Where is net unrealized appreciation considered on form 1040?

Net unrealized appreciation (NUA) is not directly reported on Form 1040. However, it is relevant when reporting the distribution of employer stock from a qualified retirement plan, such as a 401(k). When you take a distribution that includes employer stock, the NUA is calculated and reported on Form 8949, which is then summarized on Schedule D, and ultimately affects the capital gains reported on your Form 1040.