Updated October 18, 2026. Quick answer: Line 18 takes one number from the 28% Rate Gain Worksheet in the Schedule D instructions. You only complete the worksheet if you answered Yes on line 17 and you reported a collectibles gain or loss, or a section 1202 exclusion on qualified small business stock, in Part II of Form 8949. If neither applies, line 18 stays blank or zero.
Read box by box from the IRS form text: Form 2439 boxes 1a to 1d.
S corporation return (Form 1120-S) for 2025, read line by line: Form 1120-S Schedule K lines 5 to 10.
Partnership return (Form 1065) for 2025, read line by line: Form 1065 Schedule K lines 5 to 11.
What line 18 asks for
The caption on the form reads: “If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet”. You only get here after a Yes on line 17, because the form says “Yes. Go to line 18.” The lines 16 and 17 page explains that test.
When the worksheet is required
The instructions give two triggers. You “complete the 28% Rate Gain Worksheet in these instructions if either of the following applies for 2025.”
First, you “reported in Part II of Form 8949 a section 1202 exclusion from the eligible gain on QSB stock”. Second, you “reported in Part II of Form 8949 a collectibles gain or (loss).” See the Form 8949 page for Part II.
What counts as a collectible
“A collectibles gain or (loss) is any” long-term “gain or deductible” long-term “loss from the sale or exchange of a collectible that is a capital asset.” “Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property.”
Entity interests can also count: “Include on the worksheet any gain (but not loss) from the sale or exchange of an interest in a partnership, S corporation, or trust held for more than 1 year and attributable to unrealized appreciation of collectibles.”
Other amounts that go on the worksheet
Fund and trust forms can carry collectibles gain too. The instructions say “If there is an amount in box 2d, include that amount on line 4 of the 28% Rate Gain Worksheet in these instructions if you complete line 18 of Schedule D.” That box is on Form 1099-DIV, and the box 2a page explains the neighbouring box that feeds line 13.
Where the number comes from
Line 18 is not figured on Schedule D itself. It comes from the 28% Rate Gain Worksheet, which is on a page of the Schedule D instructions headed with its name and marked for you to keep with your records. Its entries are drawn from Form 8949 Part II, Forms 4684, 6252, 6781 and 8824, Form 1099-DIV, Form 2439, Schedule K-1 and the carryover and net short-term lines of Schedule D. Work the worksheet from the printed form and carry its result to line 18 as the caption directs. This page does not rebuild the worksheet’s line math.
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Where it goes next
Line 19 asks the parallel question for real property, covered on the line 19 page. Then line 20 asks “Are lines 18 and 19 both zero or blank and you are not filing Form 4952?” A No answer sends you to the Schedule D Tax Worksheet, explained on the line 20 page. The overall form is on the Schedule D (Form 1040) page.
Edition and line numbers
This page reads the 2025 Schedule D (Form 1040) and its 2025 instructions, the current files irs.gov served on 2026-10-18 (byte-identical to the archived copies). They are the files for the tax year 2025 return, filed in 2026. The schedule says “Attach to Form 1040, 1040-SR, or 1040-NR.” Check the tax year printed on the schedule you are filling in and use the line numbers on that year’s schedule, because a different year’s schedule can number or word its lines differently.
Common mistakes
- Completing the worksheet without a trigger. The instructions limit it to cases where “either of the following applies for 2025.” (a section 1202 exclusion on QSB stock, or a collectibles gain or loss).
- Including a collectibles loss from an entity interest. The instructions say “any gain (but not loss) from the sale or exchange of an interest in a partnership, S corporation, or trust”
- Overlooking a Form 1099-DIV amount. The instructions say “If there is an amount in box 2d, include that amount on line 4 of the 28% Rate Gain Worksheet”
Related: Schedule D (Form 1040), Form 8949, Form 1099-DIV box 2a, and Form 1040.
Sources
- Instructions for Schedule D (Form 1040), Capital Gains and Losses (2025): https://www.irs.gov/pub/irs-pdf/i1040sd.pdf
- Schedule D (Form 1040), Capital Gains and Losses (2025): https://www.irs.gov/pub/irs-pdf/f1040sd.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.