Fillable Schedule D (541) - Capital Gain Or Loss

Part III – Computation of

The basis of the decedent’s one-half of

If the estate or trust elects not to use the

community property is the FMV at date of

installment method and is reporting a note

Capital Loss Limitation

death. If the decedent’s death occurred after

or other obligation at less than face amount

December 31, 1986, the basis of the surviving

on line 1, state that fact in the margin and

Line 10 – If line 9, column (c), shows a loss,

spouse’s one-half of community property

give the percentage of valuation. Get federal

the loss is limited at line 10 to the smaller of

becomes the FMV on the date of the decedent’s

Publication 537, Installment Sales, and federal

the amount of the loss or $3,000.

death.

Publication 559, Survivors, Executors, and

Form 109 filers, see instructions for that form.

Administrators, for additional information.

Depreciation Methods and Property

Computation of Capital Loss

Expensing

Line 4 – Report the amount from federal

California law has not always conformed to

Form 1099-DIV, Dividends and Distributions,

Carryover from 2016 to 2017

federal law regarding depreciation methods,

box 2a, on line 4.

Complete the California Capital Loss Carryover

special credits, or accelerated write offs.

Line 7 – Enter the amount of unused capital

Worksheet to determine the capital loss

Consequently, the recovery period and the

loss carryover from prior years.

carryover to 2017.

basis on which depreciation is calculated may

There is no capital loss carryover from a

be different from the amounts used for federal

California Capital Loss Carryover Worksheet

decedent to an estate.

purposes.

1. Loss from

Part II – Summary of Part I

Before 1987, California law disallowed the

Schedule D (541), line 10,

use of accelerated cost recovery system

stated as a positive

Line 9 – Use line 9 to summarize the gain or

(ACRS). California depreciation is calculated

loss computed in Part I.

number.

. . . . . . . . . . . . . . . 1

in the same manner as in prior years for those

Column (a) — Beneficiaries

assets. The election to expense certain tangible

2. Amount from Form 541,

Enter the amounts of capital gain or loss

property does not apply to estates and trusts.

line 17.

. . . . . . . . . . . . . . . . 2

allocable to the beneficiaries. Do not allocate

Figure the original basis using the California

3. Amount from Form 541,

capital losses to beneficiaries unless the capital

law in effect when the asset was acquired, and

line 18.

. . . . . . . . . . . . . . . . 3

losses are required to offset capital gains. See

adjust it according to provisions of California

IRC Section 643(a). Any capital loss carryover

4. Subtract line 3 from line 2.

law in effect. For more information get form

for the final year is allowed to the beneficiaries,

If less than zero, enter as a

FTB 3885F, Depreciation and Amortization, and

to the extent of their distributive shares.

negative amount

. . . . . . . . 4

FTB Pub. 1001, or refer to the R&TC.

Nonresident and part-year resident

5. Combine line 1 and

D Internet Access

beneficiaries may have to report their loss

line 4. If less than zero,

carryovers, deferred deductions, and deferred

enter -0-.

. . . . . . . . . . . . . . 5

You can download, view, and print California

income differently from the manner shown on

tax forms and publications at ftb.ca.gov.

6. Loss from

their Schedule K-1 (541), Beneficiary’s Share

Schedule D (541), line 9.

. 6

Access other California state agency websites

of Income, Deductions, Credits, etc. For more

at ca.gov.

information, get FTB Pub. 1100, Taxation of

7. Enter the smaller of

Nonresidents and Individuals Who Change

line 1 or line 5.

. . . . . . . . . . 7

Specific Line Instructions

Residency.

8. Subtract line 7 from line 6.

Column (b) — Fiduciary

If you file Form 109, California Exempt

This is your capital loss

Enter the amounts of the gain or loss allocable

Organization Business Income Tax

carryover to 2017..

. . . . . . 8

to the fiduciary.

Return, attach a copy of your completed

Note: If this is the final return of the estate or

Schedule D (541) to Form 109.

Enter any capital gain paid or permanently

trust, also enter on Schedule K-1 (541),

set aside for charitable purposes, IRC

Part I – Capital Gain and Loss

line 11b.

Section 642(c), in column (b).

Line 2 – If the estate or trust sold property

Column (c) — Total

at a gain this taxable year and is to receive

The amount entered on line 9, column (c),

any payment in a later taxable year, use the

should be the total of the amounts shown on

installment method and file form FTB 3805E,

line 9, column (a) and column (b).

Installment Sale Income. If the estate or trust

Form 109 filers, see instructions for that form.

elects out of the installment method, report

the gain or loss on line 1. Also, use form

FTB 3805E if a payment was received in the

taxable year from a sale made in an earlier year

on the installment basis.

Page 2 Schedule D (541) Instructions 2016

Schedule D (541) - Capital Gain Or Loss - 2016 Page 2

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