Illinois Department of Revenue

             Schedule F (IL-1065) Instructions

General Information
What is the purpose of Schedule F?
The purpose of this schedule is to determine, for certain property acquired before August 1, 1969, the amount of appreciation 
that is attributable to the period between the date you acquired the property and August 1, 1969. Illinois does not tax the gain 
resulting from appreciation that accrued before that date, which is the effective date of the Illinois Income Tax Act. The amount 
of appreciation that accrued before August 1, 1969, is often called the “valuation limitation amount” or the “pre-August 1, 1969, 
appreciation amount.”
Who should file Schedule F?
You should file Schedule F if you reported a 
•     capital gain from property that you acquired before August 1, 1969, and you have a net capital gain on federal 
      Schedule D (Form 1065), Capital Gains and Losses, or federal Form 8949, Sales and Other Dispositions of Capital 
      Assets; or
•     gain on federal Form 4797, Sales of Business Property, from Section 1231, 1245, and 1250 property acquired before 
      August 1, 1969; or
•     gain on federal Form 6252, Installment Sale Income, from an installment sale on property acquired before 
      August 1, 1969.
Should I attach copies of other forms?
You must attach copies of any of the following forms or schedules you filed to your Schedule F:
•     federal Schedule D (Form 1065), 
•     federal Form 4797, 
•     federal Form 6252, or 
•     federal Form 8949. 
Note: For installment sales, see the instructions on the back of Schedule F.

Should I round?
You must round the dollar amounts on Schedule F (IL-1065) to whole-dollar amounts. To do this, you should drop any amount 
less than 50 cents and increase any amount of 50 cents or more to the next higher dollar.

What if I need additional assistance or forms?
•     For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the 
      QR code provided.
•     Write us at: 
      ILLINOIS DEPARTMENT OF REVENUE
      PO BOX 19001
      SPRINGFIELD IL  62794-9001
•     Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
•     Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield office) and 
      8:30 a.m. to 5:00 p.m. (all other offices), Monday through Friday.

Specific Instructions
Line 1
Column A - Enter the description of the property or full name of security as shown on your 
•     federal Schedule D (Form 1065) or federal Form 8949, if applicable, 
•     federal Form 4797, or 
•     federal Form 6252.
Column B - Enter the month and year you acquired the property. For securities you acquired through the exercise of rights, 
warrants, or options, enter the date exercised.
Column C - Enter the month and year you disposed of the property.

Schedule F (IL-1065) instructions (R-12/22) Printed by the authority of the state of Illinois - electronic only - one copy. Page 1 of 3

Column D - Enter the total gain reported this year from each disposition of property, including involuntary conversions by 
casualty or theft, as shown on
•     federal Schedule D (Form 1065) or federal Form 8949, if applicable, 
•     federal Form 4797, or 
•     federal Form 6252.        
Note: Do not enter any transaction for which you incurred a loss. 
Column E - Enter for each property the portion of Column D that is ordinary income under Internal Revenue Code (IRC) 
Section 1245 or 1250. This is reported on federal Form 4797, or federal Form 6252.
Column F -  For each property figure the portion of Column D that is a gain under IRC Section 1231 from either federal Form 
6252 or federal Form 4797. 
•     federal Form 6252 - Enter the amount from Line 26. 
•     federal Form 4797 - Use the following formula and enter the result: Line 24 - (Line 25b + Line 26g)
Note: Where there is a disposition of IRC Sections 1251, 1252, 1254, or 1255 property, the sum of the amounts in Columns E 
and F may be less than the amount in Column D.
Column G - Enter the gain shown on Schedule D (Form 1065) or U.S. Form 8949, if applicable.
Column H - Enter the fair market value on August 1, 1969, or the “applicable fraction” for each property. Your entry for each 
property will depend upon whether the property was a listed security on August 1, 1969, or, if it was not listed, whether you 
have an appraisal of its fair market value as of August 1, 1969. See below.
•     Listed Securities: If the gain was from a security listed on a national securities exchange or quoted in the over-the- 
      counter market between July 28 and 31, 1969, enter the market value of the property on August 1, 1969.
      If the security was traded between July 28 and 31, 1969, use the price of the last sale during the period to value    
      the security. If the security was not traded during the period, use the average of the bid and ask quotations on      
      July 31, 1969, to value the security.
•     Other Properties: Fair Market Value Readily Ascertainable by Appraisal - If the gain was not from a security    
      traded or quoted between July 28 and 31, 1969, enter the fair market value of the property on August 1, 1969, only  
      if the fair market value was readily ascertainable on that date. Attach a bona fide, independent written appraisal as of  
      August 1, 1969, made by a competent appraiser of recognized standing and ability, to support the readily ascertainable 
      fair market value. Book value is not generally acceptable as evidence of the August 1, 1969, fair market value.
•     Other Properties: Fair Market Value Not Readily Ascertainable - (The Number-of-Months Method) If the fair 
      market value of the property was not readily ascertainable on August 1, 1969, enter a fraction (also called “applicable 
      fraction”) whose numerator is the number of full calendar months you held the property before August 1, 1969, and 
      whose denominator is the total number of full calendar months you held the property. Do not include in the numerator 
      or denominator the month that you acquired or disposed of the property. If the property was acquired in July 1969, 
      enter zero in Columns H and J.
Column I - If you entered the fair market value of the property in Column H, enter in Column I the federal income tax basis 
of the property (for determining gain) as of August 1, 1969. Federal income tax basis is the amount you would have entered 
as “cost or other basis” on Schedule D (Form 1065), federal Form 8949, or federal Form 6252 if you had sold the property on 
August 1, 1969.
Note: If you entered a fraction in Column H, leave Column I blank.
Column J - If you entered the fair market value or an appraisal value of the property in Column H, subtract Column I from 
Column H and enter the difference. However, if Column I is equal to or greater than Column H, enter zero. If you entered a 
fraction in Column H, multiply Column D by the fraction and enter the result.
Column K - Enter the smaller of Column E or Column J. If you show no amount in Column E, enter zero in Column K.
Column L - Enter the smaller of Column F or the result of subtracting Column K from Column J. If Column F is blank, enter 
zero in Column L.
Column M - Enter the smaller of Column G or Column J. If Column G is blank, enter zero in Column M. 

Line 2
Refer to all Schedules K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, you received 
from partnerships or S corporations, and all Schedules K-1-T, Beneficiary’s Share of Income and Deductions, you received 
from trusts or estates for the amounts to enter on Line 2, Columns K, L, and M.
Column K - Enter your share of any pre-August 1, 1969, appreciation amounts for IRC Sections 1245 and 1250 gains, or 
capital assets, from Schedule K-1-P, Step 6, Line 48, Column A, and Schedule K-1-T, Step 6, Line 46, Column A.
Column L -Enter your share of any pre-August 1, 1969, appreciation amounts (including involuntary conversions by casualty 
or theft) for IRC Section 1231 gain from Schedule K-1-P, Step 6, Line 49, Column A, and Schedule K-1-T, Step 6, Line 47, 
Column A.
Column M - Enter your share of capital gain appreciation amounts from Schedule K-1-P, Step 6, Line 51, Column A, and 
Schedule K-1-T, Step 6, Line 48, Column A.
Schedule F (IL-1065) instructions (R-12/22)                                                                             Page 2 of 3

Line 3
Column K - Enter the total of Column K including Line 2. This is the total pre-August 1, 1969, appreciation amount for Sections 
1245 and 1250 gain. Enter each partner’s share on each Schedule K-1-P, Step 6, Line 48, Column A. 

Line 4 
Column L - Enter the total of Column L including Line 2. This is the total pre-August 1, 1969, appreciation amount for Section 
1231 gain (including amounts attributable to involuntary conversions by casualty or theft). Enter each partner’s share on each 
Schedule K-1-P, Step 6, Line 49, Column A. 

Line 5 
Column L - Enter the amount of pre-August 1, 1969, appreciation amounts from involuntary conversions by casualty or theft that 
were included in the amounts shown on Lines 1 and 2. 

Line 6
Column L - Subtract Line 5 from Line 4. This is the total pre-August 1, 1969, appreciation amount for Section 1231 gain, excluding 
amounts attributable to involuntary conversion by casualty or theft. Enter each partner’s share on each Schedule K-1-P, Step 6, Line 
50, Column A. 

Line 7 
Column M - Enter the total of Column M including Line 2. This is the total pre-August 1, 1969, appreciation amount for capital gain. 
Enter each partner’s share on each Schedule K-1-P, Step 6, Line 51, Column A.

Lines 8 through 10 and 12 through 14.
Follow the instructions on Schedule F. 

Line 11
Enter the amounts from 
  federal Form 1065, Line 6.                                                 a  ________________
  federal Form 1065, Schedule D, Line 15.                                    b  ________________
  federal Form 4797, Part I, Line 7.                                         c  ________________
Add Lines a, b, and c, and enter the result here and on Schedule F, Line 11. d  ________________

Schedule F (IL-1065) instructions (R-12/22)                                                       Page 3 of 3