2011 Draft Schedule D and New Form 8949

The 2011 Schedule D of Form 1040 (Capital Gains and Losses) is being modified by the IRS. The draft version, as of 4/21/2011, however, requires transferring of total gains or losses from a new Form 8949 (Sales and Other Dispositions of Capital Assets).

Form 8949 is mainly for stock investment as the three columns asking for whether basis was sent to the owners on Form 1099-B. The current draft version of Schedule D and Form 8949 do not have "space" for standing timber sales qualifying for long-term investment gains, nor does it have lines for short-term capital gains or losses for timber. The instructions for both forms are not available as of this writing. The new form 8949 is designed to replace Schedule D-1 (Continuation Sheet of Schedule D).