Schedule D (Form 1120S) - Capital Gains and Losses and Built-In Gains - 97

Sep 19, 2026

Schedule D (Form 1120S) provides structured reporting for corporate capital gains and losses, including short-term and long-term transactions, along with built-in gains taxation. The form includes sections for calculating gains or losses per property, aggregating results, and determining applicable tax amounts. It also covers 28% rate gain rules, section 1231 gain inputs, and the computation of excess recognized built-in gains over losses, with resulting tax figures to be carried to Form 1120S.

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Schedule D (Form 1120S)

Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less

Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year

Part III Capital Gains Tax

Built-In Gains Tax

| Main Menu | Product Index | Find Word | Search Products | IRS CD Help | | --- | --- | --- | --- | --- | SCHEDULE D (Form 1120S) Department of the Treasury Internal Revenue Service Capital Gains and Losses and Built-In Gains © Attach to Form 1120S. © See separate instructions. OMB No. 1545-0130 97 | Name | Employer identification number
| | --- | --- | Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less | (a) Description of property (Example, 100 shares of “Z” Co.) | (b) Date
acquired
(mo. , day, yr.) | (c) Date sold
(mo. , day, yr.) | (d) Sales price | (e) Cost or
other basis
(see instructions) | | (f) Gain or (loss) for
entire year
((d) minus (e)) | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | 2 Short-term capital gain from installment sales from Form 6252, line 26 or 37
3 Short-term capital gain or (loss) from like-kind exchanges from Form 8824
4 Combine lines 1 through 3 in column (f) and enter here
5 Tax on short-term capital gain included on line 32 below
6 Net short-term capital gain or (loss) . Combine lines 4 and 5. Enter here and on Form 1120S, Schedule K, line 4d or 6 | | | | | 2 | | | | | | | | | 3 | | | | | | | | | 4 | | | | | | | | | 5 | ( ) | | | | | | | | 6 | | | Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year | (a) Description of property (Example, 100 shares of “Z” Co.) | (b) Date
acquired
(mo. , day, yr.) | (c) Date sold
(mo. , day, yr.) | (d) Sales price | (e) Cost or
other basis
(see instructions) | | (f) Gain or (loss) for
entire year
((d) minus (e)) | (g) 28% rate gain
*(seeoirnotrs)elow) | | --- | --- | --- | --- | --- | --- | --- | --- | | 7 | | | | | | | | | | | | | | | | | | | | | | | | | | | 8 Long-term capital gain from installment sales from Form 6252, line 26 or 37
9 Long-term capital gain or (loss) from like-kind exchanges from Form 8824
10 Combine lines 7 through 9 in column (f) and enter here
11 Tax on long-term capital gain included on lines 24 and 32 below
12 Combine lines 7 through 11 in column (g) . Enter here and on Form 1120S, Schedule K, line 4e(1) or 6
13 Net long-term capital gain or (loss) . Combine lines 10 and 11 in column (f). Enter here and on Form 1120S, Schedule K, line 4e(2) or 6 | | | | | 8 | | | | | | | | | 9 | | | | | | | | | 10 | | | | | | | | | 11 | ( ) | ( ) | | | | | | | 12 | | | | | | | | | 13 | | | * 28% rate gain or (loss) includes all gains and losses in Part II, column (f) from sales, exchanges, or conversions (including installment payments received) either: c Before May 7, 1997, or c After July 28, 1997, for assets held more than 1 year but not more than 18 months. It also includes ALL “collectibles gains and losses” (as defined in the instructions). Part III Capital Gains Tax (See instructions before completing this part.) | 14 Enter section 1231 gain from Form 4797, line 9, column (g)
15 Net long-term capital gain or (loss). Combine lines 10 and 14 Note: If the corporation is liable for the excess net passive income tax (Form 1120S, page 1, line 22a) orthe built-in gains tax (Part IV below), see the line 16 instructions before completing line 16.
16 Net capital gain. Enter excess of net long-term capital gain (line 15) over net short-term capital loss (line 4)
17 Statutory minimum
18 Subtract line 17 from line 16
19 Enter 34% of line 18
20 Taxable income (attach computation schedule)
21 Enter tax on line 20 amount (attach computation schedule)
22 Net capital gain from substituted basis property (attach computation schedule)
23 Enter 35% of line 22
24 Tax. Enter the smallest of line 19, 21, or 23 here and on Form 1120S, page 1, line 22b | 14 | | | --- | --- | --- | | | 15 |

FAQs

What does Schedule D (Form 1120S) calculate?

It calculates capital gains and losses and built-in gains tax amounts for the corporation. Results from short-term and long-term sections flow into the capital gains tax computation and built-in gains tax section.

How is the 28% rate gain treated in Part II?

Part II includes a column for 28% rate gain. The instructions specify that it includes gains and losses in Part II column (f) for certain sales, exchanges, or conversions and collectible gains and losses.

What inputs are used for Part III Capital Gains Tax?

Part III uses figures such as section 1231 gain from Form 4797, computed net long-term capital gain or loss, and then determines net capital gain and taxable amounts. It compares percentages and attaches computation schedules where required.

Sep 19, 2026

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