Schedule D - Capital Gains and Losses

2015

Instructions for Schedule D
(Form 1041)

Department of the Treasury
Internal Revenue Service

Capital Gains and Losses
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Schedule D
and its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form1041.

What's New
Capital gains and qualified divi­
dends. For tax year 2015, the 20%
maximum capital gain rate applies to
estates and trusts with income above
$12,300. The 0% and 15% rates
continue to apply to certain threshold
amounts. The 0% rate applies up to
$2,500. The 15% rate applies to
amounts over $2,500 and up to
$12,300.
100% exclusion of gain on qualified
small business (QSB) stock. You can
exclude up to 100% of the gain on QSB
stock that you acquired after September
27, 2010, and held for more than 5
years.
Consistent basis reporting between
estate and person acquiring proper­
ty from a decedent. Section 2004 of
Public Law 114-41, Surface
Transportation and Veterans Health
Care Choice Improvement Act of 2015,
has two new major requirements.
1. An estate (or other person)
required to file an estate tax return after
July 31, 2015, must provide a statement
that includes the estate tax value of
property reported on the return to both
the IRS and any beneficiary who
receives property from the estate.
2. If the property increases the
estate tax liability, the beneficiary must
use a basis consistent with the estate
tax value of the property to determine
his or her gain or loss when the property
is sold or deemed sold.
Notice 2015-57, 2015-36 I.R.B. 294,
available at www.irs.gov/irb/
2015–36_IRB/ar12.html, delayed the
due date for the reporting requirements
in (1) above until February 29, 2016.
Guidance and other information
Jan 05, 2016

necessary to fulfill the new requirements
are being developed. If you believe the
new requirements impact this estate,
trust, or its beneficiaries, please see
www.irs.gov/form706.

Reminders
Form 1041 E­filing. When e-filing
Form 1041, 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.

General Instructions
Any reference in these instructions to
“you” means the fiduciary of the estate
or trust.

Purpose of Schedule

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.
Use Schedule D to report the
following.
The overall capital gains and losses
from transactions reported on Form
8949.
Certain transactions that the estate or
trust doesn't have to report on Form
8949.
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.
Undistributed long-term capital gains
from Form 2439.
Capital gain or loss from
partnerships, S corporations, or other
estates or trusts.
A capital loss carryover from 2014 to
2015.
Cat. No. 11378R

For more information, see Pub. 544,
Sales and Other Dispositions of Assets,
and the Instructions for Form 8949.

Other Forms You May Have To
File

Use Form 8949 to report the sale or
exchange of a capital asset (defined
later) not reported on another form or
schedule. See Lines 1a and 8a , later,
for more information about when Form
8949 is and isn't needed.

Use Form 4797 to report the
following.
1. The sale or exchange of:
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.
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.
4. Ordinary loss on the sale,
exchange, or worthlessness of small
business investment company (section
1242) stock.
5. Ordinary loss on the sale,
exchange, or worthlessness of small
business (section 1244) stock.
Use Form 4684 to report involuntary
conversions of property due to casualty
or theft.
Use Form 6781 to report gains and
losses from section 1256 contracts and
straddles.

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 property for property of a like
kind.

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.

Special Rules for Determining
Basis of Estate and Trust
Property

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.
Depreciable or real property used in a
trade or business, even if it's fully
depreciated.
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.
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.
Certain U.S. Government
publications not purchased at the public
sale price.
Certain “commodities derivative
financial instruments” held by a dealer
(see section 1221(a)(6)).
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.

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 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 for a discussion of the
valuation of qualified real property under
section 2032A.
Basis of property acquired from a
decedent who died in 2010. See
Pub. 4895, Tax Treatment of Property
Acquired 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 election 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.
Carryover basis. Carryover basis
determined under repealed section
1023 applies to property acquired from

Capital Asset

You may find additional helpful
information in the following publications.
Pub. 544, Sales and Other
Dispositions of Assets.
Pub. 551, Basis of Assets.

Short­Term or Long­Term

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 1 year or less. The holding
period for long-term capital gains and
­2­

losses is more than 1 year. Property
acquired from a decedent is treated as
held for more than 1 year.
Note. Long-term treatment may not
apply to property acquired from a
decedent who died in 2010 where the
estate elected the use of carryover
basis if the property was held less than
1 year. See Pub. 4895 for details.
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.

Section 643(e)(3) Election

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 fair market value
(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.
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.

Related Persons

A trust can't deduct a loss from the sale
or exchange of property directly or
indirectly between any of the following:
A grantor and a fiduciary of a trust,
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
An executor of an estate and a
beneficiary of that estate, except when
the sale or exchange is to satisfy a
pecuniary bequest (that is, a bequest of
a sum of money).

2015 Instructions for Schedule D (Form 1041)

Items for Special Treatment
Bonds and other debt instruments.
See Pub. 550, Investment Income and
Expenses.
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
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).
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).
Gain on disposition of stock in
domestic international sales
corporations (DISC) (section 995(c)).
Gain on the sale or exchange of stock
in certain foreign corporations (section
1248).
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.
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.
The sale or other disposition of a
partnership interest may result in
ordinary income, collectibles gain, or
unrecaptured section 1250 gain.
Gain or loss on the disposition of
securities futures contracts. See Pub.
550.
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.
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.
Certain virtual currencies. See Notice
2014-21, 2014-16 I.R.B 938.
NAV method for certain money
market funds. Report capital gain or loss
determined under the net asset value
(NAV) method with respect to shares in
a floating-NAV 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.

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.
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”),

2015 Instructions for Schedule D (Form 1041)

­3­

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
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).
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,
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.
For details and other exceptions to
these rules, see Pub. 550.

Exclusion of Gain on Qualified
Small Business (QSB) Stock
(Section 1202)

Section 1202 provides for an exclusion
of 50% of the eligible gain on the sale or
exchange of QSB stock. This exclusion
can be up to 60% for certain
empowerment zone business stock.
The exclusion is increased to 75% on
the sale or exchange of 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. The section 1202
exclusion applies only to QSB stock
held for more than 5 years.
To be QSB stock, the stock must
meet all of the following tests:
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.
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 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.
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
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,
REMIC, FASIT, or cooperative.
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;
One whose principal asset is the
reputation or skill of one or more
employees;
Any banking, insurance, financing,
leasing, investing, or similar business;
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.
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).

excluded 100% of the gain, don't enter
an amount.

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.
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.

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; 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.

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.
Pass­through 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 generally must
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; 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
­4­

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; 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 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 generally
is 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),

2015 Instructions for Schedule D (Form 1041)

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; 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 9 of
Schedule I (Form 1041). However, if the
estate or trust qualifies for the 100%
exclusion, leave line 9 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 show it is negative.
Complete all remaining columns. See
the Instructions for Form 8949, columns
(f), (g), and (h).
Rollover of gain from empowerment
zone assets. If the estate or trust sold
a qualified empowerment zone asset
that the estate or trust held for more
than 1 year, it may be able to elect to

postpone part or all of the gain that it
would otherwise include in income. If
the election is made, the gain on the
sale generally is recognized only to the
extent, if any, that the amount realized
on the sale exceeds the cost of qualified
empowerment zone assets
(replacement property) the estate or
trust purchased during the 60-day
period beginning on the date of the sale.
See sections 1397B and 1397C for
the definition of empowerment zone and
enterprise zone business and for details
regarding the rules that apply to this
election.
How to report. Report the sale on Part
II of Form 8949 as the estate or trust
would if it weren't making the election.
Enter “R” in column (f). Enter the
amount of the postponed 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.
Exclusion of gain from DC Zone as­
sets or qualified community assets.
If the estate or trust sold or exchanged a
District of Columbia Enterprise Zone
asset or a qualified community asset
that it 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 of gain from DC Zone assets
applies to an interest in, or property of,
certain businesses operating in the
District of Columbia. See section 1400B
for more details on this exclusion. The
exclusion of gain from qualified
community assets applies to an interest
in, or property of, certain renewal
community businesses. See section
1400F for more details on this
exclusion.
How to report. Report the sale or
exchange of a “DC Zone asset” or
“qualified community asset” on Form
8949, Part II, with the appropriate box
checked, as it would be reported if the
exclusion wasn't taken. Enter “X” in
column (f) and the amount of the
allowable exclusion as a negative
number in column (g). Put it in
parentheses to show it is negative.
Complete all remaining columns. See
the Instructions for Form 8949, columns
(f), (g), and (h).

Specific Instructions

!

CAUTION

2015 Instructions for Schedule D (Form 1041)

The instructions below assume
the estate or trust is a cash
basis calendar year taxpayer.
­5­

Rounding Off 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.
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.

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 (or substitute statement) that
shows basis was reported to the IRS
and doesn't show any adjustments in
box 1g, and
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.
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.
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 3 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 or trust's only 2015
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).
Example 2 – basis not reported to
the IRS. 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 3 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).
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 3 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 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.
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 $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).

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.
Enter on Form 1041, line 24f , 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.
Also, use Form 6252 to report any
payment received in 2015 from a sale
made in an earlier tax year that was
reported on the installment method.
To elect out of the installment
method, report the full amount of the
gain on Form 8949 on a timely filed
return (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 “like­kind” property.
Generally, no gain or loss is recognized
when property held for productive use in
a trade or business or for investment is
exchanged solely for 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
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 property, or the trust
disposes of the property received in
exchange from the related person, then
­6­

the original exchange will not qualify for
nonrecognition. See section 1031(f) for
exceptions.
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 Exclusion of Gain on Qualified
Small Business (QSB) Stock (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.

Line 17, Column
(1)—Beneficiaries' Net
Short­Term 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 Short­Term
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.

2015 Instructions for Schedule D (Form 1041)

Unrecaptured Section 1250 Gain Worksheet—Line 18b

Keep for Your Records

If the estate or trust is not 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 did not have any such property, go to line 4. If it had more than one such
property, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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) . . . . . . . . . . . .
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” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. Enter the smaller of line 6 or the gain from Form 4797, line 7 . . . . . . . . . . . . . . . . 7.
8. Enter the amount, if any, from Form 4797, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . 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
unrecaptured section 1250 gain (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 did not make an entry in Part
I of Form 4797 for the year of sale (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13. Add lines 9 through 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 C, 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- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Line 18a—Net Long­Term
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
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, earlier, 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.

Instructions for the
Unrecaptured Section 1250
Gain Worksheet
Lines 1 through 3. If the estate or trust
had more than one property, complete

2015 Instructions for Schedule D (Form 1041)

­7­

1.
2.
3.
4.
5.
6.

9.
10.
11.
12.
13.

17.
18.

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 2015
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 2015
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.

the amount to enter on line 12, follow
the applicable instructions below.

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
2015 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 4.

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.

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.
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

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 2015
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 2015
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
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
2015 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

­8­

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.

Line 18c—28% Rate Gain

Complete the 28% Rate Gain
Worksheet, later, 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 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.

2015 Instructions for Schedule D (Form 1041)

28% Rate Gain Worksheet—Line 18c

.

Keep for Your Records

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”
. . . . 2.
in column (f), for which you excluded 60% of the gain; and
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.
Do not 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,
5. (
code C of Schedule K-1 (Form 1041) from another estate or trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.

2015 Instructions for Schedule D (Form 1041)

­9­

)
)

Capital Loss Carryover Worksheet

Keep for Your Records

Use this worksheet to figure the estate's or trust's capital loss carryovers from 2015 to 2016 if Schedule D, line 20
is a loss and (a) the loss on Schedule D, line 19, col. (3) is more than $3,000 or (b) Form 1041, page 1, line 22 is a
loss.
1. Enter taxable income or (loss) from Form 1041, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the loss from line 20 of Schedule D as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter amount from Form 1041, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Adjusted taxable income. Combine lines 1, 2, and 3. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter the smaller of line 2 or line 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 loss from Schedule D, line 7 as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Enter gain, if any, from Schedule D, line 16. If that line is blank or shows a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Add lines 5 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Short­term capital loss carryover to 2016. 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
B ....................................................................................
Note: If line 16 of Schedule D is a loss, go to line 10; otherwise, skip lines 10 through 14.
10. Enter loss from Schedule D, line 16, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. Enter gain, if any, from Schedule D, line 7. If that line is blank or shows a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12. Subtract line 6 from line 5. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.
10.

11.

12.
13. Add lines 11 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.

14. Long­term capital loss carryover to 2016. 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
C ....................................................................................

14.

Part IV—Capital Loss Limitation

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, earlier, 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.

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
691(c) deduction was claimed, you
must reduce the amount 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.

­10­

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 Schedule G, Form 1041.

Schedule D Tax Worksheet
If you completed the Schedule D Tax
Worksheet instead of Part V of
Schedule D, be sure to enter the
amount from line 44 of the worksheet on
line 1a of Schedule G, Form 1041.

2015 Instructions for Schedule D (Form 1041)

Schedule D Tax Worksheet

Keep for Your Records

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 are more than zero.
Exception: Do not 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 22 is zero or less; instead, see the Instructions for Form 1041, Schedule G, line 1a.
1.
2.
3.
4.
5.
6.
7.
8.
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10.
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16.
17.
18.

Enter the estate's or trust's taxable income from Form 1041, line 22
Enter qualified dividends, if any, from Form 1041, line 2b(2) . . . . . .
Enter the amount from Form 4952, line 4g . . . . . . . . . . . 3.
Enter the amount from Form 4952, line 4e* . . . . . . . . . . 4.
Subtract line 4 from line 3. If zero or less, enter -0- . . . . . . . . . . . . .
Subtract line 5 from line 2. If zero or less, enter -0- . . . . . . . . . . . . .
Enter the smaller of line 18a, col. (2) or line 19, col. (2) from
Sch. D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . .
Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add lines 18b, column (2) and 18c, column (2) from Schedule D . .
Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 12 from line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 13 from line 1. If zero or less, enter -0-. . . . . . . . . . . .
Enter the smaller of line 1 or $2,500 . . . . . . . . . . . . . . . . . . . . . . .
Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . .
Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . . . . . .
Enter the larger of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . .

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19. Subtract line 16 from line 15. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

▶18.
▶19.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21. Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22. Subtract line 21 from line 20. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.
23. Enter the smaller of line 1 or $12,300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.
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% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32. Enter the smaller of line 9 (above) or line 18b, col. (2) (from Schedule D) . . . . . . . . . . . 32.
33. Add lines 10 and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.
34. Enter the amount from line 1 above . . . . . . . . . . . . . . . . . . . . . . . . . . 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% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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% (.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41. Figure the tax on the amount on line 18. Use the 2015 Tax Rate Schedule in the Instructions for Form 1041 . . . . . . . . .
42. Add lines 27, 31, 37, 40 and 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43. Figure the tax on the amount on line 1. Use the 2015 Tax Rate Schedule in the Instructions for Form 1041 . . . . . . . . .
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, line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

▶

20.
21.

▶

27.

▶

31.

▶

*If applicable, enter instead the smaller amount entered on the dotted line next to line 4e of Form 4952.

2015 Instructions for Schedule D (Form 1041)

­11­

37.

40.
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44.