Instructions for Schedule D (Form 1041) - Introductory Material


Future Developments

For the latest information about developments related to Schedule D and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form1041.

What's New

Form 8949.   The use of Form 8949 by estates and trusts is new for tax year 2013. Many transactions that, in previous years, would have been reported on Schedule D (Form 1041) or Schedule D-1 (Form 1041) must now be reported on Form 8949, Sales and Other Dispositions of Capital Assets. Certain transactions may be combined and the totals reported on line 1a or 8a of Schedule D (Form 1041) without completing Form 8949. For additional information, see the instructions for Lines 1a and 8a—Transactions Not Reported on Form 8949, later. Filers that use Form 8949 must complete Form 8949 before completing line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form 1041).

   Note. Beginning in tax year 2013, Schedule D-1 will no longer be used.

Capital gains and qualified dividends.   Beginning in 2013, the maximum rate for long-term capital gains and qualified dividends is 20%, as amended by the American Taxpayer Relief Act of 2012 (ATRA), P.L. 112–240. For 2013, the 20% rate applies to estates and trusts with income above $11,950. The 0% and 15% rates continue to apply to certain threshold amounts.

E-filing.   For tax year 2013, Forms 1041 can be e-filed through the Legacy Electronic Management System (EMS) or through Modernized e-File (MeF). Form 8453-F, U.S. Estate or Trust Income Tax Declaration and Signature for Electronic Filing, will be used for EMS e-filed returns and new Form 8453-FE, U.S. Estate or Trust Declaration for an IRS e-file Return, will be used for MeF e-filing.

For returns e-filed through MeF.

If Form 1041 is e-filed through MeF, then Schedule D must also be e-filed through MeF. Additionally, all Forms 8949 must be e-filed with the 1041 MeF return.

For more information about e-filing returns through MeF, see Publication 4164, Modernized e-File (MeF) Guide for Software Developers And Transmitters, Processing Year 2014.

For returns e-filed through Legacy EMS.

If Form 1041 is e-filed through Legacy EMS, then Schedule D must also be e-filed with Form 1041. Form 8949 cannot be e-filed with a Form 1041 filed via the Legacy system. If applicable, Form 8949 must be submitted as an attachment to Form 8453-F, which can be used as a transmittal document.

For more information about e-filing returns through Legacy EMS, see Publication 1437, Procedures for the Form 1041 e-file Program, U.S. Income Tax Returns for Estates and Trusts for Tax Year 2013.


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