dkh,

Thanks for the quick response.  The results I get from entering it in this way did bring it into the Sch D, but I'm astonished at the difference.  The profit amount was $40,544 and the taxes owed went down from $8,187 to $783.  I was expecting a possible reduction in the tax liability, but nothing anywhere close to this.  Given the details I've provided, does such a drastic reduction sound right?