Schedule D - Capital Gains and Losses

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Instructions
for Schedule D (Form 1041)
1. The sale or exchange of:

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(Init. & date)

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a. Property used in a trade or business;
b. Depreciable
andincluding
amortizable
property; reproduction proofs. MUST be removed before printing.
The type and rule above prints
on all proofs
departmental
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
for business or profit.
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
Department of the Treasury
small business investment company (section 1242) stock.
Internal Revenue Service
5. Ordinary loss on the sale, exchange, or worthlessness of
small business (section 1244) stock.

2009

Instructions for Schedule D
(Form 1041)
Capital Gains and Losses
Section references are to the Internal
Revenue Code unless otherwise noted.

Reminder
Schedule D-1, Continuation Sheet for
Schedule D (Form 1041), may be used
to report gains and losses from the sale
or exchange of capital assets if there
are more transactions to report than
spaces on lines 1a or 6a of Schedule D
(Form 1041).

General Instructions
Purpose of Form
Use Schedule D (Form 1041) to report
gains and losses from the sale or
exchange of capital assets by an estate
or trust.
Details of each transaction must be
reported on this schedule. If there are
more transactions than spaces on lines
1a or 6a, you can report the additional
transactions on Schedule D-1. Instead
of reporting the estate’s or trust’s
transactions on Schedule D and D-1,
you can report the transactions on an
attached statement containing all the
same information as Schedule D and
D-1 using a similar format. Use as
many Schedules D-1 or attachments as
necessary. Enter on Schedule D, lines
1b and 6b, as appropriate, the totals
from all Schedules D-1, or attached
statements.

Other Forms You May Have
to File
Use Form 4797, Sales of Business
Property, to report the following.
• The sale or exchange of property
used in a trade or business.
• The sale or exchange of depreciable
and amortizable property.
• The involuntary conversion (other
than from casualty or theft) of property
and capital assets held for business or
profit.
• The disposition of noncapital assets
other than inventory or property held
primarily for sale to customers in the
ordinary course of trade or business.
Use Form 4684, Casualties and
Thefts, to report involuntary
conversions of property due to casualty
or theft.

Use Form 6781, Gains and Losses
From Section 1256 Contracts and
Straddles, to report gains and losses
from section 1256 contracts and
straddles.
Use Form 8824, Like-Kind
Exchanges, 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.

Capital Asset
Each item of property held by the
estate or trust (whether or not
connected with its trade or business) is
a capital asset except the following.
• Inventoriable assets or property held
primarily for sale to customers.
• Depreciable or real property used in
a trade or business, even if it is fully
depreciated.
• Copyrights; literary, musical, or
artistic compositions; letters or
memoranda; or similar property (a)
prepared or produced for the estate or
trust (in the case of letters, memoranda,
or similar property) or (b) that the trust
received from someone who 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.
However, the trust can elect to treat
musical compositions and copyrights in
musical works as capital assets if it sold
or exchanged them in a tax year
beginning after May 17, 2006, and
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.
Cat. No. 11378R

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

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 1 year or less. The
holding period for long-term capital
gains and losses is more than 1 year.
Property acquired from a decedent is
considered as held for more than 1
year.
When you 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 the estate or trust
disposed of it. Use the trade dates for
the date of acquisition and sale of
stocks and bonds traded on an
exchange or over-the-counter market.

Section 643(e)(3) Election
For 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 and, once
made, may be revoked only with IRS
consent.
Note that section 267 does not 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 cannot 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 and a fiduciary or
beneficiary of another trust created by
the same grantor,

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• 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).

Items for Special Treatment
• Bonds and other debt instruments.

See Pub. 550, Investment Income and
Expenses.
• 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 an
interest charge domestic international
sales corporation (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. 564,
Mutual Fund Distribution.
• 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 14c
on page 7.
• 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
had held a financial asset directly
during the term of a derivative contract
must be treated as ordinary income.
See section 1260 for details.
• The sale of qualified empowerment
zone assets acquired after December
21, 2000, that the estate or trust held
for more than 1 year, if you elect to
postpone gain by purchasing other
qualified empowerment zone assets
The sale or other disposition of a partnership
interest may result in ordinary income, collectibles
gain, or unrecaptured section 1250 gain.

during the 60-day period that began on
the date of the sale. See Pub. 550 and
Pub. 954, Tax Incentives for Distressed
Communities.
• If the estate or trust sold or
exchanged a District of Columbia
Enterprise Zone (DC Zone) asset that it
acquired after 1997 but before 2010
and held for more than 5 years, it can
exclude the amount of “qualified capital
gain” from gross income. See Pub. 954.
• If the estate or trust sold or
exchanged a qualified community asset
held for more than 5 years, it can
exclude the amount of any qualified
capital gain from gross income. This
exclusion applies to an interest in, or
property of, certain businesses
operating in a renewal community. See
Pub. 954.
• 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.
• The sale of publicly traded securities,
if the estate or trust elects to postpone
gain by purchasing common stock or a
partnership interest in a specialized
small business investment company
during the 60-day period that began on
the date of the sale. See Pub. 550.

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”),
• 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 does not 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

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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 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.
• It must be stock in a C corporation
(that is, not S corporation stock).
• It must have been originally issued
after August 10, 1993.
• 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.
• 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 at death) or through
a conversion or exchange of QSB stock
the estate or trust held.
• During substantially all the time the
estate or trust held the stock:
1. The corporation was a C
corporation,
2. 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
3. The corporation was not 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 is treated as
having met test 2 above.
Qualified business. A qualified
business is any business other than the
following:

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• 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 section 1202.
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.
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 cannot 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.
For more information about
empowerment zone businesses, see
Pub. 954.
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 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 in column
(f) of line 6a the entire gain realized on
the sale of QSB stock. Complete all
other columns as indicated. Directly
below the line on which you reported
the gain, enter in column (a) “Section
1202 exclusion,” and enter as a (loss)
in column (f) the amount of the
allowable exclusion. On line 2 of the
28% Rate Gain Worksheet, include an
amount equal to the 50% exclusion (2/3
of the exclusion if you claimed a 60%
exclusion). Also, see the Instructions for
Schedule I (Form 1041), line 9, for
information on the amount of the
Make this a Head 4

exclusion to include on Schedule I
(Form 1041).
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. In column (a) of line 6a,
enter the name of the corporation
whose stock was sold. In column (f),
enter the amount of the allowable
exclusion as a (loss). Also, include the
amount of the 50% exclusion as a gain
on line 2 of the 28% Rate Gain
Worksheet (include 2/3 of the exclusion
if you claimed a 60% exclusion).
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. In
column (a) of line 6a, enter the name of
the corporation whose stock was sold.
In column (f), enter the amount of the
allowable exclusion as a (loss). Also,
include the amount of the 50%
exclusion as a gain on line 2 of the 28%
Rate Gain Worksheet (include 2/3 of the
exclusion if you claimed a 60%
exclusion).
Gain from an installment sale of
QSB stock. If all payments are not
received in the year of sale, a sale of
QSB stock that is not traded on an
established securities market generally
is treated as an installment sale and is
reported on Form 6252, Installment
Sale Income. 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.
In column (a) of line 6a, enter the name
of the corporation whose stock was
sold. In column (f), enter the amount of
the allowable exclusion as a loss. Also,
include the amount of the 50%
exclusion as a gain on line 2 of the 28%
Rate Gain Worksheet (include 2/3 of the
exclusion if you claimed a 60%
exclusion).
Alternative minimum tax. You
must enter 7% of the estate’s or trust’s
allowable exclusion for the year on line
9 of Schedule I (Form 1041).
Rollover of gain from QSB stock. If
the estate or trust held QSB stock (as
defined above) 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

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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 entire gain realized
on the sale on line 1a or 6a. Directly
below the line on which you reported
the gain, enter in column (a) “Section
1045 Rollover” and enter as a (loss) in
column (f) the amount of the postponed
gain.
Rollover of gain from empowerment
zone assets. If you sold a qualified
empowerment zone asset that the
estate or trust held for more than 1
year, you may be able to elect to
postpone part or all of the gain that
would otherwise be included on
Schedule D. If you make the election,
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 Pub. 954 for the definition of
empowerment zone and enterprise
zone business and section 1397B for
details regarding the rules that apply to
this election.
How to report. Report the entire
gain realized from the sale as you
otherwise would without regard to the
election. On Schedule D, line 6a, enter
‘‘Section 1397B Rollover’’ in column (a)
and enter as a loss in column (f) the
amount of gain included on Schedule D
that you are electing to postpone. If you
are reporting the sale directly on
Schedule D, line 6a, use the line
directly below the line on which you are
reporting the sale.
Exclusion of gain from DC Zone
assets or Qualified Community
assets. If the estate or trust sold or
exchanged a District of Columbia
Enterprise Zone asset or a Qualified
Community Zone 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 on
Schedule D. 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 Pub. 954 and 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 Pub. 954
and section 1400F for more details on
this exclusion.
How to report. Report the entire
gain realized from the sale or exchange

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as you otherwise would without regard
to either exclusion. On line 6a, enter
“DC Zone asset” or “Qualified
Community asset” (whichever is
appropriate) in column (a), and enter as
a loss in column (f) the amount of the
allowable exclusion. If you are reporting
the sale directly on line 6a, use the line
directly below the line on which you are
reporting the sale.

Specific Instructions
Lines 1a and 6a
Short-term and long-term capital
gains and losses. Enter all sales of
stocks, bonds, etc.
Redemption of stock to pay death
taxes. If stock is redeemed under the
provisions of section 303, list and
identify it on line 6a and give the name
of the decedent and the IRS office
where the estate tax or generationskipping transfer tax return was filed.
If you are reporting capital gain from
a lump-sum distribution, see the
instructions for Form 4972, Tax on
Lump-Sum Distributions, for information
about the federal estate tax.

Column (d)—Sales Price
Enter either the gross sales price or the
net sales price from the sale. On sales
of stocks and bonds, report the gross
amount as reported to the estate or
trust on Form 1099-B, Proceeds From
Broker and Barter Exchange
Transactions, or similar statement.
However, if the estate or trust was
advised that gross proceeds less
commissions and option premiums
were reported to the IRS, enter that net
amount in column (d).

Column (e)—Cost or Other
Basis
Basis of trust property. Generally,
the basis of property acquired by gift is
the same as the basis in the hands of
the donor. 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 for determining any
loss on 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 for a discussion of the
valuation of qualified real property
under section 2032A.
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.
Adjustments to basis. Before figuring
any gain or loss on the sale, exchange,
or other disposition of property owned
by the estate or trust, adjustments to
the property’s basis may be required.
Some items that may increase the
basis include:
1. Broker’s fees and commissions,
2. Reinvested dividends that were
previously reported as income,
3. Reinvested capital gains that
were previously reported as income,
4. Costs that were capitalized, and
5. Original issue discount that has
been previously included in income.
Some items that may decrease the
basis include:
1. Nontaxable distributions that
consist of return of capital,
2. Deductions previously allowed or
allowable for depreciation, and
3. Casualty or theft loss deductions.
See Pub. 551 for additional
information.
See section 852(f) for treatment of
load charges incurred in acquiring stock
in a regulated investment company.
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 elected it on
a Form 5970-A, Election of Carryover
Basis, that was filed on time.

Column (f)—Gain or (Loss)
Make a separate entry in this column
for each transaction reported on lines
1a and 6a and any other lines that
apply to the estate or trust. For lines 1a
and 6a, subtract the amount in column
(e) from the amount in column (d).
Enter negative amounts in parentheses.

Lines 2 and 7
Undistributed capital gains. Include
on line 7, column (f), the amount from
box 1a of Form 2439. This represents
the estate’s or trust’s share of the
undistributed long-term capital gains of
the regulated investment company

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(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 14b, 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)
on page 2. 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 shown in box 2 of Form 2439.
Add to the basis of your stock the
excess of the amount included in
income over the amount of the credit
for tax paid. See Pub. 550 for more
details.

!

CAUTION

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

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 2009 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 a timely filed return (including
extensions). If the original return 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.
Exchange of “like-kind” 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 on
page 1), and before 2 years after the
date 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
the original exchange will not qualify for
nonrecognition. See section 1031(f) for
exceptions.
Complete and attach Form 8824,
Like-Kind Exchanges, to Form 1041 for
each exchange.

Page 5 of 8

Instructions for Schedule D (Form 1041)

14:04 - 22-OCT-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 9—Capital Gain
Distributions
Enter as a long-term capital gain on line
9, column (f), the total capital gain
distributions paid during the year,
regardless of how long the estate or
trust held its investment. This amount is
shown 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 below if you are required to
complete the worksheet. If there is an
amount in box 2c, see Exclusion of
Gain on Qualified Small Business
(QSB) Stock (Section 1202) on page 2.
If there is an amount in box 2d of Form
1099-DIV, include the amount on line 4
of the 28% Rate Gain Worksheet.
The instructions above assume
the estate or trust is a cash
CAUTION basis calendar year taxpayer.

!

Line 13, Column
(1)—Beneficiaries’ Net
Short-Term Capital Gain or
Loss

Line 13, Column
(2)—Estate’s or Trust’s 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.

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).

Unrecaptured Section 1250 Gain Worksheet—Line 14b

Line 13, 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 5.

Line 14a—Net Long-Term
Capital Gain or Loss
Allocate the net long-term capital gain
or loss on line 14a in the same manner
as the net short-term capital gain or
loss on line 13. However, do not take
the section 1202 exclusion on gain from
the sale or exchange of qualified small
business stock into account when

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on line 1 . . . . 2.
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
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. Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
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- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 did not 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 on page 6.
Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Enter the (loss), if any, from Schedule D, line 5. If Schedule D, line 5, 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
11, 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- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 14b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

-5-

Page 6 of 8

Instructions for Schedule D (Form 1041)

14:04 - 22-OCT-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

figuring net long-term capital gain or
loss allocable to the beneficiaries.

Line 14b—Unrecaptured
Section 1250 Gain
Complete the worksheet on page 5 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 for which it 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
shows “unrecaptured section 1250
gain” reportable 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
described on line 1, complete lines 1
through 3 for each property on a
separate worksheet. Enter the total of
the line 3 amounts for all properties on
line 3 and 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 2009
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 2009
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
2009 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.
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

28% Rate Gain Worksheet—Line 14c

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 to
include on line 12 is unrecaptured
section 1250 gain from the sale of a
vacation home previously used as a
rental property but converted to
personal use prior to 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 did not 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
smaller of line 22 or line 24 of the 2009
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 2009
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

Keep for Your Records

1. Enter the total of all collectibles gain or (loss) from items reported on line 6a, column (f), of Schedules D
and D-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter as a positive number the amount of any section 1202 exclusion reported on line 6a, column (f), of
Schedules D and D-1 for which you excluded 50% of the gain, plus 2/3 of any section 1202 exclusion
reported on line 6a, column (f), of Schedules D and D-1 for which you excluded 60% 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter the total of any collectibles gain reported to the estate or trust on:
• Form 1099-DIV, box 2d;
.............
• 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 11, and from box 11,
code C of Schedule K-1 (Form 1041) from another estate or trust . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. If Schedule D, line 5 is a (loss), enter that (loss) here. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . .
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 14c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

}

-6-

1.

2.
3.
4.

5. (

)

6. (

)

7.

Page 7 of 8

Instructions for Schedule D (Form 1041)

14:04 - 22-OCT-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Capital Loss Carryover Worksheet

Keep for Your Records

Use this worksheet to figure the estate’s or trust’s capital loss carryovers from 2009 to 2010 if Schedule D, line 16
is a loss and (a) the loss on Schedule D, line 15, col. (3) is more than $3,000 or (b) Form 1041, page 1, line 22 is a
loss.
1.
2.
3.
4.
5.
6.
7.
8.
9.

10.
11.
12.
13.
14.

Enter taxable income or (loss) from Form 1041, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
Enter the loss from line 16 of Schedule D as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
Enter amount from Form 1041, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
Adjusted taxable income. Combine lines 1, 2, and 3. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . .
4.
Enter the smaller of line 2 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
Note: If line 5 of Schedule D is a loss, go to line 6; otherwise, enter -0- on line 6 and go to line 10.
Enter loss from Schedule D, line 5 as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
Enter gain, if any, from Schedule D, line 12. If that line is blank or shows a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
Add lines 5 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
Short-term capital loss carryover to 2010. 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 . . .
9.
Note: If line 12 of Schedule D is a loss, go to line 10; otherwise, skip lines 10 through 14.
Enter loss from Schedule D, line 12, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Enter gain, if any, from Schedule D, line 5. If that line is blank or shows a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
Subtract line 6 from line 5. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . 12.
Add lines 11 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
Long-term capital loss carryover to 2010. 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.

installment payments received during
the tax year as the smaller of (a) the
amount from line 26 or line 37 of the
2009 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 was not 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 is the
smaller of line 22 or line 24 of Form
4797 for that property. Next, 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 14c—28% Rate Gain
Complete the 28% Rate Gain
Worksheet on page 6 if lines 14a and
15 for column (3) are both greater than

zero and at least one of the following
apply:
• The estate or trust reports in Part II,
column (f), a section 1202 exclusion
from the eligible gain on QSB stock
(see page 2), or
• The estate or trust reports in Part II,
column (f), 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 and attributable to
unrealized appreciation of collectibles.
For details, see Regulations section
1.1(h)-1. Also attach the statement
required under Regulations section
1.1(h)-1(e).

Part IV—Capital Loss
Limitation
If the sum of all the capital losses is
more than the sum of all the capital
gains, then these capital losses are
allowed as a deduction 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

-7-

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.

Part V—Tax Computation
Using Maximum Capital
Gains Rates
Line 22
If the estate or trust received qualified
dividends or capital gains that were
derived from 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 18,
(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 34
If the tax using the maximum capital
gains rates is less than the regular tax,
enter the amount from line 34 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 36 of the worksheet
on line 1a of Schedule G, Form 1041.

Page 8 of 8

Instructions for Schedule D (Form 1041)

14:04 - 22-OCT-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Schedule D Tax Worksheet

Keep for Your Records

Complete this worksheet only if:
• On Schedule D, line 14b, column (2), or line 14c, 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 14a, column (2), or line 15, 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.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.

24.
25.
26.
27.
28.
29.

30.
31.
32.
33.
34.
35.
36.

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) . . . . . . . . . . 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- . . . . . . . . . . . . . . . . 5.
Subtract line 5 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
Enter the smaller of line 14a, col. (2) or line 15, col. (2) from Sch. D . . . . . 7.
Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Add lines 14b, column (2) and 14c, column (2) from Schedule D . . . . . . . . . . . . . . . . . . 11.
Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
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 $2,300 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . 17.
Enter the larger of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 18.
If lines 15 and 16 are the same, skip line 19 and go to line 20. Otherwise, go to line 19.
Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 19.
If lines 1 and 15 are the same, skip lines 20 through 32 and go to line 33. Otherwise, go to line 20.
Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 21 from line 20. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 22.
Multiply line 22 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Schedule D, line 14b, column (2) is zero or blank, skip lines 24 through 29 and go to line 30. Otherwise, go to
line 24.
Enter the smaller of line 9 (above) or line 14b, col. (2) (from Schedule D) . . . . . . . . . . . . 24.
Add lines 10 and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.
Enter the amount from line 1 above . . . . . . . . . . . . . . . . . . . . . . . . . . 26.
Subtract line 26 from line 25. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 27.
Subtract line 27 from line 24. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 28.
Multiply line 28 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Schedule D, line 14c, column (2) is zero or blank, skip lines 30 through 32 and go to line 33. Otherwise, go to
line 30.
Add lines 18, 19, 22, and 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.
Subtract line 30 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.
Multiply line 31 by 28% (.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure the tax on the amount on line 18. Use the 2009 Tax Rate Schedule in the Instructions for Form 1041 . . . . . . . .
Add lines 23, 29, 32, and 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Figure the tax on the amount on line 1. Use the 2009 Tax Rate Schedule in the Instructions for Form 1041 . . . . . . . . .
Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 34 or line 35
here and on Form 1041, Schedule G, line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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1.

. 13.
. 14.

. 20.
. 21.
. 23.

. 29.

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32
33.
34.
35.

. 36.