Formulario 1041 Cuadro D
Instrucciones para la Lista D (formulario 1041), Ganancias de Capital y Pérdidas
Rev. 2023
Formularios relacionados
- Formulario 1041 Cuadro D - Ganancias de capital y pérdidas
Department of the Treasury
Internal Revenue Service
2023
Instructions for Schedule D
(Form 1041)
Capital Gains and Losses
Section references are to the Internal Revenue Code unless
Purpose of Schedule
otherwise noted.
These instructions explain how to complete Schedule D
(Form 1041). Complete Form 8949 before you complete
line 1b, 2, 3, 8b, 9, or 10 of Schedule D.
Future Developments
For the latest information about developments related to
Schedule D and its instructions, such as legislation enacted
Use Schedule D to report the following.
The overall capital gains and losses from transactions
reported on Form 8949.
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What's New
Certain transactions that the estate or trust doesn't have
to report on Form 8949.
Capital gains and qualified dividends. For tax year 2023,
the 20% maximum capital gain rate applies to estates and
trusts with income above $14,650. The 0% and 15% rates
continue to apply to certain threshold amounts. The 0% rate
applies up to $3,000. The 15% rate applies to amounts over
$3,000 and up to $14,650.
Gain from Part I of Form 4797, Sales of Business
Property.
Capital gain or loss from Form 4684, Casualties and
Thefts.
Capital gain from Form 6252, Installment Sale Income.
Capital gain or loss from Form 6781, Gains and Losses
From Section 1256 Contracts and Straddles.
Capital gain or loss from Form 8824, Like-Kind
Exchanges.
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Deferral of gain invested in a qualified opportunity fund
(QOF). If you made a deferral election in a QOF that meets
the 5-year holding period threshold, you will be eligible for a
10% stepped-up basis. See Form 8997 and its instructions
for additional information regarding QOFs.
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Undistributed long-term capital gains from Form 2439,
Notice to Shareholders of Undistributed Long-Term
Capital Gains.
Reminders
Capital gain or loss from partnerships, S corporations, or
other estates or trusts.
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Disposal of qualified opportunity fund (QOF) invest-
ment. If you disposed of any investment in a QOF during the
tax year, you will need to check the box on Schedule D and
attach Form 8949, Sales and Other Dispositions of Capital
Assets. You will also need to report the disposal on Form
8997, Initial and Annual Statement of Qualified Opportunity
Fund (QOF) Investments. See the Instructions for Form 8949
and the Instructions for Form 8997 for additional reporting
requirements.
A capital loss carryover from 2022 to 2023.
For more information, see Pub. 544, Sales and Other
Dispositions of Assets; Pub. 551, Basis of Assets; and the
Instructions for Form 8949.
Other Forms You May Have To File
Form 8949. Use Form 8949 to report the sale or exchange
of a capital asset (defined later) not reported on another form
about when Form 8949 is and isn't needed.
Form 4797. Use Form 4797 to report the following.
1. The sale or exchange of:
Form 8971. Form 8971, Information Regarding Beneficiaries
Acquiring Property From a Decedent, along with its
Schedule A, is used to comply with the filing requirements
regarding consistent basis reporting between an estate and a
person acquiring property from an estate.
For more information, see Consistent basis reporting
decedent, later.
Form 1041 e-filing. When e-filing Form 1041, U.S. Income
Tax Return for Estates and Trusts, use either Form 8453-FE,
U.S. Estate or Trust Declaration for an IRS e-file Return, or
Form 8879-F, IRS e-file Signature Authorization for Form
1041. If Form 1041 is e-filed, then any Schedule D (Form
1041) and Form 8949 that are part of the return must also be
e-filed.
a. Real property used in a trade or business;
b. Depreciable and amortizable tangible property used
in a trade or business (but see Disposition of
Depreciable Property Not Used in Trade or Business
in the Instructions for Form 4797);
c. Oil, gas, geothermal, or other mineral property; and
d. Section 126 property.
2. The involuntary conversion (other than from casualty or
theft) of property used in a trade or business and capital
assets held more than 1 year for business or profit. But
see Disposition of Depreciable Property Not Used in
Trade or Business in the Instructions for Form 4797.
General Instructions
Any reference in these instructions to “you” means the
fiduciary of the estate or trust.
3. The disposition of noncapital assets other than inventory
or property held primarily for sale to customers in the
ordinary course of a trade or business.
Nov 29, 2023
Cat. No. 11378R
4. Ordinary loss on the sale, exchange, or worthlessness of
small business investment company (section 1242)
stock.
tax liability, the beneficiary must use a basis consistent with
the final estate tax value of the property to determine the
beneficiary’s basis in that property. Calculate a basis
consistent with the final estate tax value by starting with the
reported value and then making any allowed adjustments.
For more information, see sections 1014(f), 6035, the
5. Ordinary loss on the sale, exchange, or worthlessness of
small business (section 1244) stock.
6. Election to defer a qualified section 1231 gain invested in
a Qualified Opportunity Fund (QOF).
Basis of property acquired from a decedent who died in
From a Decedent Dying in 2010 for details about determining
the basis of property acquired from a decedent who died in
2010.
Basis of assets held on January 1, 2001, where an elec-
tion to recognize gain was made. If you elected on behalf
of an estate or trust to recognize gain on an asset held on
January 1, 2001, the basis in the asset is its closing market
price or FMV, whichever applies, on the date of the deemed
sale and reacquisition, whether the deemed sale resulted in a
gain or an unallowed loss.
Form 4684. Use Form 4684 to report involuntary
conversions of property due to casualty or theft.
Form 6781. Use Form 6781 to report gains and losses from
section 1256 contracts and straddles.
Form 8824. Use Form 8824 if the estate or trust made one
or more like-kind exchanges. A like-kind exchange occurs
when the estate or trust exchanges business or investment
real property for real property of a like kind.
Form 8971. Use Form 8971 (including Schedule(s) A) to
report basis between an estate and a person acquiring
property from a decedent.
Carryover basis. Carryover basis determined under
repealed section 1023 applies to property acquired from a
decedent who died after December 31, 1976, and before
November 7, 1978, only if the executor made a timely filed
election on Form 5970-A, Election of Carryover Basis.
Property received from an Alaska Native Corporation.
The basis of property received by an Alaska Native
Settlement Trust from an Alaska Native Corporation is the
lesser of the basis of the Native Corporation in the property or
the FMV immediately before the contribution of the property
to the trust. The basis and FMV of the property are shown on
the statement provided by the Native Corporation to the
Settlement Trust.
Special Rules for Determining Basis of Estate
and Trust Property
Basis of trust property. Generally, the basis of property
acquired by gift is the same as its basis in the hands of the
donor. However, if the fair market value (FMV) of the property
at the time it was transferred to the trust is less than the
transferor's basis, then the FMV is used to determine any
loss upon disposition.
If the property was transferred to the trust after 1976, and
a gift tax was paid under Chapter 12, then increase the
donor's basis as follows:
Multiply the amount of the gift tax paid by a fraction, the
numerator of which is the net appreciation in value of the gift
(defined below), and the denominator of which is the amount
of the gift. For this purpose, the net appreciation in value of
the gift is the amount by which the FMV of the gift exceeds
the donor's adjusted basis.
Basis of decedent's estate property. Generally, the basis
of property acquired by a decedent's estate is the FMV of the
property at the date of the decedent's death, or the alternate
valuation date if the executor elected to use an alternate
valuation under section 2032.
See Pub. 551 and the Instructions for Form 706, United
States Estate (and Generation-Skipping Transfer) Tax Return,
for a discussion of the valuation of qualified real property
under section 2032A.
Consistent basis reporting between estate and person
acquiring property from a decedent. An executor of an
estate (or other person) required to file an estate tax return
after July 31, 2015, must provide a Form 8971 with attached
Schedules A to the IRS, and a copy of the beneficiary’s
Schedule A to each beneficiary who receives or is to receive
property from the estate. The Schedule A must show the final
estate tax value of the property received or to be received by
the beneficiary. An executor (or other person) who files an
estate tax return only to make an election regarding the
generation-skipping transfer tax or portability of the deceased
spousal unused exclusion (DSUE) is not required to provide
Form 8971 and Schedule A.
Capital Asset
Each item of property held by the estate or trust (whether or
not connected with a trade or business) is a capital asset,
except the following.
Stock in trade, inventory, or property held primarily for
sale to customers.
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Depreciable or real property used in a trade or business,
even if it's fully depreciated.
Certain patents, inventions, models, or designs (whether
or not patented); secret formulas or processes; or similar
property. See section 1221(a)(3).
Copyrights; literary, musical, or artistic compositions;
letters or memoranda; or similar property eligible for
copyright protection that the trust received from someone
whose personal efforts created them or for whom they
were created in a way (such as by gift) that entitled the
trust to the basis of the previous owner. In the case of
letters, memoranda, or similar property, such property
may also be prepared or produced for the trust.
Note. Under section 1221(b)(3), the trust can elect to
treat musical compositions and copyrights in musical
works as capital assets if it acquired the assets under
circumstances entitling it to the basis of the person who
created the property or for whom it was prepared or
produced.
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Accounts or notes receivable acquired in the ordinary
course of a trade or business for services rendered or
from the sale of inventoriable assets or property held
primarily for sale to customers.
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If Part 2, column C of the Schedule A, received by the
beneficiary indicates that the property increases the estate
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2023 Instructions for Schedule D (Form 1041)
Certain U.S. Government publications not purchased at
the public sale price.
pecuniary bequest (that is, a bequest of a sum of
money).
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Certain “commodities derivative financial instruments”
held by a dealer (see section 1221(a)(6)).
Items for Special Treatment
Certain hedging transactions entered into in the normal
course of a trade or business (see section 1221(a)(7)).
Supplies regularly used in a trade or business.
Bonds and other debt instruments. See Pub. 550,
Investment Income and Expenses (Including Capital
Gains and Losses).
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Gain on the disposition of a market discount bond. In
general, the gain is recharacterized as interest income to
the extent of accrued market discount as of the date of
disposition. See sections 1276 through 1278 and Pub.
550 for more information on market discount. See the
Instructions for Form 8949 for detailed information about
how to report the disposition of a market discount bond.
Gain or loss recognized on the disposition of a
contingent payment debt instrument subject to the
noncontingent bond method. The gain is generally
treated as interest income rather than as capital gain. In
certain situations, all or a portion of a loss recognized on
the disposition of a contingent payment debt instrument
subject to the noncontingent bond method may be
treated as an ordinary loss rather than as a capital loss.
See Regulations section 1.1275-4(b) and Pub. 550 for
more information on contingent payment debt
instruments subject to the noncontingent bond method.
A nonbusiness bad debt must be treated as a short-term
capital loss and can be deducted only in the year the
debt becomes totally worthless. See Pub. 550 for details.
Wash sales of stock or securities (including contracts or
options to acquire or sell stock or securities) (section
1091).
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Short-Term or Long-Term
Separate the capital gains and losses according to how long
the estate or trust held or owned the property. The holding
period for short-term capital gains and losses is generally 1
year or less. The holding period for long-term capital gains
and losses is generally more than 1 year. Property acquired
from a decedent is treated as held for more than 1 year.
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To figure the length of the period the estate or trust held
property, begin counting on the day after the estate or trust
acquired the property and include the day it was disposed.
Use the trade dates for the dates of acquisition and sale of
stocks and bonds traded on an exchange or over-the-counter
market.
The holding period for property received by an Alaska
Native Settlement Trust from an Alaska Native Corporation
includes the period the Native Corporation held the property.
The date the Native Corporation acquired the property is
shown on the statement provided by the Native Corporation
to the Settlement Trust.
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Beginning in 2018, the long-term holding period for certain
gains with respect to “applicable partnership interests” is
more than 3 years. See Pub. 541, Partnerships, for more
information.
Gain or loss on options to buy or sell. See Pub. 550.
Certain real estate subdivided for sale that may be
considered a capital asset (section 1237).
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For more information about holding periods, see the
Instructions for Form 8949.
Gain on disposition of stock in a domestic international
sales corporations (DISC) or former DISC (section
995(c); see also section 996(g)).
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Section 643(e)(3) Election
Gain on the sale or exchange of stock in certain foreign
corporations (section 1248).
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For in-kind noncash property distributions, a fiduciary may
elect to have the estate or trust recognize gain or loss in the
same manner as if the distributed property had been sold to
the beneficiary at its FMV. The distribution deduction is the
property's FMV. This election applies to all distributions made
by the estate or trust during the tax year. Once the election is
made, it may only be revoked with IRS consent.
Sales of stock received under a qualified public utility
dividend reinvestment plan. See Pub. 550 for details.
Transfer of appreciated property to a political
organization (section 84).
Amounts received by shareholders in corporate
liquidations. See Pub. 550.
Cash received in lieu of fractional shares of stock as a
result of a stock split or stock dividend. See Pub. 550.
Load charges to acquire stock in a regulated investment
company (including a mutual fund), which may not be
taken into account in determining gain or loss on certain
dispositions of the stock if reinvestment rights were
exercised. See Pub. 550.
Note. Section 267 doesn't allow a trust or a decedent's
estate to claim a deduction for any loss on property to which
a section 643(e)(3) election applies. In addition, when a trust
or a decedent's estate distributes depreciable property,
section 1239 applies to deny capital gains treatment for any
gain on property to which a section 643(e)(3) election
applies.
The sale or exchange of S corporation stock or an
interest in a trust held for more than 1 year, which may
result in collectibles gain (28% rate gain). See the
instructions for line 18c, later.
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Related Persons
A trust can't deduct a loss from the sale or exchange of
property directly or indirectly between any of the following.
The sale or other disposition of a partnership interest
may result in ordinary income, collectibles gain, or
unrecaptured section 1250 gain.
A grantor and a fiduciary of a trust;
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A fiduciary of a trust and a fiduciary (or beneficiary) of
another trust created by the same grantor;
A fiduciary and a beneficiary of the same trust;
A trust fiduciary and a corporation of which more than
50% in value of the outstanding stock is owned directly or
indirectly by or for the trust or by or for the grantor of the
trust; or
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Gain or loss on the disposition of securities futures
contracts. See Pub. 550.
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Gains from certain constructive ownership transactions.
Gain in excess of the gain the estate or trust would have
recognized if the estate or trust held a financial asset
directly during the term of a derivative contract must be
treated as ordinary income. See section 1260 for details.
An executor of an estate and a beneficiary of that estate,
except when the sale or exchange is to satisfy a
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2023 Instructions for Schedule D (Form 1041)
If qualified dividends include extraordinary dividends, any
loss on the sale or exchange of the stock is a long-term
capital loss to the extent of the extraordinary dividends.
An extraordinary dividend is a dividend that is at least
10% (5% in the case of preferred stock) of the basis in
the stock.
QSB stock acquired after February 17, 2009, and before
September 28, 2010. The exclusion is increased to 100% on
the sale of QSB stock acquired after September 27, 2010.
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To be QSB stock, the stock must meet all of the following
tests.
Gain or loss from a sale, exchange, or other disposition
of virtual currency if held as a capital asset. See Notice
2014-21, 2014-16 I.R.B. 938, as modified by Notice
2023-34, 2023-19 I.R.B. 837.
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1. It must be stock in a C corporation (that is, not S
corporation stock).
2. It must have been originally issued after August 10,
1993.
NAV method for money market funds. Report capital gain
or loss determined under the net asset value (NAV)
method with respect to shares in a money market fund on
Form 8949, Part I, with box C checked. Enter the name of
each fund followed by “(NAV)” in column (a). Enter the
net gain or loss in column (h). Leave all other columns
blank. See the Instructions for Form 8949.
3. As of the date the stock was issued, the corporation was
a QSB. A QSB is a domestic C corporation with total
gross assets of $50 million or less (a) at all times after
August 9, 1993, and before the stock was issued, and (b)
immediately after the stock was issued. Gross assets
include those of any predecessor of the corporation. All
corporations that are members of the same
Constructive Sales Treatment for Certain
Appreciated Positions
Generally, the estate or trust must recognize gain (but not
loss) on the date it enters into a constructive sale of any
appreciated position in stock, a partnership interest, or
certain debt instruments as if the position were disposed of at
FMV on that date.
parent-subsidiary controlled group are treated as one
corporation.
4. The estate or trust acquired the stock at its original issue
(either directly or through an underwriter), either in
exchange for money or other property or as pay for
services (other than as an underwriter) to the
corporation. In certain cases, the estate or trust may
meet the test if it acquired the stock from another person
who met this test (such as by gift or inheritance) or
through a conversion or exchange of QSB stock the
estate or trust held.
The estate or trust is treated as making a constructive sale
of an appreciated position when it (or a related person, in
some cases) does one of the following.
Enters into a short sale of the same or substantially
identical property (that is, a “short sale against the box”);
Enters into an offsetting notional principal contract
relating to the same or substantially identical property;
Enters into a futures or forward contract to deliver the
same or substantially identical property; or
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5. During substantially all the time the estate or trust held
the stock:
a. The corporation was a C corporation;
b. At least 80% of the value of the corporation's assets
was used in the active conduct of one or more
qualified businesses (defined below); and
Acquires the same or substantially identical property (if
the appreciated position is a short sale, offsetting
notional principal contract, or a futures or forward
contract).
c. The corporation wasn't a foreign corporation, DISC,
former DISC, corporation that has made (or that has
a subsidiary that has made) a section 936 election,
regulated investment company, real estate
investment trust, real estate mortgage investment
conduit, financial asset securitization investment
trust, or cooperative.
Exception. Generally, constructive sale treatment doesn't
apply if:
The estate or trust closed the transaction before the end
of the 30th day after the end of the year in which it was
entered into,
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The estate or trust held the appreciated position to which
the transaction relates throughout the 60-day period
starting on the date the transaction was closed, and
At no time during that 60-day period was the estate's or
trust's risk of loss reduced by holding certain other
positions.
Note. A specialized small business investment company
(SSBIC) is treated as having met test 5b above.
Qualified business. A qualified business is any business
other than the following.
One involving services performed in the fields of health,
law, engineering, architecture, accounting, actuarial
science, performing arts, consulting, athletics, financial
services, or brokerage services;
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For details and other exceptions to these rules, see Pub.
550.
Exclusion of Gain on Qualified Small Business
(QSB) Stock (Section 1202)
One whose principal asset is the reputation or skill of one
or more employees;
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Any banking, insurance, financing, leasing, investing, or
similar business;
Section 1202 allows you to exclude a portion of the eligible
gain on the sale or exchange of QSB stock held for more than
5 years. You can exclude up to 50% of the qualified gain if
you acquired the QSB stock on or before February 17, 2009.
You can exclude up to 60% of the qualified gain on certain
empowerment zone business stock for gain attributable to
periods on or before December 31, 2018. The 60% exclusion
doesn't apply to gain attributable to periods after December
exclusion is increased to 75% on the sale or exchange of
Any farming business (including the raising or harvesting
of trees);
Any business involving the production of products for
which percentage depletion can be claimed; or
Any business of operating a hotel, motel, restaurant, or
similar business.
For more details about limits and additional requirements
that may apply, see Pub. 550 or section 1202.
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2023 Instructions for Schedule D (Form 1041)
the exclusion; if you excluded 75% of the gain, enter 1/3 of the
exclusion; if you excluded 100% of the gain, don't enter an
amount.
Acquisition date of stock acquired after February 17,
2009. When determining whether the exclusion is limited to
50%, 75%, or 100% of the gain from the QSB stock, the
acquisition date is considered to be the first day the stock is
held (determined after applying the holding period rules in
section 1223).
Empowerment zone business stock. Generally, the estate
or trust can exclude up to 60% of its gain on certain QSB
stock if it meets the following additional requirements.
Gain from Form 2439. If the estate or trust received a
Form 2439, Notice to Shareholder of Undistributed
Long-Term Capital Gains, with a gain in box 1c, part or all of
that gain (which is also included in box 1a) may be eligible for
the section 1202 exclusion. Report the total gain (box 1a) on
Schedule D, line 11. In column (a) of Form 8949, Part II, enter
the name of the corporation whose stock was sold. In column
(f), enter “Q” and in column (g), enter the amount of the
excluded gain as a negative number. See the Instructions for
Form 8949, columns (f), (g), and (h). If you are completing
line 18c of Schedule D, enter as a positive number the
amount of your allowable exclusion on line 2 of the 28% Rate
Gain Worksheet, later; if you excluded 60% of the gain, enter
2/3 of the exclusion; if you excluded 75% of the gain, enter 1/3
of the exclusion; if you excluded 100% of the gain, don't enter
an amount.
1. The stock sold or exchanged was stock in a corporation
that qualified as an empowerment zone business during
substantially all of the time the estate or trust held the
stock.
2. The estate or trust acquired the stock after December
21, 2000, and before February 18, 2009.
3. The gain from the sale or exchange of the stock is
attributable to periods on or before December 31, 2018.
Gain from an installment sale of QSB stock. If all
payments aren't received in the year of sale, a sale of QSB
stock that isn't traded on an established securities market is
generally treated as an installment sale and is reported on
Form 6252. Part or all of any gain from the sale that is
reported on Form 6252 for the current year may be eligible for
the section 1202 exclusion. Report the long-term gain from
Form 6252 on Schedule D, line 11. In column (a) of Form
8949, Part II, enter the name of the corporation whose stock
was sold. In column (f), enter “Q” and in column (g), enter the
amount of the allowable exclusion as a negative number. See
the Instructions for Form 8949, columns (f), (g), and (h). If you
are completing line 18c of Schedule D, enter as a positive
number the amount of your allowable exclusion for the year
on line 2 of the 28% Rate Gain Worksheet, later; if you
excluded 60% of the gain, enter 2/3 of the exclusion; if you
excluded 75% of the gain, enter 1/3 of the exclusion; if you
excluded 100% of the gain, don't enter an amount.
Alternative minimum tax. Enter 7% of the estate's or
trust's allowable exclusion for the year on line 8 of Schedule I
(Form 1041), Alternative Minimum Tax—Estates and Trusts.
However, if the estate or trust qualifies for the 100%
exclusion, leave line 8 of Schedule I (Form 1041) blank.
Rollover of gain from QSB stock. If the estate or trust held
QSB stock (as defined earlier) for more than 6 months, it may
elect to postpone gain if it purchased other QSB stock during
the 60-day period that began on the date of the sale.
The estate or trust must recognize gain to the extent the
sale proceeds exceed the cost of the replacement stock.
Reduce the basis of the replacement stock by any postponed
gain.
The estate or trust must make the election no later than
the due date (including extensions) for filing Form 1041 for
the tax year in which the stock was sold. If the original Form
1041 was filed on time, the election may be made on an
amended return filed no later than 6 months after the due
date of the original return (excluding extensions). Write “Filed
pursuant to section 301.9100-2” at the top of the amended
return, and file it at the same address used for the original
Form 1041.
How to report. To make the election, report the sale on
Part I or Part II of Form 8949 (depending on how long the
estate or trust owned the stock), as it would be reported if the
election wasn't made. Then, enter “R” in column (f) and the
amount of the postponed gain from the section 1045 rollover
as a negative number in column (g). Put it in parentheses to
Requirement 1 will still be met if the corporation ceased to
qualify after the 5-year period that began on the date the
estate or trust acquired the stock. However, the gain that
qualifies for the 60% exclusion can't be more than the gain
the estate or trust would have had if it had sold the stock on
the date the corporation ceased to qualify.
See section 1397C for more details.
Stock acquired after February 17, 2009. The estate or
trust can exclude up to 75% of the gain if it acquired the stock
after February 17, 2009, and before September 28, 2010.
The estate or trust can exclude up to 100% of the gain if it
acquired the stock after September 27, 2010.
Pass-through entities. If the estate or trust held an interest
in a pass-through entity (a partnership, S corporation, mutual
fund, or other regulated investment company) that sold QSB
stock, the estate or trust must generally have held the interest
on the date the pass-through entity acquired the QSB stock
and at all times thereafter until the stock was sold to qualify
for the exclusion.
How to report. Report the sale or exchange of the QSB
stock on Form 8949, Part II, with the appropriate box
checked, as you would if you weren't taking the exclusion.
Enter “Q” in column (f) and enter the amount of the excluded
gain as a negative number in column (g). Put it in
parentheses to show it is negative. See the Instructions for
Form 8949, columns (f), (g), and (h). Complete all remaining
columns. If you are completing line 18c of Schedule D, enter
as a positive number the amount of your allowable exclusion
on line 2 of the 28% Rate Gain Worksheet, later; if you
excluded 60% of the gain, enter 2/3 of the exclusion; if you
excluded 75% of the gain, enter 1/3 of the exclusion; if you
excluded 100% of the gain, don't enter an amount.
Gain from Form 1099-DIV. If the estate or trust received
a Form 1099-DIV, Dividends and Distributions, with a gain in
box 2c, part or all of that gain (which is also included in
box 2a) may be eligible for the section 1202 exclusion.
Report the total gain (box 2a) on Schedule D, line 13. In
column (a) of Form 8949, Part II, enter the name of the
corporation whose stock was sold. In column (f), enter “Q”
and in column (g), enter the amount of the excluded gain as a
negative number. See the Instructions for Form 8949,
columns (f), (g), and (h). If you are completing line 18c of
Schedule D, enter as a positive number the amount of your
allowable exclusion on line 2 of the 28% Rate Gain
Worksheet, later; if you excluded 60% of the gain, enter 2/3 of
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2023 Instructions for Schedule D (Form 1041)
show it is negative. Complete all remaining columns. See the
Instructions for Form 8949, columns (f), (g), and (h).
How to report. Report the sale or exchange of qualified
community stock or a qualified community partnership
interest on Form 8949, Part II, with the appropriate box
checked, as you would if you weren't taking the exclusion.
Then, enter “X” in column (f) and enter the amount of the
exclusion as a negative number in column (g). Put it in
parentheses to show it is negative. See the instructions for
Form 8949, columns (f), (g), and (h). Complete all remaining
columns.
Exclusion of gain from DC Zone assets. If the estate or
trust sold or exchanged a District of Columbia Enterprise
Zone (DC Zone) asset that it acquired after 1997 and before
2012 and held for more than 5 years, it may be able to
exclude the amount of qualified capital gain that it would
otherwise include in income. The exclusion applies to an
interest in, or property of, certain businesses operating in the
District of Columbia.
Report the sale or exchange of qualified community
business property on Form 4797. See the Form 4797
instructions for details.
DC Zone asset. A DC Zone asset is any of the following.
DC Zone business stock.
DC Zone partnership interest.
DC Zone business property.
•
•
•
Deferral of gain invested in a Qualified Opportunity
Fund (QOF). If the estate or trust has an eligible gain
(defined below), it can invest that gain in a QOF and elect to
defer part or all of the gain that it would otherwise include in
income until the estate or trust sells or exchanges the
investment in the QOF or December 31, 2026, whichever is
earlier. If the election is made, only include gain to the extent,
if any, that the amount of realized gain is more than the
aggregate amount invested in a QOF during the 180-day
period beginning on the date the gain was realized. The
estate or trust may also be able to permanently exclude the
gain from the sale or exchange of any investment in a QOF if
the investment is held for at least 10 years.
Qualified capital gain. Qualified capital gain is any gain
recognized on the sale or exchange of a DC Zone asset that
is a capital asset or property used in a trade or business. It
doesn't include any of the following gains.
Gain attributable to periods after December 31, 2016.
Gain treated as ordinary income under section 1245.
Section 1250 gain figured as if section 1250 applied to all
depreciation rather than the additional depreciation.
Gain attributable to real property, or an intangible asset,
that isn't an integral part of a DC Zone business.
Gain from a related-party transaction. See Sales and
Exchanges Between Related Persons in chapter 2 of
Pub. 544.
•
•
•
•
•
If you elect to defer tax on an eligible gain by
investing in a QOF, you will need to complete a Form
!
CAUTION
8997 for each year you hold the investment and for
How to report. Report the sale or exchange of DC Zone
business stock or a DC Zone partnership interest on Form
8949, Part II, as you would if you weren't taking the exclusion.
Then, enter “X” in column (f). Enter the amount of the
exclusion as a negative number in column (g). Put it in
parentheses to show it is negative. See the instructions for
Form 8949, columns (f), (g), and (h). Complete all remaining
columns.
the year you dispose of the investment. If you have held that
investment for more than 5 years, see the Instructions for
Form 8997 for additional information regarding the basis of
that investment.
QOF. A QOF is any investment vehicle that is organized as
either a corporation or partnership for the purpose of
investing in eligible property that is located in a Qualified
Opportunity Zone.
Eligible gain. Gain that is eligible to be deferred if it is
invested in a QOF includes any amount treated as a capital
gain for federal income tax purposes. See section 1400Z-2
for more details on Opportunity Zones and the special rules.
How to report. Report the eligible gain as you normally
would on Schedule D (Form 1041). See the Form 8949
instructions for how to report the deferral. You also need to
attach Form 8997 annually until you dispose of the QOF
investment. See the Instructions for Form 8997.
Report the sale or exchange of DC Zone business
property on Form 4797. See the Form 4797 instructions for
details.
Exclusion of gain from qualified community assets. If
the estate or trust sold or exchanged a qualified community
asset that it acquired after 2001 and before 2010 and held for
more than 5 years, it may be able to exclude the qualified
capital gain that it would otherwise include in income. The
exclusion applies to an interest in, or property of, certain
renewal community businesses.
Qualified community asset. A qualified community
asset is any of the following.
Qualified community stock.
•
•
•
Qualified community partnership interest.
Qualified community business property.
Specific Instructions
Qualified capital gain. Qualified capital gain is any gain
recognized on the sale or exchange of a qualified community
asset but doesn't include any of the following.
The instructions below assume the estate or trust is a
cash basis calendar-year taxpayer.
!
CAUTION
Gain attributable to periods after December 31, 2014.
Gain treated as ordinary income under section 1245.
Section 1250 gain figured as if section 1250 applied to all
depreciation rather than the additional depreciation.
Gain attributable to real property, or an intangible asset,
that isn't an integral part of a renewal community
business.
•
•
•
Rounding Off to Whole Dollars
You can round off cents to whole dollars on your Schedule D
(Form 1041). If you do round to whole dollars, you must
round all amounts. To round, drop amounts under 50 cents
and increase amounts from 50 to 99 cents to the next dollar.
For example, $1.39 becomes $1 and $2.50 becomes $3.
•
Gain from a related-party transaction. See Sales and
Exchanges Between Related Persons in chapter 2 of
Pub. 544.
•
If you have to add two or more amounts to figure the
amount to enter on a line, include cents when adding the
amounts and round off only the total.
-6-
2023 Instructions for Schedule D (Form 1041)
If you are entering amounts that include cents, make sure
to include the decimal point. There is no cents column on the
form.
box 1d) of $6,000 and cost or other basis (in box 1e) of
$2,000. Box 12 isn't checked, meaning that basis wasn't
reported to the IRS. Don't report this transaction on line 1a or
line 8a. Instead, report the transaction on Form 8949.
Complete all necessary pages of Form 8949 before
completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form
1041).
Disposal of QOF investment
If you disposed of any investment in a QOF during the tax
year, check the box on page 1 of Schedule D and see the
Instructions for Form 8949 for additional reporting
requirements. You must also complete Part III of Form 8997.
See the Instructions for Form 8997 for details.
Example 3—adjustment. The estate or trust received a
Form 1099-B showing proceeds (in box 1d) of $6,000 and
cost or other basis (in box 1e) of $2,000. Box 12 is checked,
meaning that basis was reported to the IRS. However, the
basis shown in box 1e is incorrect. Don't report this
transaction on line 1a or line 8a. Instead, report the
transaction on Form 8949. See the Instructions for Form
8949, columns (f), (g), and (h). Complete all necessary
pages of Form 8949 before completing line 1b, 2, 3, 8b, 9, or
10 of Schedule D (Form 1041).
Lines 1a and 8a—Transactions Not Reported on
Form 8949
The estate or trust can report on line 1a (for short-term
transactions) or line 8a (for long-term transactions) the
aggregate totals from any transactions (except sales of
collectibles) for which:
The estate or trust received a Form 1099-B, Proceeds
From Broker and Barter Exchange Transactions (or
substitute statement), that shows basis was reported to
the IRS and doesn't show any adjustments in boxes 1f or
1g;
•
Lines 1b, 2, 3, 8b, 9, and 10, Column
(h)—Transactions Reported on Form 8949
Figure gain or loss on each line. First, subtract the cost or
other basis in column (e) from the proceeds (sales price) in
column (d). Then, combine the result with any adjustments in
column (g). Enter the gain or loss in column (h). Enter
negative amounts in parentheses.
The Ordinary checkbox in box 2 of Form 1099-B is not
checked;
•
•
•
The QOF checkbox in box 3 of Form 1099-B is not
checked;
The estate or trust isn't electing to defer income due to an
investment in a QOF and isn't terminating deferral from
an investment in a QOF; and
Example 1—gain. Column (d) is $6,000 and column (e) is
$2,000. Enter $4,000 in column (h).
Example 2—loss. Column (d) is $6,000 and column (e) is
The estate or trust doesn't need to make any
adjustments to the basis or type of gain or loss (short
term or long term) reported on Form 1099-B (or
substitute statement), or to its gain or loss.
•
$8,000. Enter ($2,000) in column (h).
Example 3—adjustment. Column (d) is $6,000, column
(e) is $2,000, and column (g) is ($1,000). Enter $3,000
($6,000 − $2,000 − $1,000) in column (h).
See How To Complete Form 8949, Columns (f) and (g), in
the Form 8949 instructions for details about possible
adjustments to your gain or loss.
Lines 4 and 11
Undistributed capital gains. Include on line 11, column
(h), the amount from box 1a of Form 2439. This amount
represents the estate's or trust's share of undistributed
long-term capital gains from a regulated investment company
(mutual fund) or real estate investment trust.
If there is an amount in box 1b of Form 2439, include that
amount on line 11 of the Unrecaptured Section 1250 Gain
Worksheet, later, if you are required to complete line 18b,
column (2), of the schedule. If there is an amount in box 1c of
Form 2439, see Exclusion of Gain on Qualified Small
Business (QSB) Stock (Section 1202), earlier. If there is an
amount in box 1d of Form 2439, include that amount on line 4
of the 28% Rate Gain Worksheet, later.
Enter on Form 1041, Schedule G, Part II, line 16, the tax
paid as reported in box 2 of Form 2439. Increase the basis of
the stock by the excess of the amount included in income
over the amount of the credit for tax paid. See Pub. 550 for
more details.
Installment sales. If the estate or trust sold property (other
than publicly traded stocks or securities) at a gain during the
tax year and will receive a payment in a later tax year, you
generally report the sale on the installment method and file
Form 6252, unless you elect not to do so.
If the estate or trust chooses to report these transactions
on lines 1a and 8a, don't report them on Form 8949. You
don't need to attach a statement to explain the entries on
lines 1a and 8a.
Figure gain or loss on each line. First, subtract the cost or
other basis in column (e) from the proceeds (sales price) in
column (d). Enter the gain or loss in column (h). Enter
negative amounts in parentheses.
Example 1—basis reported to the IRS. The estate or
trust received a Form 1099-B reporting the sale of stock held
for 3 years. It shows proceeds (in box 1d) of $6,000 and cost
or other basis (in box 1e) of $2,000. Box 12 is checked,
meaning that basis was reported to the IRS. The estate or
trust doesn't need to make any adjustments to the amounts
reported on Form 1099-B or enter any codes. This was the
estate’s or trust's only 2023 transaction. Instead of reporting
this transaction on Form 8949, the estate or trust can enter
$6,000 on Schedule D, line 8a, column (d); $2,000 in column
(e); and $4,000 ($6,000 – $2,000) in column (h).
If you had a second transaction that was the same except
that the proceeds were $5,000 and the basis was $3,000,
combine the two transactions. Enter $11,000 ($6,000 +
$5,000) on Schedule D, line 8a, column (d); $5,000 ($2,000 +
$3,000) in column (e); and $6,000 ($11,000 – $5,000) in
column (h).
Also, use Form 6252 to report any payment received in
2023 from a sale made in an earlier tax year that was
reported on the installment method.
Example 2—basis not reported to the IRS. The estate
To elect out of the installment method, report the full
or trust received a Form 1099-B showing proceeds (in
amount of the gain on Form 8949 on a timely filed return
-7-
2023 Instructions for Schedule D (Form 1041)
(including extensions) for the year of the sale. If the original
return was filed timely, the election may be made on an
amended return filed no later than 6 months after the due
date of the original return (excluding extensions). Write “Filed
pursuant to section 301.9100-2” at the top of the amended
return, and file it at the same address as the original Form
1041.
Exchange of “like-kind” property. Generally, no gain or
loss is recognized when real property held for productive use
in a trade or business or for investment is exchanged solely
for real property of a like kind to be held either for productive
use in a trade or business or for investment. However, if a
trust exchanges like-kind real property with a related person
(see Related Persons, earlier) and within 2 years of the last
transfer that was part of the exchange, the related person
disposes of the real property, or the trust disposes of the real
property received in exchange from the related person, then
the original exchange will not qualify for nonrecognition. See
section 1031(f) for exceptions.
line 17. However, don't take the section 1202 exclusion on
gain from the sale or exchange of qualified small business
stock into account when figuring net long-term capital gain or
loss allocable to the beneficiaries.
Line 18b—Unrecaptured Section 1250 Gain
Complete the Unrecaptured Section 1250 Gain Worksheet,
later, if any of the following apply.
During the tax year, the estate or trust sold or otherwise
disposed of section 1250 property (generally, real
property that was depreciated) held more than 1 year.
The estate or trust received installment payments during
the tax year for section 1250 property held more than 1
year and is reporting gain on the installment method.
The estate or trust received a Schedule K-1 from an
estate or trust, partnership, or S corporation that reports
“unrecaptured section 1250 gain” for the tax year.
The estate or trust received a Form 1099-DIV or Form
2439 from a real estate investment trust or regulated
investment company (including a mutual fund) that
reports “unrecaptured section 1250 gain” for the tax year.
The estate or trust reported a long-term capital gain from
the sale or exchange of an interest in a partnership that
owned section 1250 property.
•
•
•
•
Complete and attach Form 8824 to Form 1041 for each
exchange.
•
Line 13—Capital Gain Distributions
Enter as a long-term capital gain on line 13, column (h), the
total capital gain distributions paid during the year, regardless
of how long the estate or trust held its investment. This
amount is reported in box 2a of Form 1099-DIV. If there is an
amount in box 2b, include that amount on line 11 of the
Unrecaptured Section 1250 Gain Worksheet, later, if the
worksheet is required. If there is an amount in box 2c, see
(Section 1202), earlier. If there is an amount in box 2d of
Form 1099-DIV, include the amount on line 4 of the 28% Rate
Gain Worksheet, later.
Instructions for the Unrecaptured Section 1250
Gain Worksheet
Lines 1 through 3. If the estate or trust had more than one
property, complete lines 1 through 3 for each property on a
separate worksheet. Next, enter the total amount for all
properties on line 3; then, go to line 4.
Line 4. To figure the amount to enter on line 4, follow the
steps below for each installment sale of trade or business
property held more than 1 year.
Step 1. Figure the smaller of (a) the depreciation allowed
or allowable, or (b) the total gain for the sale. This is the
smaller of line 22 or line 24 of the 2023 Form 4797 (or the
comparable lines of Form 4797 for the year of sale) for that
property.
Step 2. Reduce the amount figured in step 1 by any
section 1250 ordinary income recapture for the sale. This is
the amount from line 26g of the 2023 Form 4797 (or the
comparable line of Form 4797 for the year of sale) for that
property. The result is the total unrecaptured section 1250
gain that must be allocated to the installment payments
received from the sale.
Step 3. Generally, the amount of section 1231 gain on
each installment payment is treated as unrecaptured section
1250 gain until the total unrecaptured section 1250 gain
figured in step 2 has been used in full. Figure the amount of
gain treated as unrecaptured section 1250 gain for
installment payments received during the tax year as the
smaller of (a) the amount from line 26 or line 37 of the 2023
Form 6252, whichever applies; or (b) the amount of
unrecaptured section 1250 gain remaining to be reported.
This amount is generally the total unrecaptured section 1250
gain for the sale reduced by all gain reported in prior years
(excluding section 1250 ordinary income recapture).
However, if you chose not to treat all of the gain from
payments received after May 6, 1997, and before August 24,
1999, as unrecaptured section 1250 gain, use only the
amount you chose to treat as unrecaptured section 1250 gain
for those payments to reduce the total unrecaptured section
Line 17, Column (1)—Beneficiaries' Net
Short-Term Capital Gain or Loss
Enter the amount of net short-term capital gain or loss
allocable to the beneficiary or beneficiaries. Include only
those short-term capital losses that are taken into account in
determining the amount of gain from the sale or exchange of
capital assets that is paid, credited, or required to be
distributed to any beneficiary during the tax year. See
Regulations section 1.643(a)-3 for more information about
allocation of capital gains and losses.
If the losses from the sale or exchange of capital assets
are more than the gains, the net loss must be allocated to the
estate or trust and not to the beneficiaries.
Line 17, Column (2)—Estate's or Trust's Net
Short-Term Capital Gain or Loss
Enter the amount of the net short-term capital gain or loss
allocable to the estate or trust. Include any capital gain paid
or permanently set aside for a charitable purpose specified in
section 642(c).
Line 17, Column (3)—Total
Enter the total of the amounts entered in columns (1) and (2).
The amount in column (3) should be the same as the amount
on line 7.
Line 18a—Net Long-Term Capital Gain or Loss
Allocate the net long-term capital gain or loss on line 18a in
the same manner as the net short-term capital gain or loss on
-8-
2023 Instructions for Schedule D (Form 1041)
Keep for Your Records
Unrecaptured Section 1250 Gain Worksheet—Line 18b
If the estate or trust isn't reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to line 10.
1. If the estate or trust has a section 1250 property in Part III of Form 4797 for which you made an entry in
Part I of Form 4797 (but not on Form 6252), enter the smaller of line 22 or line 24 of Form 4797 for that
property. If the estate or trust didn't have any such property, go to line 4. If it had more than one such
property, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3.
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252 from
installment sales of trade or business property held more than 1 year (see instructions) . . . . . . . . . . . .
4.
5. Enter the total of any amounts reported to the estate or trust on a Schedule K-1 from a partnership or
an S corporation as “unrecaptured section 1250 gain” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6.
6. Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Enter the smaller of line 6 or the gain from Form 4797, line 7 . . . . . . . . . . . . . . . .
8. Enter the amount, if any, from Form 4797, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8.
9. Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Enter the amount of any gain from the sale or exchange of an interest in a partnership attributable to
9.
unrecaptured section 1250 gain (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the total of any amounts reported to the estate or trust on a Schedule K-1, Form 1099-DIV, or
Form 2439 as “unrecaptured section 1250 gain” from an estate, trust, real estate investment trust, or
mutual fund (or other regulated investment company) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total of any unrecaptured section 1250 gain from sales (including installment sales) or other
dispositions of section 1250 property held more than 1 year for which you didn't make an entry in Part I
of Form 4797 for the year of sale (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Add lines 9 through 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.
14. If the estate or trust had any section 1202 gain or collectibles gain or (loss), enter
the total of lines 1 through 4 of the 28% Rate Gain Worksheet. Otherwise,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Enter the (loss), if any, from Schedule D, line 7. If Schedule D, line 7, is zero or a
(
(
)
)
gain, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Enter the estate's or trust's long-term capital loss carryovers from Schedule D,
line 15, and from Schedule K-1 (Form 1041), box 11, code D, from another estate
or trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Combine lines 14 through 16. If the result is a (loss), enter it as a positive amount. If the result is zero or
a gain, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Unrecaptured section 1250 gain. Subtract line 17 from line 13. If zero or less, enter -0-. Enter the
result here and in the appropriate columns of Schedule D, line 18b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
1250 gain remaining to be reported for the sale. Include this
amount on line 4.
Line 12. An example of an amount reported on line 12 as an
“other disposition” includes unrecaptured section 1250 gain
from the sale of a vacation home previously used as a rental
property that was converted to personal use before the sale.
To figure the amount to enter on line 12, follow the applicable
instructions below.
Installment sales. To figure the amount to include on
line 12, follow the steps below for each installment sale of
property held more than 1 year for which you didn't make an
entry in Part I of Form 4797 for the year of sale.
Step 1. Figure the smaller of (a) the depreciation allowed
or allowable, or (b) the total gain for the sale. This is the
Line 10. Include on line 10 the estate's or trust's share of the
partnership's unrecaptured section 1250 gain that would
result if the partnership had transferred all of its section 1250
property in a fully taxable transaction immediately before the
estate or trust sold or exchanged its interest in that
partnership. If the estate or trust recognized less than all of
the realized gain, the partnership will be treated as having
transferred only a proportionate amount of each section 1250
property.
-9-
2023 Instructions for Schedule D (Form 1041)
Keep for Your Records
28% Rate Gain Worksheet—Line 18c
1.
Enter the total of all collectibles gain or (loss) from items reported on Form 8949, Part II . . . . . . . . . . . . . . . . 1.
2. Enter as a positive number the total of:
Any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with code “Q” in
column (f), for which you excluded 50% of the gain;
•
•
•
2/3 of any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with code
“Q” in column (f), for which you excluded 60% of the gain; and
. . . . .2.
1/3 of any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with code
“Q” in column (f), for which you excluded 75% of the gain.
Don't make an entry for any section 1202 exclusion that is 100% of the gain.
3. Enter the total of all collectibles gain or (loss) from Form 4684, line 4 (but only if Form 4684, line 15, is more
than zero); Form 6252; Form 6781, Part II; and Form 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the total of any collectibles gain reported to the estate or trust on:
Form 1099-DIV, box 2d;
•
•
•
. . . . . 4.
Form 2439, box 1d; and
Schedule K-1 from a partnership, S corporation, estate, or trust.
5. Enter the estate's or trust's long-term capital loss carryovers from Schedule D, line 15, and from box 11,
(
(
)
)
code D of Schedule K-1 (Form 1041) from another estate or trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6.
If Schedule D, line 7 is a (loss), enter that (loss) here. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Combine lines 1 through 6. If zero or less, enter -0-. If more than zero, also enter this amount in the
appropriate columns of Schedule D, line 18c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
smaller of line 22 or line 24 of the 2023 Form 4797 (or
comparable lines of Form 4797 for the year of sale) for that
property.
Step 2. Reduce the amount figured in step 1 by any
section 1250 ordinary income recapture for the sale. This is
the amount from line 26g of the 2023 Form 4797 (or the
comparable line of Form 4797 for the year of sale) for that
property. The result is the total unrecaptured section 1250
gain that must be allocated to the installment payments
received from the sale.
Line 18c—28% Rate Gain
Complete the 28% Rate Gain Worksheet, above, if lines 18a
and 19 of column (3) are both greater than zero and at least
one of the following applies.
The estate or trust reported in Part II of Form 8949 a
section 1202 exclusion from the eligible gain on qualified
small business stock (as discussed earlier), or
The estate or trust reported in Part II of Form 8949 a
collectibles gain or loss.
•
•
A collectibles gain or loss is any long-term gain or
Step 3. Generally, the amount of capital gain on each
installment payment is treated as unrecaptured section 1250
gain until the total unrecaptured section 1250 gain figured in
step 2 has been used in full. Figure the amount of gain
treated as unrecaptured section 1250 gain for installment
payments received during the tax year as the smaller of (a)
the amount from line 26 or line 37 of the 2023 Form 6252,
whichever applies; or (b) the amount of unrecaptured section
1250 gain remaining to be reported. This amount is generally
the total unrecaptured section 1250 gain for the sale reduced
by all gain reported in prior years (excluding section 1250
ordinary income recapture). However, if you chose not to
treat all of the gain from payments received after May 6,
1997, and before August 24, 1999, as unrecaptured section
1250 gain, use only the amount you chose to treat as
unrecaptured section 1250 gain for those payments to
reduce the total unrecaptured section 1250 gain remaining to
be reported for the sale. Include this amount on line 12.
Other sales or dispositions of section 1250 property.
For each sale of property held more than 1 year (for which an
entry wasn't made in Part I of Form 4797), figure the smaller
of (a) the depreciation allowed or allowable, or (b) the total
gain for the sale. This amount is the smaller of line 22 or
line 24 of Form 4797 for that property. Then, reduce that
amount by any section 1250 ordinary income recapture for
the sale. This is the amount from line 26g of Form 4797 for
that property. The result is the total unrecaptured section
1250 gain for the sale. Include this amount on line 12.
deductible long-term loss from the sale or exchange of a
collectible that is a capital asset.
Collectibles include works of art, rugs, antiques, metals
(such as gold, silver, and platinum bullion), gems, stamps,
coins, alcoholic beverages, and certain other tangible
property.
Also include gain (but not loss) from the sale or exchange
of an interest in a partnership, S corporation, or trust held for
more than 1 year that is attributable to the unrealized
appreciation of collectibles. For details, see Regulations
section 1.1(h)-1. Attach the statement required under
Regulations section 1.1(h)-1(e) to Schedule D.
Line 19
Trusts filing Schedule D (Form 1041) with Form
990-T, Exempt Organization Business Income Tax
!
CAUTION
Return (and proxy tax under section 6033(e)), that
have more than one unrelated trade or business must
compute unrelated business taxable income separately for
each trade or business. The separate amount from each
unrelated trade or business must be reported on line 4a of
Part I of the Schedule A (Form 990-T), Unrelated Business
Taxable Income From an Unrelated Trade or Business,
completed for the specific trade or business.
-10-
2023 Instructions for Schedule D (Form 1041)
Keep for Your Records
Capital Loss Carryover Worksheet
Use this worksheet to figure the estate's or trust's capital loss carryovers from 2023 to 2024 if Schedule D, line 20, is a loss and
(a) the loss on Schedule D, line 19, column (3), is more than $3,000; or (b) Form 1041, page 1, line 23, is a loss.
1. Enter taxable income or (loss) from Form 1041, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the loss from line 20 of Schedule D as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Enter the amount from Form 1041, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Adjusted taxable income. Combine lines 1, 2, and 3. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . .
5. Enter the smaller of line 2 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2.
3.
4.
5.
Note: If line 7 of Schedule D is a loss, go to line 6; otherwise, enter -0- on line 6 and go to
line 10.
6. Enter the loss from Schedule D, line 7, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Enter the gain, if any, from Schedule D, line 16. If that line is blank or shows a loss,
6.
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Add lines 5 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9.
9. Short-term capital loss carryover to 2024. Subtract line 8 from line 6. If zero or less, enter -0-. If this
is the final return of the estate or trust, also enter on Schedule K-1 (Form 1041), box 11, using
code C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note: If line 16 of Schedule D is a loss, go to line 10; otherwise, skip lines 10 through 14.
10. Enter the loss from Schedule D, line 16, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the gain, if any, from Schedule D, line 7. If that line is blank or shows a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Subtract line 6 from line 5. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Add lines 11 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Long-term capital loss carryover to 2024. Subtract line 13 from line 10. If zero or less, enter -0-. If
this is the final return of the estate or trust, also enter on Schedule K-1 (Form 1041), box 11, using
code D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
691(c) deduction was claimed, you must reduce the amount
Part IV—Capital Loss Limitation
on Form 1041, page 1, line 2b(2), or Schedule D, line 22
(line 7 of the Schedule D Tax Worksheet, if applicable), by the
portion of the section 691(c) deduction claimed on Form
1041, page 1, line 19, that is attributable to the estate's or
trust's portion of qualified dividends or capital gains.
If the sum of all capital losses is more than the sum of all
capital gains, the capital losses are allowed as a deduction,
but only to the extent of the smaller of the net loss or $3,000.
For any year (including the final year) in which capital
losses exceed capital gains, the estate or trust may have a
capital loss carryover. Use the Capital Loss Carryover
Worksheet, above, to figure any capital loss carryover. A
capital loss carryover may be carried forward indefinitely.
Capital losses keep their character as either short-term or
long-term when carried over to the following year.
Line 45
If the tax using the maximum capital gains rates is less than
the regular tax, enter the amount from line 45 on line 1a of
Form 1041, Schedule G, Part I.
Line 20
Schedule D Tax Worksheet
Trusts filing Schedule D (Form 1041) with Form
990-T that have more than one unrelated trade or
If you completed the Schedule D Tax Worksheet next instead
of Part V of Schedule D, be sure to enter the amount from
line 44 of the worksheet on line 1a of Form 1041,
Schedule G, Part I.
!
CAUTION
business must compute unrelated business taxable
income separately for each trade or business. The separate
amount from each unrelated trade or business must be
reported on line 4c of Part I of the Schedule A (Form 990-T)
completed for the specific trade or business.
Part V—Tax Computation Using Maximum
Capital Gains Rates
Line 26
If the estate or trust received qualified dividends or capital
gains as income in respect of a decedent and a section
-11-
2023 Instructions for Schedule D (Form 1041)
Keep for Your Records
Schedule D Tax Worksheet
Complete this worksheet only if:
On Schedule D, line 18b, column (2), or line 18c, column (2), is more than zero, or
•
•
•
Both line 2b(1) of Form 1041 and line 4g of Form 4952, Investment Interest Expense Deduction, are more than zero, or
There are amounts on lines 4e and 4g of Form 4952.
Exception: Don't use this worksheet to figure the estate's or trust's tax if line 18a, column (2), or line 19, column (2), of Schedule D or Form
1041, line 23, is zero or less; instead, see the Instructions for Form 1041, Schedule G, Part I, line 1a.
1. Enter the estate's or trust's taxable income from Form 1041, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2. Enter qualified dividends, if any, from Form 1041, line 2b(2) . . . . . . . .
3. Enter the amount from Form 4952, line 4g . . . . . . . . . . 3.
2.
4. Enter the amount from Form 4952, line 4e* . . . . . . . . .
5. Subtract line 4 from line 3. If zero or less, enter -0- . . . . . . . . . . . . . . .
4.
5.
6. Subtract line 5 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Enter the smaller of line 18a, column (2), or line 19, column (2),
6.
9.
from Schedule D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8.
8. Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Add lines 18b, column (2), and 18c, column (2), from Schedule D . . . . . . . . . . . . . . . . . 11.
12. Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Subtract line 12 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Subtract line 13 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Enter the smaller of line 1 or $3,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17a. Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . 17a.
17b. Enter the smaller of line 1 or $10,550 . . . . . . . . . . . . . . . . . . . . . . . . 17b.
17c. Enter the smaller of line 14 or line 17b . . . . . . . . . . . . . . . . . . . . . . . . 17c.
18. Enter the larger of line 17a or line 17c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.
19.
19. Subtract line 16 from line 15. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If lines 1 and 15 are the same, skip lines 20 through 40 and go to line 41. Otherwise, go to line 20.
20. Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.
21. Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.
22. Subtract line 21 from line 20. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23. Enter the smaller of line 1 or $14,650 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.
22.
24. Add lines 18 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24.
25. Subtract line 24 from line 23. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.
26. Enter the smaller of line 22 or line 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26.
27. Multiply line 26 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.
28. Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.
29. Add lines 19 and 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.
If lines 1 and 29 are the same, skip lines 30 through 40 and go to line 41. Otherwise, go to line 30.
30. Subtract line 29 from line 20. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30.
31. Multiply line 30 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.
32. Enter the smaller of line 9 (above) or line 18b, column (2) (from Schedule D) . . . . . . . . . 32.
33. Add lines 10 and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34. Enter the amount from line 1 above . . . . . . . . . . . . . . . . . . . . . . . . . .
33.
34.
35. Subtract line 34 from line 33. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.
36. Subtract line 35 from line 32. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36.
37. Multiply line 36 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.
If Schedule D, line 18c, column (2), is zero or blank, skip lines 38 through 40 and go to line 41. Otherwise,
go to line 38.
38. Add lines 18, 19, 26, 30, and 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.
39. Subtract line 38 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.
40. Multiply line 39 by 28% (0.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.
41. Figure the tax on the amount on line 18. Use the 2023 Tax Rate Schedule in the Instructions for Form 1041 . . . . . . . . . . 41.
42. Add lines 27, 31, 37, 40, and 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.
43. Figure the tax on the amount on line 1. Use the 2023 Tax Rate Schedule in the Instructions for Form 1041 . . . . . . . . . . . 43.
44. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 42 or line 43
here and on Form 1041, Schedule G, Part I, line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.
*If applicable, enter instead the smaller amount entered on the dotted line next to line 4e of Form 4952.
-12-
2023 Instructions for Schedule D (Form 1041)