8689 Allocation of Individual Income Tax to the U.S. Virgin I

Caution: DRAFT FORM
This is an advance proof copy of an IRS tax form.
It is subject to change and OMB approval before it
is officially released. You can check the scheduled
release date on our web site (www.irs.gov).
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submit them to us on our web site. Include the word
DRAFT in your response. You may make comments
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we receive. However, we will carefully consider
each suggestion. So that we can properly consider
your comments, please send them to us within 30
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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULE D (FORM 1040), PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

SCHEDULE D
(Form 1040)

©

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4
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Revised proofs
requested

OMB No. 1545-0074

Attachment
Sequence No.

Use Schedule D-1 to list additional transactions for lines 1 and 8.

12

Your social security number

(b) Date
acquired
(Mo., day, yr.)

(c) Date sold
(Mo., day, yr.)

(d) Sales price
(see page D-6 of
the instructions)

(e) Cost or other basis
(see page D-7 of
the instructions)

Enter your short-term totals, if any, from Schedule D-1,
2
line 2
Total short-term sales price amounts. Add lines 1 and 2 in
3
column (d)
Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824
Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1
Short-term capital loss carryover. Enter the amount, if any, from line 10 of your Capital Loss
Carryover Worksheet on page D-7 of the instructions

4

Net short-term capital gain or (loss). Combine lines 1 through 6 in column (f)

7

Part II

2006

See Instructions for Schedule D (Form 1040).

Short-Term Capital Gains and Losses—Assets Held One Year or Less
(a) Description of property
(Example: 100 sh. XYZ Co.)

3

©

©

Signature

O.K. to print

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Attach to Form 1040 or Form 1040NR.

Name(s) shown on Form 1040

2

Date

Capital Gains and Losses

Department of the Treasury
Internal Revenue Service
(99)

Part I

Action

(f) Gain or (loss)
Subtract (e) from (d)

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6

(

)

Long-Term Capital Gains and Losses—Assets Held More Than One Year
(a) Description of property
(Example: 100 sh. XYZ Co.)

(b) Date
acquired
(Mo., day, yr.)

(c) Date sold
(Mo., day, yr.)

(d) Sales price
(see page D-6 of
the instructions)

(e) Cost or other basis
(see page D-7 of
the instructions)

(f) Gain or (loss)
Subtract (e) from (d)

8

9
10
11
12

13
14
15

Enter your long-term totals, if any, from Schedule D-1,
line 9

9

Total long-term sales price amounts. Add lines 8 and 9 in
10
column (d)
Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or
(loss) from Forms 4684, 6781, and 8824
Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1
Capital gain distributions. See page D-1 of the instructions
Long-term capital loss carryover. Enter the amount, if any, from line 15 of your Capital Loss
Carryover Worksheet on page D-7 of the instructions
Net long-term capital gain or (loss). Combine lines 8 through 14 in column (f). Then go to
Part III on the back

For Paperwork Reduction Act Notice, see Form 1040 instructions.

Cat. No. 11338H

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Schedule D (Form 1040) 2006

7
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
SCHEDULE D (FORM 1040), PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8") 3 279mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Schedule D (Form 1040) 2006

Part III

16

Summary

Page

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Combine lines 7 and 15 and enter the result. If line 16 is a loss, skip lines 17 through 20, and
go to line 21. If a gain, enter the gain on Form 1040, line 13, or Form 1040NR, line 14. Then go
to line 17 below

16

17

Are lines 15 and 16 both gains?
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.

18

Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet on page D-8 of the
©
instructions

18

Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet on
©
page D-9 of the instructions

19

19

20

2

Are lines 18 and 19 both zero or blank?
Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete
the Qualified Dividends and Capital Gain Tax Worksheet on page 38 of the Instructions for
Form 1040 (or in the Instructions for Form 1040NR). Do not complete lines 21 and 22 below.

No. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete the
Schedule D Tax Worksheet on page D-10 of the instructions. Do not complete lines 21 and
22 below.
21

If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller
of:
● The loss on line 16 or
● ($3,000), or if married filing separately, ($1,500)

%

21

(

)

Note. When figuring which amount is smaller, treat both amounts as positive numbers.
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Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete
the Qualified Dividends and Capital Gain Tax Worksheet on page 38 of the Instructions for
Form 1040 (or in the Instructions for Form 1040NR).
No. Complete the rest of Form 1040 or Form 1040NR.
Schedule D (Form 1040) 2006

Printed on recycled paper

Caution: DRAFT FORM
This is an advance proof copy of an IRS tax form.
It is subject to change and OMB approval before it
is officially released. You can check the scheduled
release date on our web site (www.irs.gov).
If you have any comments on this draft form, you can
submit them to us on our web site. Include the word
DRAFT in your response. You may make comments
anonymously, or you may include your name and
e-mail address or phone number. We will be unable
to respond to all comments due to the high volume
we receive. However, we will carefully consider
each suggestion. So that we can properly consider
your comments, please send them to us within 30
days from the date the draft was posted.

PAGER/SGML

Userid: SD_00YHB DTD I1040AZ04 Leading adjust: 0%
Fileid: D1040SD.SGM (23-Jun-2006)

Page 1 of 3 of 2006 Instructions for Schedule D

❏

Draft
(Init. & date)

❏

Ok to Print

7:38 - 23-JUN-2006

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Department of the Treasury
Internal Revenue Service

2006 Instructions for Schedule D
Draft
Worksheets

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2006 Instructions for
Schedule D Draft
Worksheets

These draft worksheets from the Instructions for Schedule D, for tax year 2006, are
only available on the Internet. Since they
are drafts, they are subject to change. If a
worksheet is revised, it will be reposted
only if there is a change in the computation.
When the final version of the Instructions
for Schedule D becomes available, these
drafts will be removed.
The Capital Loss Carryover Worksheet
is the worksheet to calculate the capital loss
carryover for lines 6 and 14 of Schedule D.

The Schedule D Tax Worksheet is the
worksheet to calculate the tax if line 18 or
line 19 of Schedule D is more than zero.

Comments and suggestions. We welcome

your comments about these worksheets.

You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications
Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224

-1
Cat. No. 24331I

We respond to many letters by telephone. Therefore, it would be helpful if you
would include your daytime phone number,
including the area code, in your correspondence.
You can email us at *taxforms@irs.gov.
(The asterisk must be included in the address.) Please put “Instructions Comment”
on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider
your comments as we revise our tax products.

Page 2 of 3 of 2006 Instructions for Schedule D

12:50 - 21-JUN-2006

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Capital Loss Carryover Worksheet—Lines 6 and 14

Keep for Your Records

Use this worksheet to figure your capital loss carryovers from 2005 to 2006 if your 2005 Schedule D, line 21, is a loss and (a) that loss is a
smaller loss than the loss on your 2005 Schedule D, line 16, or (b) the amount on your 2005 Form 1040, line 41 (or your 2005 Form
1040NR, line 38, if applicable), reduced by any amount on your 2005 Form 8914, line 2, is less than zero. Otherwise, you do not have any
carryovers.

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1. Enter the amount from your 2005 Form 1040, line 41, or Form 1040NR, line 38. If a loss, enclose the amount in
parentheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Did you file Form 8914 (to claim an exemption amount for housing someone displaced by Hurricane Katrina)
for 2005?
䡺 No. Enter -0-.
䡺 Yes. Enter the amount from your 2005 Form 8914, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3.
4.
5.
6.
7.
8.
9.
10.

11.
12.
13.
14.
15.

Subtract line 2 from line 1. If the result is less than zero, enclose it in parentheses . . . . . . . . . . . . . . . . . . . .
Enter the loss from your 2005 Schedule D, line 21, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combine lines 3 and 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the smaller of line 4 or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If line 7 of your 2005 Schedule D is a loss, go to line 7; otherwise, enter -0- on line 7 and go to line 11.
Enter the loss from your 2005 Schedule D, line 7, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter any gain from your 2005 Schedule D, line 15. If a loss, enter -0- . . . . . . . . . . . . . 8.
Add lines 6 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term capital loss carryover for 2006. Subtract line 9 from line 7. If zero or less, enter -0-. If more than
zero, also enter this amount on Schedule D, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If line 15 of your 2005 Schedule D is a loss, go to line 11; otherwise, skip lines 11 through 15.
Enter the loss from your 2005 Schedule D, line 15, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter any gain from your 2005 Schedule D, line 7. If a loss, enter -0- . . . . . . . . . . . . . . 12.
Subtract line 7 from line 6. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term capital loss carryover for 2006. Subtract line 14 from line 11. If zero or less, enter -0-. If more
than zero, also enter this amount on Schedule D, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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6.

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Page 3 of 3 of 2006 Instructions for Schedule D

12:50 - 21-JUN-2006

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

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 38 of the Instructions for Form 1040 (or in the Instructions for Form 1040NR) 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 1040NR, line 10b); or
• Form 1040, line 43 (or Form 1040NR, line 40) is zero or less.

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Instead, see the instructions for Form 1040, line 44 (or Form 1040NR, line 41).

1. Enter your taxable income from Form 1040, line 43 (or Form 1040NR, line 40) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter your qualified dividends from Form 1040, line 9b (or
Form 1040NR, line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . 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.
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.
10. Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Add lines 18 and 19 of Schedule D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Subtract line 12 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Subtract line 13 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Enter the smaller of:
• The amount on line 1 or
• $30,650 if single or married filing separately;
. . . . . . . . 15.
$61,300 if married filing jointly or qualifying widow(er); or
$41,050 if head of household
16. Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . 17.
18. Enter the larger of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 18.
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 19.
20. Multiply line 19 by 5% (.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
22. Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . 22.
23. Subtract line 22 from line 21. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 23.
24. Multiply line 23 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 29.
30. Multiply line 29 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
32. Subtract line 31 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.
33. Multiply line 32 by 28% (.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34. Figure the tax on the amount on line 18. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . .
35. Add lines 20, 24, 30, 33, and 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . .
37. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 35 or line 36. Also
include this amount on Form 1040, line 44 (or Form 1040NR, line 41) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*If applicable, enter instead the smaller amount you entered on the dotted line next to line 4e of Form 4952.

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