Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

Schedule D Lines 4 and 5: Short-Term Gain From Other Forms

Updated October 18, 2026. Quick answer: Line 4 collects short-term gain or loss that was figured on other forms: Form 6252, Form 4684, Form 6781 and Form 8824. Line 5 collects the net short-term gain or loss shown on your Schedules K-1 from partnerships, S corporations, estates and trusts. Both are copied from those forms, not worked out on Schedule D.

What lines 4 and 5 ask for

Line 4 is captioned “Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824”. Line 5 is captioned “Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1”. Both are in Part I of Schedule D (Form 1040). The instructions’ list of what Schedule D is for names the same sources: “To report a gain from Form 2439 or 6252 or Part I of Form 4797;” “To report a gain or loss from Form 4684, 6781, or 8824;” and “To report a gain or loss from a partnership, S corporation, estate, or trust;”. Form 2439 and Form 4797 appear in that list but not in the line 4 caption; the form’s own captions are the guide to which line takes which source.

Where the number comes from: line 4

The instructions describe each source form in one sentence. “Use Form 4684 to report involuntary conversions of property due to casualty or theft.” “Use Form 6781 to report gains and losses from section 1256 contracts and straddles.” “Use Form 8824 to report like-kind exchanges.” You complete the source form first and carry its short-term result to line 4. The source forms have their own pages: Form 4684, Form 6252 and Form 8824.

The instructions have no separate paragraph for lines 4 and 5, so the form captions above are the rule. Only the short-term part of those forms goes on line 4; the long-term part is covered at Schedule D lines 11 and 12.

Where the number comes from: line 5

Line 5 comes from the Schedule K-1 each pass-through entity sends you. The caption asks for the “Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts”. On a partnership K-1 the short-term capital gain is a numbered box, explained on the Schedule K-1 (Form 1065) box 8 page.

Where it goes next

Lines 4 and 5 join lines 1a through 3 in the Part I total. Line 7 is captioned “Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h).” The carryover on line 6 and the combining step are at Schedule D lines 6 and 7.

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. They are byte-identical to the archived copies and 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.” Schedule D has its own instructions booklet, titled “Instructions for Schedule D (Form 1040)”. 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

  • Entering long-term amounts on line 4. The caption asks for “Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824”
  • Skipping the source form. The instructions say Schedule D is used “To report a gain or loss from Form 4684, 6781, or 8824;” so the figure starts on that form.
  • Mixing up the short-term and long-term K-1 lines. Line 5 is for “Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts” only, not long-term amounts.

Related: Schedule D (Form 1040), Form 4684, Form 6252, Form 8824, and Schedule K-1 (Form 1065) box 8.

Sources

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.

Next step