustained by a decedent
during his or her last
tax year (or carried
over to that year from
an earlier year) can be
deducted only on the
final income tax return
filed for the decedent.
The capital loss limits
discussed earlier still
apply in this situation.
The decedent's estate
cannot deduct any of the
loss or carry it over to
following years.
Joint and separate
returns.
If you and your spouse
once filed separate
returns and are now
filing a joint return,
combine your separate
capital loss carryovers.
However, if you and your
spouse once filed a
joint return and are now
filing separate returns,
any capital loss
carryover from the joint
return can be deducted
only on the return of
the person who actually
had the loss.
Capital Gain
Tax Rates
The tax rates that apply
to a net capital gain are
generally lower than the tax
rates that apply to other
income. These lower rates
are called the maximum
capital gain rates.
The term net
capital gain means
the amount by which your net
long-term capital gain for
the year is more than your
net short-term capital loss.
For 2004, the maximum
capital gain rates are 5%,
15%, 25%, or 28%. See Table
17-1 for details.
If you figure your
tax using the maximum
capital gain rates and the
regular tax computation
results in a lower tax, the
regular tax computation
applies.
Example.
All of your net
capital gain is from
selling collectibles, so
the capital gain rate
would be 28%. Because
you are single and your
taxable income is
$25,000, none of your
taxable income will be
taxed above the 15%
rate. The 28% rate does
not apply.
Investment interest
deducted. If you
claim a deduction for
investment interest, you
may have to reduce the
amount of your net
capital gain that is
eligible for the capital
gain tax rates. Reduce
it by the amount of the
net capital gain you
choose to include in
investment income when
figuring the limit on
your investment interest
deduction. This is done
on the Schedule D Tax
Worksheet or the
Qualified Dividends and
Capital Gain Tax
Worksheet. For more
information about the
limit on investment
interest, see chapter 3
of Publication 550.
Table 17-1. What Is
Your Maximum Capital
Gain Rate?
IF your
net capital
gain is from
...
THEN your
maximum
capital
gain rate is
...
Collectibles
gain
28%
Gain on
qualified
small
business
stock equal
to the
section 1202
exclusion
28%
Unrecaptured
section 1250
gain
25%
Other gain,
1
and the
regular tax
rate that
would apply
is 25% or
higher
15%
Other gain,
1
and the
regular tax
rate that
would apply
is lower
than 25%
5%
1
Other gain
means any
gain that is
not
collectibles
gain, gain
on qualified
small
business
stock, or
unrecaptured
section 1250
gain.
Collectibles gain or
loss. This is gain
or loss from the sale or
trade of a work of art,
rug, antique, metal
(such as gold, silver,
and platinum bullion),
gem, stamp, coin, or
alcoholic beverage held
more than 1 year.
Gain on
qualified small business
stock.If you realized a
gain from qualified
small business stock
that you held more than
5 years, you generally
can exclude one-half of
your gain from income.
The taxable part of your
gain equal to your
section 1202 exclusion
is a 28% rate gain. See
Gains on Qualified
Small Business Stock
in chapter 4
of Publication 550.
Unrecaptured section
1250 gain.Generally, this is
any part of your capital
gain from selling
section 1250 property
(real property) that is
due to depreciation (but
not more than your net
section 1231 gain),
reduced by any net loss
in the 28% group. Use
the Unrecaptured Section
1250 Gain Worksheet in
the Schedule D
instructions to figure
your unrecaptured
section 1250 gain. For
more information about
section 1250 property
and section 1231 gain,
see chapter 3 of
Publication 544.
Tax
computation using
maximum capital gains
rates. Use the
Qualified Dividends and
Capital Gain Tax
Worksheet or the
Schedule D Tax Worksheet
(whichever applies) to
figure your tax if you
have qualified dividends
or net capital gain. You
have net capital gain if
Schedule D, lines 15 and
16, are both gains.
Schedule D Tax
Worksheet.
You must use the
Schedule D Tax Worksheet
in the Schedule D
instructions to figure
your tax if:
You have to
file Schedule D,
and
Schedule D,
line 18 (28%
rate gain) or
line 19
(unrecaptured
section 1250
gain), is more
than zero.
See
Comprehensive
Example,
later, for an example of
how to figure your tax
using the Schedule D Tax
Worksheet.
Qualified Dividends and
Capital Gain Tax
Worksheet. If
you do not have to use
the Schedule D Tax
Worksheet (as explained
above) and any of the
following apply, use the
Qualified Dividends and
Capital Gain Tax
Worksheet in the
instructions for Form
1040 or Form 1040A
(whichever you file) to
figure your tax.
You received
qualified
dividends. (See
Qualified
Dividends
in chapter 9.)
You do not
have to file
Schedule D and
you received
capital gain
distributions.
(See
Capital gain
distributions
only
earlier.)
Schedule D,
lines 15 and 16,
are both more
than zero.
Comprehensive
Example
Emily Jones is single and, in
addition to wages from her job,
she has income from stocks and
other securities. For the 2004
tax year, she had the following
capital gains and losses, which
she reports on Schedule D. All
the Forms 1099 she received
showed net sales prices. Her
filled-in Schedule D is shown in
this chapter.
Capital
gains and losses Schedule
D. Emily sold stock in
two different companies that
she held for less than a
year. In June, she sold 100
shares of Trucking Co. stock
that she had bought in
February. She had an
adjusted basis of $650 in
the stock and sold it for
$900, for a gain of $250. In
July, she sold 25 shares of
Computer Co. stock that she
bought in June. She had an
adjusted basis in the stock
of $2,500 and she sold it
for $2,000, for a loss of
$500. She reports these
short-term transactions on
line 1 in Part I of Schedule
D.
Emily had three other
stock sales that she reports
as long-term transactions on
line 8 in Part II of
Schedule D. In February, she
sold 60 shares of Car Co.
for $2,100. She had
inherited the Car Co. stock
from her father. Its fair
market value at the time of
his death was $2,500, which
became her basis. Her loss
on the sale is $400. Because
she had inherited the stock,
her loss is a long-term
loss, regardless of how long
she and her father actually
held the stock. She enters
the loss in column (f) of
line 8.
In June, she sold 500
shares of Furniture Co.
stock for $14,000. She had
bought 100 of those shares
in 1993, for $1,000. She had
bought 100 more shares in
1995 for $2,200, and an
additional 300 shares in
1998 for $1,500. Her total
basis in the stock is
$4,700. She has a $9,300
($14,000 - $4,700) gain on
this sale, which she enters
in column (f) of line 8.
In December, she sold 20
shares of Toy Co. for
$4,100. This was qualified
small business stock that
she had bought in September
1999. Her basis is $1,100,
so she has a $3,000 gain
which she enters in column
(f) of line 8. Because she
held the stock more than 5
years, she has a $1,500
section 1202 exclusion. She
claims the exclusion on the
line below by entering
$1,500 as a loss in column
(f). She also enters the
exclusion as a positive
amount on line 2 of the 28%
Rate Gain Worksheet.
She received a Form 1099-B
(not shown) from her broker
for each of these
transactions.
Reconciliation of Forms
1099-B. Emily makes
sure that the total of the
amounts reported in column
(d) of lines 3 and 10 of
Schedule D is not less than
the total of the amounts
shown on the Forms 1099-B
she received from her
broker. For 2004, the total
is $23,100.
Capital
loss carryover from 2003.
Emily has a capital loss
carryover to 2004 of $800,
of which $300 is short-term
capital loss, and $500 is
long-term capital loss. She
enters these amounts on
lines 6 and 14 of Schedule
D. She also enters the $500
long-term capital loss
carryover on line 5 of the
28% Rate Gain Worksheet. Her
filled-in 28% Rate Gain
Worksheet is shown below.
She kept the completed
Capital Loss Carryover
Worksheet (not illustrated)
in her 2003 edition of
Publication 550, so she
could properly report her
loss carryover for the 2004
tax year without refiguring
it.
Tax
computation.
Because Emily has gains on
both lines 15 and 16 of
Schedule D, she checks the Yes
box on line 17 and goes to
line 18. On line 18 she
enters $450 from line 7 of
the 28% Rate Gain Worksheet.
Because line 18 is greater
than zero, she checks the No
box on line 20 and uses the
Schedule D Tax Worksheet to
figure her tax.
After entering the gain
from line 16 on line 13 of
her Form 1040, she completes
the rest of Form 1040
through line 42. She enters
the amount from that line,
$30,000, on line 1 of the
Schedule D Tax Worksheet.
After filling out the rest
of that worksheet, she
figures her tax is $3,352.
This is less than the $4,244
tax she would have figured
without the capital gain tax
rates.
28% Rate Gain
Worksheet for Emily
JonesLine 18
Keep for your
Records
1.
Enter the
total of all
collectibles
gain or
(loss) from
items you
reported on
line 8,
column (f),
of Schedules
D and D-1
1.
0
2.
Enter as a
positive
number the
amount of
any section
1202
exclusion
you reported
on line 8,
column (f),
of Schedules
D and D-1
2.
1,500
3.
Enter the
total of all
collectibles
gain or
(loss) from
Form 4684,
line 4 (but
only if Form
4684, line
15, is more
than zero);
Form 6252;
Form 6781,
Part II; and
Form 8824
3.
4.
Enter the
total of any
collectibles
gain
reported to
you on:
Form
1099-DIV,
box
2d;
Form
2439,
box
1d;
and
Schedule
K-1
from
a
partnership,
S
corporation,
estate,
or
trust.
4.
5.
Enter your
long-term
capital loss
carryovers
from
Schedule D,
line 14, and
Schedule K-1
(Form 1041),
line 13c
5.
(500)
6.
If Schedule
D, line 7,
is a (loss),
enter that
(loss) here.
Otherwise,
enter -0-
6.
(550)
7.
Combine
lines 1
through 6.
If zero or
less, enter
-0-. If more
than zero,
also enter
this amount
on Schedule
D, line 18
7.
450
Schedule D Tax Worksheet
Keep for your
Records
Complete this
worksheet only
if line 18 or
line 19 of
Schedule D is
more than zero.
Otherwise,
complete the
Qualified
Dividends and
Capital Gain Tax
Worksheet on
page 34 of the
Instructions for
Form 1040 to
figure your tax.
Exception: Do
not
use the
Qualified
Dividends and
Capital Gain Tax
Worksheet
or
this worksheet
to figure your
tax if:
Line
15 or
line 16
of
Schedule
D is
zero or
less
and
you have
no
qualified
dividends
on Form
1040,
line 9b,
or
Form
1040,
line 42,
is zero
or less.
Instead, see the
instructions for
Form 1040, line
43.
1.
Enter your
taxable income
from Form 1040,
line 42
1.
30,000
2.
Enter your
qualified
dividends from
Form 1040, line
9b
2.
3.
Enter the amount
from Form 4952,
line 4g
3.
4.
Enter the amount
from Form 4952,
line 4e*
4.
5.
Subtract line 4
from line 3. If
zero or less,
enter -0-
5.
6.
Subtract line 5
from line 2. If
zero or less,
enter -0-
6.
7.
Enter the
smaller
of line 15 or
line 16 of
Schedule D
7.
9,350
8.
Enter the
smaller
of line 3 or
line 4
8.
9.
Subtract line 8
from line 7. If
zero or less,
enter -0-
9.
9,350
10.
Add lines 6 and
9
10.
9,350
11.
Add lines 18 and
19 of Schedule D
11.
450
12.
Enter the
smaller
of line 9 or
line 11
12.
450
13.
Subtract line 12
from line 10.
13.
8,900
14.
Subtract line 13
from line 1. If
zero or less,
enter -0-.
14.
21,100
15.
Enter the
smaller
of:
The amount on
line 1
or
$29,050 if
single or
married filing
separately;
$58,100 if
married filing
jointly or
qualifying
widow(er); or
$38,900 if head
of household
15.
29,050
16.
Enter the
smaller
of line 14 or
line 15
16.
21,100
17.
Subtract line 10
from line 1. If
zero or less,
enter -0-
17.
20,650
18.
Enter the
larger
of line 16 or
line 17
18.
21,100
If lines 15 and
16 are the same,
skip lines 19
and 20 and go to
line 21.
Otherwise, go to
line 19.
19.
Subtract line 16
from line 15
19.
7,950
20.
Multiply line 19
by 5% (.05)
20.
398
If lines 1 and
15 are the same,
skip lines 21
through 33 and
go to line 34.
Otherwise, go to
line 21.
21.
Enter the
smaller
of line 1 or
line 13
21.
8,900
22.
Enter the amount
from line 19 (if
line 19 is
blank, enter
-0-)
22.
7,950
23.
Subtract line 22
from line 21. If
zero or less,
enter -0-
23.
950
24.
Multiply line 23
by 15% (.15)
24.
143
If Schedule D,
line 19, is zero
or blank, skip
lines 25 through
30 and go to
line 31.
Otherwise, go to
line 25.
25.
Enter the
smaller
of line 9 above
or Schedule D,
line 19
25.
26.
Add lines 10 and
18
26.
27.
Enter the amount
from line 1
above
27.
28.
Subtract line 27
from line 26. If
zero or less,
enter -0-
28.
29.
Subtract line 28
from line 25. If
zero or less,
enter -0-
29.
30.
Multiply line 29
by 25% (.25)
30.
If Schedule D,
line 18, is zero
or blank, skip
lines 31 through
33 and go to
line 34.
Otherwise, go to
line 31.
31.
Add lines 18,
19, 23, and 29
31.
30,000
32.
Subtract line 31
from line 1
32.
0
33.
Multiply line 32
by 28% (.28)
33.
0
34.
Figure the tax
on the amount on
line 18.
Use the Tax
Table or Tax
Computation
Worksheet,
whichever
applies
34.
2,811
35.
Add lines 20,
24, 30, 33, and
34
35.
3,352
36.
Figure the tax
on the amount on
line 1.
Use the Tax
Table or Tax
Computation
Worksheet,
whichever
applies
36.
4,244
37.
Tax on all
taxable income
(including
capital gains
and qualified
dividends).
Enter the
smaller
of line 35 or
line 36. Also
enter this
amount on Form
1040, line 43
37.
3,352
*If applicable,
enter instead
the smaller
amount you
entered on the
dotted line next
to line 4e of
Form 4952.
