For people who owned stocks, mutual funds or other investments last year, capital gains tax rules will affect how they file their tax returns and how much tax they'll owe from those investments.

For 1999, if your only capital gains are capital gain distributions from mutual funds, you may not need to file Schedule D. Instead, the gains generally can be reported directly on Form 1040, line 13. The Form 1040 instructions include a helpful worksheet to figure the tax.

You do not have to file Schedule D if all the following are true:

• The only amounts you would have to report on Schedule D are capital gain distributions from box 2a of Form 1099-DIV (or substitute statement).
• You do not have an amount in box 2b, 2c, or 2d of any Form 1099-DIV (or substitute statement).
• If you file Form 4952, Investment Interest Expense Deduction, the amount on line 4e of that form is not more than zero.

If all the above statements are true, report your capital gain distributions directly on line 13 of Form 1040 and check the box on that line. Remember to take advantage of the Capital Gain Tax Worksheet in the Form 1040 instructions to help figure your tax.

For more information about the capital gains tax changes, see a financial advisor or get free copies of IRS Publication 550, Investment Income and Expenses (Including Capital Gains and Losses); Publication 564, Mutual Fund Distributions; and Schedule D and its instructions.

Call 1-800-829-3676 to order these publications or download at our site.

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