How should John report the capital gains distributions

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Question - John owns shares in a mutual fund and shares of individual stocks in his brokerage account. The Form 1099-DIV from the mutual fund indicates $2,000 of capital gains distributions and the form from the brokerage firm indicates $6,000 of capital gains distributions. The brokerage statement also indicated a long term capital loss of $1,850 on a stock sale. How should John report the capital gains distributions?

a. He is not required to report them until he sells the underlying securities.

b. He should report them directly on Form 1040.

c. He should report them on Schedule D.

d. He should report them on Form 8949 and then on Schedule D.

Reference no: EM132523744

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