Capital Loss Carryover Worksheet (Sch. D Inst)

Capital Loss Carryover Worksheet

Keep for Your Records

Use this worksheet to figure the estate's or trust's capital loss carryovers from 2021 to 2022 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 23 is a
loss.
1. Enter taxable income or (loss) from Form 1041, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

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

2.

3. Enter amount from Form 1041, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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. Short-term capital loss carryover to 2022. 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 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. Long-term capital loss carryover to 2022. 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.

Line 19
Trusts filing Schedule D (Form
1041) with Form 990-T that
CAUTION 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) completed for
the specific trade or business.

!

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 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 20
Trusts filing Schedule D (Form
1041) with Form 990-T that
CAUTION 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 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

2021 Instructions for Schedule D (Form 1041)

-11-

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.

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, Part I, Form 1041.

Schedule D Tax Worksheet
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 Schedule G, Part I, Form
1041.