TAP 05-014

Form 1065 Schedule D Change

Statement of Issue:

Form 1065, Schedule D (Capital Gains and Losses for Partnerships), Part 1 provides only four (4) lines to record capital gains and losses - Assets held 1 year or less. Taxpayers with more than four transactions must attach a supplemental sheet. Only four lines also are available for Part 2 Long-Term Capital Gains and Losses –Assets held more than 1 year. Any more than four (4) transactions require a supplemental sheet.

Proposal:

TAP recommended that two additional lines be added to record both short term and long term transactions so that partnerships with more than four (4) transactions in either category will not be required to attach an additional supplemental sheet to complete the return.

Response Notes: