Operation Of The Tax Law Homework

SCHEDULE D (Form 1041)

Department of the Treasury Internal Revenue Service

Capital Gains and Losses ▶ Attach to Form 1041, Form 5227, or Form 990-T.

▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9 and 10. ▶ Information about Schedule D and its separate instructions is at www.irs.gov/form1041.

OMB No. 1545-0092

2016 Name of estate or trust Employer identification number

Note: Form 5227 filers need to complete only Parts I and II.

See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.

Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less

(d) Proceeds

(sales price)

(e) Cost

(or other basis)

(g) Adjustments

to gain or loss from Form(s) 8949, Part I,

line 2, column (g)

(h) Gain or (loss) Subtract column (e) from column (d) and

combine the result with column (g)

1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b .

1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . .

2

Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . .

3

Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . .

4 Short-term capital gain or (loss) from Forms 4684, 6252, 6781, and 8824 . . . . . . . . . 4

5 Net short-term gain or (loss) from partnerships, S corporations, and other estates or trusts . . . 5 6 Short-term capital loss carryover. Enter the amount, if any, from line 9 of the 2015 Capital Loss

Carryover Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ( ) 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on

line 17, column (3) on the back . . . . . . . . . . . . . . . . . . . . . ▶ 7 Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year

See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.

(d) Proceeds

(sales price)

(e) Cost

(or other basis)

(g) Adjustments

to gain or loss from Form(s) 8949, Part II,

line 2, column (g)

(h) Gain or (loss) Subtract column (e) from column (d) and

combine the result with column (g)

8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b .

8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . .

9

Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . .

10

Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . .

11 Long-term capital gain or (loss) from Forms 2439, 4684, 6252, 6781, and 8824 . . . . . . . 11

12 Net long-term gain or (loss) from partnerships, S corporations, and other estates or trusts . . . 12

13 Capital gain distributions . . . . . . . . . . . . . . . . . . . . . . . . . 13

14 Gain from Form 4797, Part I . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Long-term capital loss carryover. Enter the amount, if any, from line 14 of the 2015 Capital Loss

Carryover Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ( ) 16 Net long-term capital gain or (loss). Combine lines 8a through 15 in column (h). Enter here and on

line 18a, column (3) on the back . . . . . . . . . . . . . . . . . . . . . ▶ 16 For Paperwork Reduction Act Notice, see the Instructions for Form 1041. Cat. No. 11376V Schedule D (Form 1041) 2016

Schedule D (Form 1041) 2016 Page 2 Part III Summary of Parts I and II

Caution: Read the instructions before completing this part. (1) Beneficiaries’

(see instr.) (2) Estate’s or trust’s

(3) Total

17 Net short-term gain or (loss) . . . . . . . . . . 17 18 Net long-term gain or (loss):

a Total for year . . . . . . . . . . . . . . . 18a b Unrecaptured section 1250 gain (see line 18 of the wrksht.) . 18b c 28% rate gain . . . . . . . . . . . . . . . 18c

19 Total net gain or (loss). Combine lines 17 and 18a . . ▶ 19

Note: If line 19, column (3), is a net gain, enter the gain on Form 1041, line 4 (or Form 990-T, Part I, line 4a). If lines 18a and 19, column (2), are net gains, go to Part V, and don't complete Part IV. If line 19, column (3), is a net loss, complete Part IV and the Capital Loss Carryover Worksheet, as necessary.

Part IV Capital Loss Limitation 20 Enter here and enter as a (loss) on Form 1041, line 4 (or Form 990-T, Part I, line 4c, if a trust), the smaller of:

a The loss on line 19, column (3) or b $3,000 . . . . . . . . . . . . . . . . . 20 ( )

Note: If the loss on line 19, column (3), is more than $3,000, or if Form 1041, page 1, line 22 (or Form 990-T, line 34), is a loss, complete the Capital Loss Carryover Worksheet in the instructions to figure your capital loss carryover.

Part V Tax Computation Using Maximum Capital Gains Rates Form 1041 filers. Complete this part only if both lines 18a and 19 in column (2) are gains, or an amount is entered in Part I or Part II and there is an entry on Form 1041, line 2b(2), and Form 1041, line 22, is more than zero.

Caution: Skip this part and complete the Schedule D Tax Worksheet in the instructions if:

• Either line 18b, col. (2) or line 18c, col. (2) is more than zero, or

• Both Form 1041, line 2b(1), and Form 4952, line 4g are more than zero. Form 990-T trusts. Complete this part only if both lines 18a and 19 are gains, or qualified dividends are included in income in Part I of Form 990-T, and Form 990-T, line 34, is more than zero. Skip this part and complete the Schedule D Tax Worksheet in the instructions if either line 18b, col. (2) or line 18c, col. (2) is more than zero.

21 Enter taxable income from Form 1041, line 22 (or Form 990-T, line 34) . . 21 22 Enter the smaller of line 18a or 19 in column (2)

but not less than zero . . . . . . . . . 22 23

Enter the estate’s or trust’s qualified dividends from Form 1041, line 2b(2) (or enter the qualified dividends included in income in Part I of Form 990-T) . . . . 23

24 Add lines 22 and 23 . . . . . . . . . . 24 25 If the estate or trust is filing Form 4952, enter the

amount from line 4g; otherwise, enter -0- . . ▶ 25 26 Subtract line 25 from line 24. If zero or less, enter -0- . . . . . . . 26 27 Subtract line 26 from line 21. If zero or less, enter -0- . . . . . . . 27 28 Enter the smaller of the amount on line 21 or $2,550 . . . . . . . 28 29 Enter the smaller of the amount on line 27 or line 28 . . . . . . . 29 30 Subtract line 29 from line 28. If zero or less, enter -0-. This amount is taxed at 0% . . . . . ▶ 30 31 Enter the smaller of line 21 or line 26 . . . . . . . . . . . . 31 32 Subtract line 30 from line 26 . . . . . . . . . . . . . . . 32 33 Enter the smaller of line 21 or $12,400 . . . . . . . . . . . . 33 34 Add lines 27 and 30 . . . . . . . . . . . . . . . . . . 34 35 Subtract line 34 from line 33. If zero or less, enter -0- . . . . . . . 35 36 Enter the smaller of line 32 or line 35 . . . . . . . . . . . . 36 37 Multiply line 36 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . ▶ 37 38 Enter the amount from line 31 . . . . . . . . . . . . . . . 38 39 Add lines 30 and 36 . . . . . . . . . . . . . . . . . . 39 40 Subtract line 39 from line 38. If zero or less, enter -0- . . . . . . . 40 41 Multiply line 40 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . ▶ 41 42 Figure the tax on the amount on line 27. Use the 2016 Tax Rate Schedule for Estates

and Trusts (see the Schedule G instructions in the instructions for Form 1041) . . 42 43 Add lines 37, 41, and 42 . . . . . . . . . . . . . . . . . 43 44 Figure the tax on the amount on line 21. Use the 2016 Tax Rate Schedule for Estates

and Trusts (see the Schedule G instructions in the instructions for Form 1041) . . 44 45 Tax on all taxable income. Enter the smaller of line 43 or line 44 here and on Form 1041, Schedule

G, line 1a (or Form 990-T, line 36) . . . . . . . . . . . . . . . . . . . . . ▶ 45 Schedule D (Form 1041) 2016

Version A, Cycle 5

INTERNAL USE ONLY DRAFT AS OF October 25, 2016

2016 Schedule D (Form 1041)

SE:W:CAR:MP

Capital Gains and Losses

SCHEDULE D (Form 1041)

Department of the Treasury Internal Revenue Service

Capital Gains and Losses

▶ Attach to Form 1041, Form 5227, or Form 990-T. 

▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9 and 10.

▶ Information about Schedule D and its separate instructions is at www.irs.gov/form1041.

OMB No. 1545-0092

O M B Number 1545-0092. For Paperwork Reduction Act Notice, see the Instructions for Form 1041.

2016

2016. Catalog Number 11376V.

Note: Form 5227 filers need to complete only Parts I and II. 

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

Part I

Short-Term Capital Gains and Losses—Assets Held One Year or Less

(d) 

Proceeds 

(sales price) 

(e) 

Cost 

(or other basis) 

(g) 

Adjustments 

 to gain or loss from   Form(s) 8949, Part I,     line 2, column (g)

(h) Gain or (loss)

Subtract column (e)                     from column (d) and combine the result with column (g) 

1a

Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b          

Line 1a. Item 1. (b)

1b

Totals for all transactions reported on Form(s) 8949 with Box A checked          

Line 1b. Item 2. (b).

2

 

Totals for all transactions reported on Form(s) 8949 with Box B checked          

Line 1. Item 2. (b).

3

 

Totals for all transactions reported on Form(s) 8949 with Box C checked          

Line 1. Item 3. (b).

4

Short-term capital gain or (loss) from Forms 4684, 6252, 6781, and 8824          

4

5

Net short-term gain or (loss) from partnerships, S corporations, and other estates or trusts          

5

6

Short-term capital loss carryover. Enter the amount, if any, from line 9 of the 2015 Capital Loss  Carryover Worksheet          

6

( )

7

Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on line 17,  column (3) on the back            ▶

7

Part II

Long-Term Capital Gains and Losses—Assets Held More Than One Year

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

(d) 

Proceeds 

(sales price) 

(e) 

Cost 

(or other basis) 

(g) 

Adjustments 

 to gain or loss from   Form(s) 8949, Part II,    line 2, column (g)

(h) Gain or (loss)

Subtract column (e)                 from column (d) and combine the result with column (g) 

8a

Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b          

Line 8a. Item 1. (b).

8b

Totals for all transactions reported on Form(s) 8949 with Box D checked          

Line 1. Item 2. (b). Totals for all transactions reported on Form(s) 8949 with Box D checked.

9

 

Totals for all transactions reported on Form(s) 8949 with Box E checked          

Line 1. Item 2. (b). Totals for all transactions reported on Form(s) 8949 with Box E checked.

10

 

Totals for all transactions reported on Form(s) 8949 with Box F checked         

Line 1. Item 3. (b). Totals for all transactions reported on Form(s) 8949 with Box F checked.

11

Long-term capital gain or (loss) from Forms 2439, 4684, 6252, 6781, and 8824           

11

12

Net long-term gain or (loss) from partnerships, S corporations, and other estates or trusts          

12

13

Capital gain distributions          

13

14

Gain from Form 4797, Part I          

14

15

Long-term capital loss carryover. Enter the amount, if any, from line 14 of the 2015 Capital Loss  Carryover Worksheet          

15

( )

16

Net long-term capital gain or (loss). Combine lines 8a through 15 in column (h). Enter here and on line 18a,  column (3) on the back           ▶

16

For Paperwork Reduction Act Notice, see the Instructions for Form 1041.

Cat. No. 11376V

Schedule D (Form 1041) 2016

Schedule D (Form 1041) 2016

Page  2 

Part III

Summary of Parts I and II 

Caution: Read the instructions before completing this part.  

(1) Beneficiaries’  

(see instr.)    

(2) Estate’s  

or trust’s    

(3) Total    

Part 3. Summary of Parts 1 and 2. Cation: Read the instructions before completing this part.

(1) Beneficiaries' (see instructions). Dollars.

(1) Beneficiaries' (see instructions). Cents.

(2) Estate's or trust's. Dollars.

(2) Estate's or trust's. Cents.

(3) Total. Dollars.

(3) Total. Cents.

17

Net short-term gain or (loss)          

17

18

Net long-term gain or (loss): 

a

Total for year          

18a

b

Unrecaptured section 1250 gain (see line 18 of the wrksht.)                   

18b

c

28% rate gain          

18c

19

Total net gain or (loss). Combine lines 17 and 18a          ▶

19

Note:  If line 19, column (3), is a net gain, enter the gain on Form 1041, line 4 (or Form 990-T, Part I, line 4a). If lines 18a and 19, column (2), are net gains, go to Part V, and don't complete Part IV. If line 19, column (3), is a net loss, complete Part IV and the Capital Loss Carryover Worksheet, as necessary. 

Part IV

Capital Loss Limitation

20

Enter here and enter as a (loss) on Form 1041, line 4 (or Form 990-T, Part I, line 4c, if a trust), the smaller of: 

a

The loss on line 19, column (3)

or

b

$3,000           .

20

Note:  If the loss on line 19, column (3), is more than $3,000, or if Form 1041, page 1, line 22 (or Form 990-T, line 34), is a loss, complete the Capital  Loss Carryover Worksheet in the instructions to figure your capital loss carryover. 

Part V

Tax Computation Using Maximum Capital Gains Rates

Form 1041 filers. Complete this part only if both lines 18a and 19 in column (2) are gains, or an amount is entered in Part I or Part II and there is an  entry on Form 1041, line 2b(2), and Form 1041, line 22, is more than zero. 

Caution: Skip this part and complete the Schedule D Tax Worksheet in the instructions if: 

•  Either line 18b, col. (2) or line 18c, col. (2) is more than zero, or 

•  Both Form 1041, line 2b(1), and Form 4952, line 4g are more than zero. 

Form 990-T trusts. Complete this part only if both lines 18a and 19 are gains, or qualified dividends are included in income in Part I of Form 990-T,  and Form 990-T, line 34, is more than zero. Skip this part and complete the Schedule D Tax Worksheet in the instructions if either line 18b, col. (2) or line  18c, col. (2) is more than zero. 

21

Enter taxable income from Form 1041, line 22 (or Form 990-T, line 34)          

21

22

Enter the smaller of line 18a or 19 in column (2) but not less than zero          

22

23

Enter the estate’s or trust’s qualified dividends from  Form 1041, line 2b(2) (or enter the qualified dividends  included in income in Part I of Form 990-T)          

23

24

Add lines 22 and 23          

24

25

If the estate or trust is filing Form 4952, enter the  amount from line 4g; otherwise, enter -0-           ▶

25

26

Subtract line 25 from line 24. If zero or less, enter -0-          

26

27

Subtract line 26 from line 21. If zero or less, enter -0-          

27

28

Enter the smaller of the amount on line 21 or $2,550          

28

29

Enter the smaller of the amount on line 27 or line 28          

29

30

Subtract line 29 from line 28. If zero or less, enter -0-. This amount is taxed at 0%           ▶

30

31

Enter the smaller of line 21 or line 26          

31

32

Subtract line 30 from line 26          

32

33

Enter the smaller of line 21 or $12,400          

33

34

Add lines 27 and 30          

34

35

Subtract line 34 from line 33. If zero or less, enter -0-          

35

36

Enter the smaller of line 32 or line 35          

36

37

Multiply line 36 by 15% (0.15)           ▶

37

38

Enter the amount from line 31          

38

39

Add lines 30 and 36          

39

40

Subtract line 39 from line 38. If zero or less, enter -0-          

40

41

Multiply line 40 by 20% (0.20)           ▶

41

42

Figure the tax on the amount on line 27. Use the 2016 Tax Rate Schedule for Estates and Trusts (see the Schedule G instructions in the instructions for Form 1041)           

42

43

Add lines 37, 41, and 42          

43

44

Figure the tax on the amount on line 21. Use the 2016 Tax Rate Schedule for Estates and Trusts (see the Schedule G instructions in the instructions for Form 1041)           

44

45

Tax on all taxable income. Enter the smaller of line 43 or line 44 here and on Form 1041, Schedule G, line 1a (or Form 990-T, line 36)           ▶

45

Schedule D (Form 1041) 2016