Illinois Department of Revenue                                                                           

  Schedule F IL-1040 Instructions
What is the purpose of Schedule F?                                        If the security was traded between July 28 and 31, 1969, use the 
The purpose of this schedule is to determine, for certain property        price of the last sale during the period to value the security. If the 
acquired before August 1, 1969, the amount of appreciation that is        security was not traded during the period, use the average of the 
attributable to the period  between the date you acquired the property    bid and ask quotations on July 31, 1969, to value the security.
and August 1, 1969. Illinois does not tax the gain resulting from         If, through a tax-free exchange, you traded a listed security that you 
appreciation that accrued before that date, which is the effective        held on August 1, 1969, for an unlisted security and in the taxable 
date of the Illinois Income Tax Act. The amount of appreciation           year you sold the unlisted security, you must use the listed value on 
that accrued before August 1, 1969, is often called the ‘‘valuation       August 1, 1969, as the fair market value.
limitation amount’’ or the ‘‘pre-August 1, 1969, appreciation amount.’’ 
                                                                          However if, through a tax-free exchange, you traded an unlisted 
Who should file?                                                          security that you held on August 1, 1969, for a listed security and in 
You should file Schedule F only if                                        the taxable year you sold the listed security, you must use a bona 
   you reported a capital gain from property that you acquired before     fide  appraisal, if you have one, to compute the August 1, 1969, fair 
  August 1, 1969, and you have a net capital gain on federal Form         market value. In the absence of an appraisal, you must use the 
  1040 or 1040-SR, Schedule D, Capital Gains and Losses, or               ‘‘number-of-months” method.
  federal Form 8949, Sales and Other Dispositions of Capital Assets;       Other Properties: Fair Market Value Readily Ascertainable by 
  or                                                                      Appraisal – If the gain was not from a security traded or quoted 
   you reported a gain on federal Form 4797, Sales of Business            between July 28 and 31, 1969, enter the fair market value of the 
  Property, from Section 1231, 1245, and 1250  property acquired          property on August 1, 1969, only if the fair market value was 
  before August 1, 1969; or                                               readily ascertainable on that date. Attach a bona fide, independent  
   you reported a gain on federal Form 6252, Installment Sale             appraisal as of August 1, 1969, made by a competent appraiser of 
  Income, from an installment sale on property  acquired before           recognized standing and ability to support the readily ascertainable 
  August 1, 1969.                                                         fair market value. Book value is not generally acceptable as 
Do not file Schedule F for any transaction that resulted in a loss. For   evidence of the August 1, 1969, fair market value.
  exceptions, see ‘‘What if I Had Gains or Losses From Casualty or         Other Properties: Fair Market Value Not Readily Ascertainable – 
Theft?”.                                                                  The Number-of-Months Method – If the fair market value of the 
Should I attach copies of other forms?                                    property was not readily ascertainable on August 1, 1969, enter 
If gain subject to the valuation limitation was reported on any of        a fraction (also called “applicable fraction’’) whose numerator is 
the following forms or schedules, you must attach copies of them          the number of full calendar months you held the property before 
to your Schedule F: federal Form 1040 or 1040-SR, Schedule D;             August 1, 1969, and whose denominator is the total number of 
federal Form 4797; federal Form 6252; federal Form 8949; Illinois         full calendar months you held the property. Do not include in the 
Schedule K-1-P, Partner’s or Shareholder’s Share of Income,               numerator or denominator the month that you acquired or disposed 
Deductions, Credits, and Recapture; and Illinois Schedule K-1-T,          of the property. If the property was  acquired in July, 1969, enter zero 
Beneficiary’s Share of Income and Deductions.                             in Columns E and G.
Note: For installment sales, see instructions on the back of            Column F – If you entered the fair market value of the property in 
                                                                        Column E, enter in Column F the federal income tax basis of the 
Schedule F.
                                                                        property as of August 1, 1969. Federal income tax basis is the amount 
Step 2 – August 1, 1969, Valuation Limitation                           you would have entered as ‘‘cost or other basis’’ on federal Form 
Amounts for Capital (Non-depreciable) Assets                            1040 or 1040-SR, Schedule D (or federal Form 8949, if applicable), or 
Line 1                                                                  federal Form 6252 if you had sold the property on August 1, 1969.
Column A – Enter a description of the property or full name of          If you entered a fraction in Column E, leave Column F blank.
security as shown on your federal Form 1040 or 1040-SR, Schedule        Column G – If you entered the fair market value of the property in 
D (or federal Form 8949, if applicable) or federal Form 6252.           Column E, subtract Column F from Column E and enter the difference. 
Column B – Enter the month and year you acquired the property. For  However, if Column F is equal to or greater than Column E, enter 
securities you acquired through the exercise of rights, warrants, or    zero. If you entered a fraction in Column E, multiply Column D by the 
options, enter the date exercised.                                      fraction and enter the result.
Column C – Enter the month and year you disposed of the property.       Column H – Enter the lesser of Column D or Column G.
Column D – Enter the total gain in the taxable year for each property   Line 2
as shown on federal Form 1040 or 1040-SR, Schedule D (or federal        Enter your share of any pre-August 1, 1969, appreciation amounts for 
Form 8949, if applicable) or federal Form 6252.                         capital gains received from 
Note: If you reported gain on the sale of your home on federal Form       partnerships or S corporations as reported on Schedules K-1-P, 
8949, enter in Column D the amount of that gain minus any “Section        Partner's or Shareholder's Share of Income, Deductions, Credits, 
121 exclusion” you reported for your home on federal Form 8949.           and Recapture, Step 6, Line 51. 
Column E – Enter the fair market value on August 1, 1969, or the          trusts or estates as reported on Schedules K-1-T, Beneficiary's 
‘‘applicable fraction’’ for each property. Your entry for each property   Share of Income and Deductions, Step 6, Line 48. 
will depend upon whether the property was a listed security on          Note: You must include the amounts reported to you on all K-1-P 
August 1, 1969, or, if it was not listed, whether you have an appraisal  schedules received from partnerships and S corporations and all 
of its fair market value as of August 1, 1969. See below.               K-1-T schedules received from trusts and estates. 
How do I determine the fair market value of my property?                Line 3
  Listed Securities: If the gain was from a security listed on a        Enter any gain you realized from a sale of employer securities re-
  national securities exchange or quoted in the over-the-counter        ceived in a distribution from a qualified employee benefit plan. You 
  market between July 28 and 31, 1969, determine the market value  will find the amount on Form IL-4644, Gains from Sales of Employer’s 
  of the property on August 1, 1969, as follows:                        Securities Received from a Qualified Employee Benefit Plan, Line 18.
IL-1040 Schedule F Instructions Front (R-12/23)           Printed by authority of the State of Illinois

Line 4                                                                Step 4 – August 1, 1969, Valuation Limitation 
Add Lines 1 through 3. Enter the amount here and on Step 4, Line 9.   Amount. This part must be completed. 
Step 3 – August 1, 1969, Valuation Limitation                         Line 9
Amounts for Property Used in Trade or Business                        Enter the amount from Step 2, Line 4.
(Sections 1231, 1245, and 1250 Property)                              Line 10
If you reported a gain or loss from an involuntary conversion because Enter 
of casualty or theft of property acquired before August 1, 1969, see    the amount from Step 3, Line 8 if your federal Form 1040 or 1040-
‘‘What if I Had Gains or Losses From Casualty or Theft?”.             SR, Schedule D, Line 11, shows a gain; or
Line 5                                                                  zero if your federal Form 1040 or 1040-SR, Schedule D, Line 11, is 
Column A  – Enter a description of the property as shown on your      blank or shows a loss.
federal Form 4797 or federal Form 6252.                               Line 11
Column B – Enter the month and year you acquired the property. For    Add Lines 9 and 10 and enter the total.
securities you acquired through the exercise of rights, warrants, or  Line 12
options, enter the date exercised.                                    Enter 
Column C – Enter the month and year you disposed of the property.       the net capital gain from your federal Form 1040 or 1040-SR, 
Column D – Enter the total gain in the taxable year reported for      Schedule D, Line 16; or
federal income tax purposes from each property listed in Column A.      zero if your federal Form 1040 or 1040-SR, Schedule D, Line 16, is 
These gains are shown on federal Form 4797, Part I, Line 2, Column    blank or shows a loss.
g, and Part III, Line 24, or on federal Form 6252, Part II, Line 24.  Line 13
Column D1 – Enter for each property the portion of Column D that is   If you sold employer securities received in a distribution from a 
ordinary income under Section 1245 or 1250 of the Internal Revenue    qualified employee benefit plan and realized gain on the sale, include 
Code (IRC). This is reported on federal Form 4797, Part III, Lines    on Line 13 the amount from Form IL-4644, Line 13.
25b and 26g, or on federal Form 6252, Part II, Line 25.               If you are a beneficiary of an estate or trust that received a capital 
Column D2 – Enter for each property the portion of Column D that is   gain distribution from a qualified employee benefit plan or realized 
a gain under Section 1231 of the IRC. Find this amount                a capital gain on the disposition of certain employer securities that 
   by subtracting the sum of federal Form 4797, Lines 25b, and 26g,   were distributed under such a plan, the amount of the gain you 
 from Line 24 of the same form, or                                    received as a beneficiary of such estate or trust may be subject to 
   on federal Form 6252, Line 26.                                     limitation. Include the amount of your share of these amounts.
Column E – See instructions for Step 2, Line 1, Column E.             Note: If you received a lump-sum distribution from a qualified 
Column F – If you entered the fair market value of the property       employee benefit plan and a portion of that distribution was reported 
in Column E, enter in Column F the federal income tax basis as of     as capital gain on your federal Form 1040 or 1040-SR, Schedule D, 
August 1, 1969. Federal income tax basis is the amount you would      you must include the amount of the capital gain on this line. However, 
have entered as ‘‘cost or other basis’’ on federal Form 4797 or       you may claim the subtraction for this capital gain on your Form IL-
federal Form 6252 if you had sold the property on August 1, 1969. If  1040, Line 5, not on Schedule F. See Form IL-1040 instructions.
you entered a fraction in Column E, leave Column F blank.             Lines 14 through 17
Column G – See instructions for Step 2, Line 1, Column G.             Follow the instructions on Schedule F.
Column H – Enter the smaller of Column G or Column D1. If you         What if I Had Gains or Losses From Casualty or Theft?
show no amount in Column D1, enter zero in Column H.
                                                                      If you report a gain or a loss from an involuntary conversion because 
Column I – Enter the smaller of Column D2 or the result of            of casualty or theft of property acquired before August 1, 1969, follow 
subtracting Column H from Column G. If Column D2 is blank, enter      these steps:
zero in Column I. 
                                                                        If you reported on federal Form 4797 a gain from such conversion, 
Line 6                                                                report the gain in accordance with the instructions for Step 3 of this 
Column H – Enter your share of any pre-August 1, 1969,                schedule.
appreciation amounts for Sections 1245 and 1250 gains from 
                                                                        If you reported on federal Form 4797 a net loss from such 
  partnerships or S corporations as reported on all K-1-P schedules,  conversion, complete Step 3 only if you reported Section 1245 or 
 Step 6, Line 48.                                                     1250 gain on the conversion. Complete Columns A through D1 and 
  trusts or estates as reported on all K-1-T schedules, Step 6,       Columns E through H in accordance with the Step 3 instructions for 
 Line 46.                                                             those Columns. Enter zero in Column D2 and Column I.
Column I – Enter your share of any pre-August 1, 1969, appreciation   What about partnerships or S corporations?
amounts for Section 1231 gains from 
                                                                      If you shared in pre-August 1, 1969, appreciation amounts from 
  partnerships or S corporations as reported on all K-1-P schedules,  a partnership or S corporation because of involuntary conversion 
 Step 6, Lines 49 and 50.                                             by casualty or theft of property acquired before August 1, 1969, 
  trusts or estates as reported on all K-1-T schedules, Step 6,       complete Step 3, Line 6, Column I as follows:
 Line 47.                                                               If you reported a net gain on your federal Form 4797, enter your 
Note: You must include the amounts reported to you on all K-1-P       share of Section 1231 appreciation amounts from all K-1-P 
schedules received from partnerships and S corporations and all       schedules, Step 6, Line 49.
K-1-T schedules received from trusts and estates.                       If you reported a net loss on your federal Form 4797, enter 
Line 7                                                                your share of Section 1231 appreciation amounts excluding 
Add Lines 5 and 6, Column H. Enter the amount here and on Step 4,     appreciation amounts attributable to involuntary conversions by 
Line 16.                                                              casualty or theft from all K-1-P schedules, Step 6, Line 50.
Line 8
Add Lines 5 and 6, Column I. Enter the amount here. Also, if your 
federal Form 1040 or 1040-SR, Schedule D, Line 11, shows a gain, 
enter the amount from Line 8 on Step 4, Line 10.                                                 IL-1040 Schedule F Instructions Back (R-12/23)