1041

Capital Gains and Losses

Agency
IRS
Revision
2025
Fillable fields
87
Pages
2
Official source
IRS form page
Checked
October 21, 2026
Fill 1041 online
Page 1 of form 1041

2025 Schedule D (Form 1041): Capital Gains and Losses

Schedule D (Form 1041) reports the capital gains and losses of an estate or trust. The About Form 1041 page says to use it to report gains and losses from the sale or exchange of capital assets by an estate or trust. The form says to attach it to Form 1041, Form 5227, or Form 990-T, and to use Form 8949 to list transactions for lines 1b, 2, 3, 8b, 9, and 10.

The instructions say any reference to "you" means the fiduciary of the estate or trust. The schedule totals short-term and long-term gains and losses, splits the net results between the beneficiaries and the estate or trust, limits a net capital loss, and figures the tax using the maximum capital gains rates. The form says Form 5227 filers need to complete only Parts I and II.

You can fill out Schedule D (Form 1041) free in your browser on this page and download it without an account.

What's on Schedule D (Form 1041)

Part I: Short-term

Lines 1a to 7 cover assets generally held 1 year or less, with columns for proceeds, cost, adjustments and gain or loss, plus the short-term capital loss carryover.

Part II: Long-term

Lines 8a to 16 cover assets generally held more than 1 year, plus gains from Forms 2439, 4684, 6252, 6781 and 8824, capital gain distributions and gain from Form 4797, Part I.

Part III: Summary

Lines 17 to 19 split net short-term and long-term results into the beneficiaries' share, the estate's or trust's share and the total, including unrecaptured section 1250 gain and 28% rate gain.

Part IV: Capital Loss Limitation

Line 20 is the smaller of the loss on line 19, column (3), or $3,000, entered as a loss on Form 1041, line 4.

Part V: Tax computation

Lines 21 to 45 figure the tax using the maximum capital gains rates of 0%, 15% and 20%, with the result going to Form 1041, Schedule G, Part I, line 1a.

How to fill out Schedule D (Form 1041)

  1. 1

    Answer the QOF question

    Check Yes or No for whether the estate or trust disposed of any investment in a qualified opportunity fund. If Yes, attach Form 8949.

  2. 2

    Complete Form 8949 first

    The instructions say to complete Form 8949 before lines 1b, 2, 3, 8b, 9, or 10. Sales with basis reported to the IRS and no adjustments can go on line 1a or 8a as totals instead.

  3. 3

    Figure column (h)

    Subtract the cost or other basis in column (e) from the proceeds in column (d), combine the result with any adjustments in column (g), and enter negative amounts in parentheses.

  4. 4

    Lines 17 to 19

    Split net gains and losses between the beneficiaries in column (1) and the estate or trust in column (2). The instructions say a net loss is allocated to the estate or trust, not the beneficiaries.

  5. 5

    Line 20 and the carryover

    If line 19, column (3), is a net loss, enter the smaller of that loss or $3,000 on line 20. The Capital Loss Carryover Worksheet in the instructions figures any carryover to 2026.

  6. 6

    Part V or the worksheet

    Form 1041 filers complete Part V when the form's conditions are met, such as gains on both lines 18a and 19 in column (2). The form says to use the Schedule D Tax Worksheet instead when line 18b or 18c in column (2) is more than zero.

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How it is filed and what to keep in mind

Attach to the return

The form says to attach it to Form 1041, Form 5227, or Form 990-T. It goes in with that return, not on its own.

E-filing

The instructions say that if Form 1041 is e-filed, any Schedule D (Form 1041) and Form 8949 that are part of the return must also be e-filed.

Rounding

Cents can be rounded to whole dollars. The instructions say that if you round, round all amounts: drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar.

Capital loss carryover

The instructions say a capital loss carryover may be carried forward indefinitely and keeps its short-term or long-term character. On a final return, carryovers also go on Schedule K-1 (Form 1041), box 11, codes C and D.

QOF disposals

The instructions say a disposal of a qualified opportunity fund investment also requires Part III of Form 8997.

Related forms

Who files Schedule D (Form 1041)?

  • Fiduciaries of estates and trusts

    The fiduciary attaches it to Form 1041 to report the overall capital gains and losses of the estate or trust.

  • Split-interest trusts filing Form 5227

    The form says Form 5227 filers need to complete only Parts I and II.

  • Trusts filing Form 990-T

    The schedule can be attached to Form 990-T. A net gain on line 19 or a loss on line 20 then goes to Schedule A (Form 990-T), Part I, line 4a or 4c.

  • Sales reported on Form 1099-B or 1099-DA

    Totals of sales on Form 1099-B or Form 1099-DA with basis reported to the IRS and no adjustments can go directly on line 1a or 8a instead of Form 8949.

  • Estates and trusts with a QOF investment

    The form asks whether the estate or trust disposed of any investment in a qualified opportunity fund during the tax year. If "Yes," attach Form 8949.

The fiduciary of an estate or trust completes it and attaches it to the return the estate or trust files with the IRS.

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Questions about Form 1041

Which returns use Schedule D (Form 1041)?

The form says to attach it to Form 1041, Form 5227, or Form 990-T.

Is Form 8949 always needed?

No. Totals for Form 1099-B or 1099-DA sales with basis reported to the IRS and no adjustments can go on line 1a or 8a without Form 8949. Other transactions are listed on Form 8949 first.

How much capital loss can be deducted?

Line 20 allows the smaller of the net loss on line 19, column (3), or $3,000. The Capital Loss Carryover Worksheet in the instructions figures what carries over.

What are the 2025 capital gain rate amounts?

The instructions say the 0% rate applies up to $3,250, the 15% rate to amounts over $3,250 and up to $15,900, and the 20% rate to income above $15,900.

What do Form 5227 filers complete?

The form says Form 5227 filers need to complete only Parts I and II.

What is new for 2025?

The instructions say codes G, H, I, J, K, and L were added to lines 1b, 2, 3, 8b, 9, and 10 to represent the reporting of digital asset transactions.