Enlarge image
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
evidence of the August 1, 1969, fair market value.
Do not file Schedule F for any transaction that resulted in a loss. For
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
property was not readily ascertainable on August 1, 1969, enter
Should I attach copies of other forms? a fraction (also called “applicable fraction’’) whose numerator is
If gain subject to the valuation limitation was reported on any of the number of full calendar months you held the property before
the following forms or schedules, you must attach copies of them August 1, 1969, and whose denominator is the total number of
to your Schedule F: federal Form 1040 or 1040-SR, Schedule D; full calendar months you held the property. Do not include in the
federal Form 4797; federal Form 6252; federal Form 8949; Illinois numerator or denominator the month that you acquired or disposed
Schedule K-1-P, Partner’s or Shareholder’s Share of Income, of the property. If the property was acquired in July, 1969, enter zero
Deductions, Credits, and Recapture; and Illinois Schedule K-1-T, in Columns E and G.
Beneficiary’s Share of Income and Deductions. Column F – If you entered the fair market value of the property in
For installment sales, see instructions on the back of 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
you would have entered as ‘‘cost or other basis’’ on federal Form 1040
Step 2 – August 1, 1969, Valuation Limitation or 1040-SR, Schedule D (or federal Form 8949, if applicable), or
Amounts for Capital (Non-depreciable) Assets federal Form 6252 if you had sold the property on August 1, 1969.
Line 1 If you entered a fraction in Column E, leave Column F blank.
Column A – Enter a description of the property or full name of Column G – If you entered the fair market value of the property in
security as shown on your federal Form 1040 or 1040-SR, Schedule Column E, subtract Column F from Column E and enter the difference.
D (or federal Form 8949, if applicable) or federal Form 6252. However, if Column F is equal to or greater than Column E, enter
Column B – Enter the month and year you acquired the property. For zero. If you entered a fraction in Column E, multiply Column D by the
securities you acquired through the exercise of rights, warrants, or fraction and enter the result.
options, enter the date exercised. Column H – Enter the lesser of Column D or Column G.
Column C – Enter the month and year you disposed of the property. Line 2
Column D – Enter the total gain in the taxable year for each property Enter your share of any pre-August 1, 1969, appreciation amounts for
as shown on federal Form 1040 or 1040-SR, Schedule D (or federal capital gains received from
Form 8949, if applicable) or federal Form 6252. partnerships or S corporations as reported on Schedules K-1-P,
If you reported gain on the sale of your home on federal Form Partner's or Shareholder's Share of Income, Deductions, Credits,
8949, enter in Column D the amount of that gain minus any “Section and Recapture, Step 6, Line 51.
121 exclusion” you reported for your home on federal Form 8949. trusts or estates as reported on Schedules K-1-T, Beneficiary's
Column E – Enter the fair market value on August 1, 1969, or the Share of Income and Deductions, Step 6, Line 48.
‘‘applicable fraction’’ for each property. Your entry for each property You must include the amounts reported to you on all K-1-P
will depend upon whether the property was a listed security on schedules received from partnerships and S corporations and all
August 1, 1969, or, if it was not listed, whether you have an appraisal K-1-T schedules received from trusts and estates.
of its fair market value as of August 1, 1969. See below. Line 3
How do I determine the fair market value of my property? Enter any gain you realized from a sale of employer securities
Listed Securities: If the gain was from a security listed on a received in a distribution from a qualified employee benefit plan. You
national securities exchange or quoted in the over-the-counter will find the amount on Form IL-4644, Gains from Sales of Employer’s
market between July 28 and 31, 1969, determine the market value Securities Received from a Qualified Employee Benefit Plan, Line 18.
of the property on August 1, 1969, as follows:
IL-1040 Schedule F Instructions Front (R-12/21) Printed by authority of the State of Illinois
