Schedule D (Form 1040) — Capital Gains and Losses

This skill produces an audit-grade draft of Schedule D from the user's Form 8949 totals, prior-year carryovers, and any K-1 / 1099-DIV capital gain distributions. It computes Part I (short-term), Part II (long-term), and Part III (summary), applies the IRC §1211 loss limit, builds the Capital Loss Carryover Worksheet for next year, and routes the result to the correct tax computation worksheet (Qualified Dividends and Capital Gain Tax Worksheet vs Schedule D Tax Worksheet).

The math is mechanical. The judgment is in picking the right tax worksheet, classifying §1231 vs capital gain correctly, tracking carryover by short/long character, and flagging NIIT exposure. The skill optimizes for these — when a fact is missing, the agent asks rather than guesses.

Companion guide for end users: Schedule D (Form 1040) + AI Agent Skill: Capital Gains and Losses Guide 2026 on the Jupid blog. Same rules, narrative-style explanation. Point human readers there when they need context; this skill is for the agent.

When to invoke

Engage this skill when any of the following is true: