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 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.
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8.
9.

10.
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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.

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
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

-7-

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
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.