Unrecaptured Section 1250 Gain Worksheet - (Sch. D Inst)

Unrecaptured Section 1250 Gain Worksheet—Line 18b

Keep for Your Records

If the estate or trust isn't reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to
line 10.
1. If the estate or trust has a section 1250 property in Part III of Form 4797 for which you made an entry in
Part I of Form 4797 (but not on Form 6252), enter the smaller of line 22 or line 24 of Form 4797 for that
property. If the estate or trust didn't have any such property, go to line 4. If it had more than one such
property, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 didn't 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 D, from another
)
estate or trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. (
17. Combine lines 14 through 16. If the result is a (loss), enter it as a positive amount. If the result is zero or
a gain, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

column (3) should be the same as the
amount on line 7.

Line 18a—Net Long-Term
Capital Gain or Loss

Allocate the net long-term capital gain or
loss on line 18a in the same manner as
the net short-term capital gain or loss on
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, above, 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.

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

9.
10.
11.
12.
13.

17.
18.

Instructions for the
Unrecaptured Section 1250
Gain Worksheet
Lines 1 through 3. If the estate or trust
had more than one property, complete
lines 1 through 3 for each property on a
separate worksheet. Next, enter the
total amount for all properties on line 3;
then, go to line 4.
Line 4. To figure the amount to enter
on line 4, follow the steps below for
each installment sale of trade or
business property held more than 1
year.
Step 1. Figure the smaller of (a) the
depreciation allowed or allowable, or (b)
the total gain for the sale. This is the
smaller of line 22 or line 24 of the 2021
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

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2021 Instructions for Schedule D (Form 1041)