Technically you dont report expenses on schedule D. They are on schedule C. You just need them to come off the captial gains income you are showing which is on schedule D.
It will look like this
Schedule C :
Individually list expenses.
Total
10k.
You need to zero out the expenses. So either do that with a footnote explains such. OR if you are using turbo tax make a new expense line item in the form of a negative 10k.
New Grand total on Schedule C is now 0.
Schedule D:
Capital gains and losses: 50k
-10k (expenses carryover from schedule C)
capital gains and losses on schedule D : 40k
The easiest way to do this is on turbo tax is to make a new "fake" trade on -10k. Thus it comes off the 50k total.
