How to report capital gain distributions depends on whether you have any other capital gains or losses. If you do, report total capital gain distributions (box 2a of Form 1099-DIV) on Schedule D (Form 1040), Part II, line 13. If you do not have any other capital gains or losses, you may be able to report your capital gain distributions directly on Form 1040, line 13, or Form 1040A, line 10. In either case, see Reporting Capital Gains and Losses in chapter 4 for more information.

The mutual fund (or other regulated investment company) or real estate investment trust (REIT) making the distribution should tell you how much of it is:

Unrecaptured section 1250 gain (box 2b), or

Section 1202 gain (box 2c).

For information about these terms, see Capital Gain Tax Rates in chapter 4.

Enter on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the Schedule D instructions the part reported to you as unrecaptured section 1250 gain. If you have a gain on qualified small business stock (section 1202 gain), follow the reporting instructions under Section 1202 Exclusion in chapter 4.