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Page 7 of 12 Fileid: … 1041-sch-d/2022/a/xml/cycle05/source 13:07 - 7-Dec-2022
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Lines 1a and 8a—Transactions Not Reported on meaning that basis was reported to the IRS. However, the
Form 8949 basis shown in box 1e is incorrect. Don't report this
transaction on line 1a or line 8a. Instead, report the
The estate or trust can report on line 1a (for short-term transaction on Form 8949. See the Instructions for Form
transactions) or line 8a (for long-term transactions) the 8949, columns (f), (g), and (h). Complete all necessary
aggregate totals from any transactions (except sales of pages of Form 8949 before completing line 1b, 2, 3, 8b, 9, or
collectibles) for which: 10 of Schedule D (Form 1041).
• The estate or trust received a Form 1099-B, Proceeds
From Broker and Barter Exchange Transactions (or Lines 1b, 2, 3, 8b, 9, and 10, Column
substitute statement), that shows basis was reported to
(h)—Transactions Reported on Form 8949
the IRS and doesn't show any adjustments in boxes 1f or
1g; Figure gain or loss on each line. First, subtract the cost or
• The Ordinary checkbox in box 2 of Form 1099-B is not other basis in column (e) from the proceeds (sales price) in
checked; column (d). Then, combine the result with any adjustments in
• The QOF checkbox in box 3 of Form 1099-B is not column (g). Enter the gain or loss in column (h). Enter
checked; negative amounts in parentheses.
• The estate or trust isn't electing to defer income due to Example 1—gain. Column (d) is $6,000 and column (e)
an investment in a QOF and isn't terminating deferral is $2,000. Enter $4,000 in column (h).
from an investment in a QOF; and
• The estate or trust doesn't need to make any Example 2—loss. Column (d) is $6,000 and column (e) is
adjustments to the basis or type of gain or loss (short $8,000. Enter ($2,000) in column (h).
term or long term) reported on Form 1099-B (or
substitute statement), or to its gain or loss. Example 3—adjustment. Column (d) is $6,000, column
(e) is $2,000, and column (g) is ($1,000). Enter $3,000
See How To Complete Form 8949, Columns (f) and (g), in ($6,000 − $2,000 − $1,000) in column (h).
the Form 8949 instructions for details about possible
adjustments to your gain or loss. Lines 4 and 11
If the estate or trust chooses to report these transactions Undistributed capital gains. Include on line 11, column
on lines 1a and 8a, don't report them on Form 8949. You (h), the amount from box 1a of Form 2439. This amount
don't need to attach a statement to explain the entries on represents the estate's or trust's share of undistributed
lines 1a and 8a. long-term capital gains from a regulated investment company
(mutual fund) or real estate investment trust.
Figure gain or loss on each line. First, subtract the cost or
other basis in column (e) from the proceeds (sales price) in If there is an amount in box 1b of Form 2439, include that
column (d). Enter the gain or loss in column (h). Enter amount on line 11 of the Unrecaptured Section 1250 Gain
negative amounts in parentheses. Worksheet, later, if you are required to complete line 18b,
column (2), of the schedule. If there is an amount in box 1c of
Example 1—basis reported to the IRS. The estate or Form 2439, see Exclusion of Gain on Qualified Small
trust received a Form 1099-B reporting the sale of stock held Business (QSB) Stock (Section 1202), earlier. If there is an
for 3 years. It shows proceeds (in box 1d) of $6,000 and cost amount in box 1d of Form 2439, include that amount on line 4
or other basis (in box 1e) of $2,000. Box 12 is checked, of the 28% Rate Gain Worksheet, later.
meaning that basis was reported to the IRS. The estate or Enter on Form 1041, Schedule G, Part II, line 16a, the tax
trust doesn't need to make any adjustments to the amounts paid as reported in box 2 of Form 2439. Increase the basis of
reported on Form 1099-B or enter any codes. This was the the stock by the excess of the amount included in income
estate’s or trust's only 2022 transaction. Instead of reporting over the amount of the credit for tax paid. See Pub. 550 for
this transaction on Form 8949, the estate or trust can enter more details.
$6,000 on Schedule D, line 8a, column (d); $2,000 in column
(e); and $4,000 ($6,000 – $2,000) in column (h). Installment sales. If the estate or trust sold property (other
than publicly traded stocks or securities) at a gain during the
If you had a second transaction that was the same except tax year and will receive a payment in a later tax year, you
that the proceeds were $5,000 and the basis was $3,000, generally report the sale on the installment method and file
combine the two transactions. Enter $11,000 ($6,000 + Form 6252, unless you elect not to do so.
$5,000) on Schedule D, line 8a, column (d); $5,000 ($2,000 + Also, use Form 6252 to report any payment received in
$3,000) in column (e); and $6,000 ($11,000 – $5,000) in 2022 from a sale made in an earlier tax year that was
column (h). reported on the installment method.
Example 2—basis not reported to the IRS. The estate To elect out of the installment method, report the full
or trust received a Form 1099-B showing proceeds (in amount of the gain on Form 8949 on a timely filed return
box 1d) of $6,000 and cost or other basis (in box 1e) of (including extensions) for the year of the sale. If the original
$2,000. Box 12 isn't checked, meaning that basis wasn't return was filed timely, the election may be made on an
reported to the IRS. Don't report this transaction on line 1a or amended return filed no later than 6 months after the due
line 8a. Instead, report the transaction on Form 8949. date of the original return (excluding extensions). Write “Filed
Complete all necessary pages of Form 8949 before pursuant to section 301.9100-2” at the top of the amended
completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form return, and file it at the same address as the original Form
1041). 1041.
Example 3—adjustment. The estate or trust received a Exchange of “like-kind” property. Generally, no gain or
Form 1099-B showing proceeds (in box 1d) of $6,000 and loss is recognized when real property held for productive use
cost or other basis (in box 1e) of $2,000. Box 12 is checked, in a trade or business or for investment is exchanged solely
2022 Instructions for Schedule D (Form 1041) -7-
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