How do you mean zero it out? Your capital gain distribution is included on your return. Capital Gains Distributions reported on Form 1099-DIV, Box 2A should be reported on Schedule D, Line 13. On Schedule D, your Capital Gains Distributions are combined with any Short-Term or Long-Term Capital Gains or losses and this figure flows to Line 7 of your Form 1040.
Long-term capital gains tax is a tax on profits from the sale of an asset held for more than a year. The long-term capital gains tax rate is 0%, 15% or 20% depending on your taxable income and filing status.
LTCG Rates
