INSTRUCTIONS: ALABAMA NET PROFIT OR LOSS/SUPPLEMENTAL INCOME OR LOSS (Schedules D & E)

When filing Alabama individual income tax form 40, Schedule D is filed supplementally to document net profit or loss from the sale of real estate, stocks, bonds and related sources. Schedule E is filed supplementally to document supplemental income and loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs and similar sources. Both Schedules are available as one document from the website maintained by the Alabama Department of Revenue.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 1: Enter your name and Social Security number at the top of both schedules.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 2: The table provided on Schedule D is for documentation of all applicable net profit or loss. Enter the kind of property in column a.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 3: Enter the date the property was acquired in column b.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 4: Enter the date the property was sold in column c.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 5: Enter the amount received from the sale in column d.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 6: Enter the depreciation allowable since the acquisition in column e.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 7: Enter the cost or other basis of the purchase in column f.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 8: Enter the cost of subsequent improvements in column g.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 9: Subtract the sum of columns f and g from the sum of columns d and e. Enter the resulting difference in column h.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 10: Enter the total of all values in column h at the bottom of the page.

Alabama Net Profit Or Loss/Supplemental Income Or Loss Schedules D & E Step 11: Complete Schedule E as instructed.