Reporting Capital Gains on Form 990

Organizations filing Form 990 must report their capital gains and losses on Schedule D. Learn how to accurately report your capital gains and losses with this expert guide.

Reporting Capital Gains on Form 990

Organizations that file Form 990 are required to provide detailed reports on funds advised by donors, conservation easements, certain art collections and museums, escrow or escrow accounts and agreements, endowment funds, and supplementary financial information. This is done through Annex D, which is included only on Form 990 and not on Form 990-EZ or Form 990-PF. The checklist in the mandatory annexes section of Form 990 contains several questions that may require the filing of Schedule D. This schedule is used to report capital gains and losses from the sale or exchange of capital assets.

It is important to note that capital gains are reported differently than ordinary income. Capital gains are reported on line 1 of Schedule D. This includes any gains from the sale of stocks, bonds, mutual funds, real estate, and other investments. The amount reported should be the net gain or loss from the sale of the asset.

This means that any expenses related to the sale should be subtracted from the total proceeds. In addition to reporting capital gains on Schedule D, organizations must also report any capital losses. These losses can be used to offset any capital gains reported on the same form. If there are more losses than gains, the excess can be carried forward to future tax years. It is important for organizations to accurately report their capital gains and losses on Form 990.

Failure to do so could result in penalties or other consequences from the IRS. Organizations should consult with a tax professional if they have any questions about how to properly report their capital gains and losses.

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