Schedule F Il-1040 - Instructions For Form - 2014

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Illinois Department of Revenue
Schedule F
IL-1040 Instructions
What is the purpose of Schedule F?
price of the last sale during the period to value the security. If the
security was not traded during the period, use the average of the
The purpose of this schedule is to determine, for certain property
bid and ask quotations on July 31, 1969, to value the security.
acquired before August 1, 1969, the amount of appreciation that is
attributable to the period between the date you acquired the property
If, through a tax-free exchange, you traded a listed security that you
and August 1, 1969. Illinois does not tax the gain resulting from
held on August 1, 1969, for an unlisted security and in the taxable
year you sold the unlisted security, you must use the listed value on
appreciation that accrued before that date, which is the effective
date of the Illinois Income Tax Act. The amount of appreciation
August 1, 1969, as the fair market value.
that accrued before August 1, 1969, is often called the ‘‘valuation
However if, through a tax-free exchange, you traded an unlisted
limitation amount’’ or the ‘‘pre-August 1, 1969, appreciation amount.’’
security that you held on August 1, 1969, for a listed security and in
the taxable year you sold the listed security, you must use a bona
Who should file?
fide appraisal, if you have one, to compute the August 1, 1969, fair
You should file Schedule F only if
market value. In the absence of an appraisal, you must use the
you reported a capital gain from property that you acquired before
‘‘number-of-months” method.
August 1, 1969, and you have a net capital gain on U.S. 1040,
Other Properties: Fair Market Value Readily Ascertainable by
Schedule D, Capital Gains and Losses or U.S. Form 8949, Sales
Appraisal – If the gain was not from a security traded or quoted
and Other Dispositions of Capital Assets; or
between July 28 and 31, 1969, enter the fair market value of the
you reported a gain on U.S. Form 4797, Sales of Business
property on August 1, 1969, only if the fair market value was
Property, from Section 1231, 1245, and 1250 property acquired
readily ascertainable on that date. Attach a bona fide, independent
before August 1, 1969; or
appraisal as of August 1, 1969, made by a competent appraiser of
you reported a gain on U.S. Form 6252, Installment Sale
recognized standing and ability to support the readily ascertainable
Income, from an installment sale on property acquired before
fair market value. Book value is not generally acceptable as
August 1, 1969.
evidence of the August 1, 1969, fair market value.
Do not file Schedule F for any transaction that resulted in a loss. For
Other Properties: Fair Market Value Not Readily Ascertainable –
exceptions, see ‘‘What if I Had Gains or Losses From Casualty or
The Number-of-Months Method – If the fair market value of the
Theft?”.
property was not readily ascertainable on August 1, 1969, enter
a fraction (also called “applicable fraction’’) whose numerator is
Should I attach copies of other forms?
the number of full calendar months you held the property before
If gain subject to the valuation limitation was reported on any of the
August 1, 1969, and whose denominator is the total number of
following forms or schedules, you must attach copies of them to your
full calendar months you held the property. Do not include in the
Schedule F: U.S. 1040, Schedule D; U.S. Form 4797; U.S. Form 6252;
numerator or denominator the month that you acquired or disposed
U.S. Form 8949; Illinois Schedule K-1-P, Partner’s or Shareholder’s
of the property. If the property was acquired in July, 1969, enter zero
Share of Income, Deductions, Credits, and Recapture; and Illinois
in Columns E and G.
Schedule K-1-T, Beneficiary’s Share of Income and Deductions.
Column F – If you entered the fair market value of the property in
For installment sales, see instructions on the back of
Column E, enter in Column F the federal income tax basis of the
Schedule F.
property as of August 1, 1969. Federal income tax basis is the
Step 2 – August 1, 1969, Valuation Limitation
amount you would have entered as ‘‘cost or other basis’’ on U.S. 1040,
Schedule D (or U.S. Form 8949, if applicable), or U.S. Form 6252 if
Amounts for Capital (Non-depreciable) Assets
you had sold the property on August 1, 1969.
Line 1
If you entered a fraction in Column E, leave Column F blank.
Column A – Enter a description of the property or full name of
Column G – If you entered the fair market value of the property in
security as shown on your U.S. 1040, Schedule D (or U.S. Form
Column E, subtract Column F from Column E and enter the difference.
8949, if applicable) or U.S. Form 6252.
However, if Column F is equal to or greater than Column E, enter
Column B – Enter the month and year you acquired the property. For
zero. If you entered a fraction in Column E, multiply Column D by the
securities you acquired through the exercise of rights, warrants, or
fraction and enter the result.
options, enter the date exercised.
Column H – Enter the lesser of Column D or Column G.
Column C – Enter the month and year you disposed of the property.
Line 2
Column D – Enter the total gain in the taxable year for each
Enter your share of any pre-August 1, 1969, appreciation amounts for
property as shown on U.S. 1040, Schedule D (or U.S. Form 8949, if
capital gains received from
applicable) or U.S. Form 6252.
partnerships or S corporations as reported on Schedules K-1-P,
If you reported gain on the sale of your home on U.S. Form
Partner's or Shareholder's Share of Income, Deductions, Credits,
8949, enter in Column D the amount of that gain minus any “Section
and Recapture, Step 6, Line 51.
121 exclusion” you reported for your home on U.S. Form 8949.
trusts or estates as reported on Schedules K-1-T, Beneficiary's
Column E – Enter the fair market value on August 1, 1969, or the
Share of Income and Deductions, Step 6, Line 48.
‘‘applicable fraction’’ for each property. Your entry for each property
You must include the amounts reported to you on all K-1-P
will depend upon whether the property was a listed security on
schedules received from partnerships and S corporations and all
August 1, 1969, or, if it was not listed, whether you have an appraisal
of its fair market value as of August 1, 1969. See below.
K-1-T schedules received from trusts and estates.
How do I determine the fair market value of my property?
Line 3
Listed Securities: If the gain was from a security listed on a
Enter any gain you realized from a sale of employer securities
national securities exchange or quoted in the over-the-counter
received in a distribution from a qualified employee benefit plan. You
market between July 28 and 31, 1969, determine the market value
will find the amount on Form IL-4644, Gains from Sales of Employer’s
of the property on August 1, 1969, as follows:
Securities Received from a Qualified Employee Benefit Plan, Line 18.
If the security was traded between July 28 and 31, 1969, use the
IL-1040 Schedule F Instructions front (R-12/14)

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