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

To document profits or losses from real estate, stocks, bonds, rental real estate, s partnerships, estates and other sources in Alabama, you must file Schedules D&E along with your state form 40 tax return. Both documents are found on the website of the Alabama Department of Revenue.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 1: The first page contains Schedule D. At the top, enter your name as entered on form 40 and your Social Security number.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 2: A chart is provided to document and total your net profit or loss from sales of real estate, stocks, bonds and related income sources. In column a, enter a description of the kind of property.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 3: In column b, enter the date of acquisition. In column c, enter the date of sale.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 4: In column d, enter the amount received. In column e, enter the depreciation allowable since acquisition.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 5: In column f, enter the cost or other basis. In column g, enter the cost of subsequent improvements. 

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 6: 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 And Loss Schedules D&E Step 7: Enter your total from column H on line 1 here and transfer it to line 3 of Part I of form 40.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 8: Enter your name and Social Security number at the top of Schedule E.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 9: Document your income or loss from rental real estate and royalties in Part I as instructed.

Alabama Net Profit Or Loss/Supplemental Income And Loss Schedules D&E Step 10: Document income from partnerships, S corporations, estates and trusts in Part II.