Form 1041 D Instructions
- 1). Download a copy of Form 1041 Schedule D from the IRS website. The IRS provides a downloadable PDF version of Form 1041 Schedule D that can be printed, filled in and filed with the IRS. At the top of the form, fill in the name of the estate or trust and provide its employer identification number.
- 2). Disclose any short-term capital gains or losses in Part I. A short-term capital asset is a capital asset held for less than one year. On line 1a, provide the name of each capital asset held by the estate or trust. For each asset, indicate the date each capital asset was acquired and sold, the cost of the asset, the sale price and the gain or loss realized. If the trust or estate has more than five capital assets, download and fill out Schedule D-1. Indicate any short-term capital gains or losses reported on Forms 4684, 6252, 6781 and 8824, from other business associations and carryover from the previous year. On line five, provide the total short term capital gains or losses realized by the trust or estate in the calendar year.
- 3). Disclose any long-term capital gains or losses in Part II. Long-term capital assets are capital assets held for more than one year. On line 6a, provide a description for any capital assets held, the date acquired, date sold, sale price, cost and capital gain or loss realized. If the trust or estate has more than five capital assets, download and fill out Schedule D-1. Indicate any long-term capital gains or losses reported on Forms 4684, 4797, 6252, 6781 and 8824, from other business associations and carryover from the previous year. On line 12, calculate the net long-term capital gains or losses realized by the trust or estate in the calendar year.
- 4). Summarize capital gains and losses realized in Part III. Indicate the net short and long term capital gains or losses allocable to beneficiaries and the estate or trust. Total these amounts on line 15 and column three.
- 5). Compute the capital loss limitation in Part IV. On line 16a, provide the lesser of any capital losses on line 15, column three or $3,000.
- 6). Compute the tax owed by the trust or estate in Part V. On lines 17 through 34, perform the requested calculations. On line 34, indicate the amount of tax owed by the trust or estate on capital gains.
- 7). File Form 1041 Schedule D with the IRS. The address for filing Form 1041 Schedule D varies with the location of the trust or estate.