U.S. · Form 8960 line 5a
Form 8960 line 5a net gain or loss from disposition of property.
Which lines on your return feed line 5a, and what to do with gains that are reported elsewhere.
Line 5a is the net gain or loss from disposing of property, taken from your properly completed return: for Form 1040 or 1040-SR, line 7a combined with Schedule 1 (Form 1040) line 4. Estates and trusts use Form 1041 lines 4 and 7. A gain or loss that is not reported that way goes on line 7 instead, and line 5d combines 5a through 5c.
Look up the source lines
Result
Source lines for line 5a
| Return | Where line 5a comes from | Notes from the instructions |
|---|---|---|
| Form 1040 or 1040-SR | Line 7a, combined with Schedule 1 (Form 1040), line 4 | Line 7a is capital gain or loss; Schedule 1 line 4 is other gains or losses. |
| Form 1041 | Lines 4 and 7 | Estates and trusts. |
| Form 1041-QFT | Line 3, plus the portion of line 4 attributed to ordinary gain or loss | Qualified funeral trusts have special computational rules. |
| Form 1040-NR | The amounts you would enter on Form 1040 line 7a and Schedule 1 line 4, from the attachment | Include net gain or loss only for your period of U.S. residency. |
| Not reported on those lines | Report it on line 7 instead | Examples in the instructions include gain or loss on an annuity or life insurance contract and casualty and theft losses on Schedule A line 15 (a negative amount). |
How line 5a fits with 5b to 5d
Line 5b removes net gain or loss from a disposition that is not subject to the net investment income tax, such as property held in a non-section 1411 trade or business. Line 5c adjusts for a disposition of a partnership interest or S corporation stock. Line 5d then combines lines 5a through 5c, and that result is added into line 8 along with lines 1, 2, 3, 4c, 6 and 7. The instructions also provide a Lines 5a-5d Net Gains and Losses Worksheet to help with the calculation, including capital loss carryforwards.
Worked example
A single filer with a $20,000 net gain on Form 1040 line 7a and a $3,000 net ordinary loss on Schedule 1 line 4 enters $17,000 on line 5a. If the same filer also had a $5,000 casualty loss deducted on Schedule A line 15, that loss is not part of line 5a; the instructions put it on line 7 as a negative amount. Amounts are illustrative.
What this page does not do
It does not compute the gain, apply the 3.8% rate or determine whether a property is held in a section 1411 trade or business. For that, use the NIIT calculator and the worksheet in the instructions.
Sources
- Instructions for Form 8960 (2025): Line 5a source lines by return, the line 7 note and the Lines 5a-5d worksheet reference. Read November 2, 2026.
- Form 8960 (2025): The exact wording of lines 5a through 5d and line 8. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is Form 8960 line 5a?
The net gain or loss from the disposition of property, figured by combining amounts from your properly completed return.
Which lines feed line 5a on Form 1040?
Form 1040 or 1040-SR line 7a combined with Schedule 1 (Form 1040) line 4.
Where do estates and trusts get line 5a?
From Form 1041 lines 4 and 7. Qualified funeral trusts use Form 1041-QFT line 3 and the ordinary gain or loss portion of line 4.
Where does a gain that is not on those lines go?
On line 7. The instructions give annuity and life insurance dispositions and Schedule A casualty and theft losses as examples.
What is the difference between line 5a and line 5d?
Line 5d combines lines 5a, 5b and 5c, so it includes the adjustments for non-section 1411 property and for partnership or S corporation interests.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.