Instructions for Form Il-1040 Schedule F - Gains From Sales or Exchanges of Property Acquired Before August 1, 1969

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Illinois Department of Revenue
Schedule F
IL-1040 Instructions
What is the purpose of Schedule F?
If the security was traded between July 28 and 31, 1969, use the
price of the last sale during the period to value the security. If the
The purpose of this schedule is to determine, for certain property
security was not traded during the period, use the average of the
acquired before August 1, 1969, the amount of appreciation that is
bid and ask quotations on July 31, 1969, to value the security.
attributable to the period between the date you acquired the property
and August 1, 1969. Illinois does not tax the gain resulting from
If, through a tax-free exchange, you traded a listed security that you
held on August 1, 1969, for an unlisted security and in the taxable
appreciation that accrued before that date, which is the effective
year you sold the unlisted security, you must use the listed value on
date of the Illinois Income Tax Act. The amount of appreciation
that accrued before August 1, 1969, is often called the ‘‘valuation
August 1, 1969, as the fair market value.
limitation amount’’ or the ‘‘pre-August 1, 1969, appreciation amount.’’
However if, through a tax-free exchange, you traded an unlisted
security that you held on August 1, 1969, for a listed security and in
Who should file?
the taxable year you sold the listed security, you must use a bona
You should file Schedule F only if
fide appraisal, if you have one, to compute the August 1, 1969, fair
you reported a capital gain from property that you acquired before
market value. In the absence of an appraisal, you must use the
August 1, 1969, and you have a net capital gain on federal Form
‘‘number-of-months” method.
1040, Schedule D, Capital Gains and Losses, or federal Form
Other Properties: Fair Market Value Readily Ascertainable by
8949, Sales and Other Dispositions of Capital Assets; or
Appraisal – If the gain was not from a security traded or quoted
you reported a gain on federal Form 4797, Sales of Business
between July 28 and 31, 1969, enter the fair market value of the
Property, from Section 1231, 1245, and 1250 property acquired
property on August 1, 1969, only if the fair market value was
before August 1, 1969; or
readily ascertainable on that date. Attach a bona fide, independent
you reported a gain on federal Form 6252, Installment Sale
appraisal as of August 1, 1969, made by a competent appraiser of
Income, from an installment sale on property acquired before
recognized standing and ability to support the readily ascertainable
August 1, 1969.
fair market value. Book value is not generally acceptable as
Do not file Schedule F for any transaction that resulted in a loss. For
evidence of the August 1, 1969, fair market value.
exceptions, see ‘‘What if I Had Gains or Losses From Casualty or
Other Properties: Fair Market Value Not Readily Ascertainable –
Theft?”.
The Number-of-Months Method – If the fair market value of the
property was not readily ascertainable on August 1, 1969, enter
Should I attach copies of other forms?
a fraction (also called “applicable fraction’’) whose numerator is
If gain subject to the valuation limitation was reported on any of
the number of full calendar months you held the property before
the following forms or schedules, you must attach copies of them
August 1, 1969, and whose denominator is the total number of
to your Schedule F: federal Form 1040, Schedule D; federal Form
full calendar months you held the property. Do not include in the
4797; federal Form 6252; federal Form 8949; Illinois Schedule K-1-P,
numerator or denominator the month that you acquired or disposed
Partner’s or Shareholder’s Share of Income, Deductions, Credits,
of the property. If the property was acquired in July, 1969, enter zero
and Recapture; and Illinois Schedule K-1-T, Beneficiary’s Share of
in Columns E and G.
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 amount
Step 2 – August 1, 1969, Valuation Limitation
you would have entered as ‘‘cost or other basis’’ on federal Form 1040,
Schedule D (or federal Form 8949, if applicable), or federal Form 6252
Amounts for Capital (Non-depreciable) Assets
if 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 federal Form 1040, Schedule D (or federal
Column E, subtract Column F from Column E and enter the difference.
Form 8949, if applicable) or federal 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 property
Enter your share of any pre-August 1, 1969, appreciation amounts for
as shown on federal Form 1040, Schedule D (or federal Form 8949,
capital gains received from
if applicable) or federal Form 6252.
partnerships or S corporations as reported on Schedules K-1-P,
If you reported gain on the sale of your home on federal 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 federal 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
K-1-T schedules received from trusts and estates.
of its fair market value as of August 1, 1969. See below.
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.
IL-1040 Schedule F Instructions Front (R-12/17)
Printed by authority of the State of Illinois - Web only
Illinois Department of Revenue
Schedule F
IL-1040 Instructions
What is the purpose of Schedule F?
If the security was traded between July 28 and 31, 1969, use the
price of the last sale during the period to value the security. If the
The purpose of this schedule is to determine, for certain property
security was not traded during the period, use the average of the
acquired before August 1, 1969, the amount of appreciation that is
bid and ask quotations on July 31, 1969, to value the security.
attributable to the period between the date you acquired the property
and August 1, 1969. Illinois does not tax the gain resulting from
If, through a tax-free exchange, you traded a listed security that you
held on August 1, 1969, for an unlisted security and in the taxable
appreciation that accrued before that date, which is the effective
year you sold the unlisted security, you must use the listed value on
date of the Illinois Income Tax Act. The amount of appreciation
that accrued before August 1, 1969, is often called the ‘‘valuation
August 1, 1969, as the fair market value.
limitation amount’’ or the ‘‘pre-August 1, 1969, appreciation amount.’’
However if, through a tax-free exchange, you traded an unlisted
security that you held on August 1, 1969, for a listed security and in
Who should file?
the taxable year you sold the listed security, you must use a bona
You should file Schedule F only if
fide appraisal, if you have one, to compute the August 1, 1969, fair
you reported a capital gain from property that you acquired before
market value. In the absence of an appraisal, you must use the
August 1, 1969, and you have a net capital gain on federal Form
‘‘number-of-months” method.
1040, Schedule D, Capital Gains and Losses, or federal Form
Other Properties: Fair Market Value Readily Ascertainable by
8949, Sales and Other Dispositions of Capital Assets; or
Appraisal – If the gain was not from a security traded or quoted
you reported a gain on federal Form 4797, Sales of Business
between July 28 and 31, 1969, enter the fair market value of the
Property, from Section 1231, 1245, and 1250 property acquired
property on August 1, 1969, only if the fair market value was
before August 1, 1969; or
readily ascertainable on that date. Attach a bona fide, independent
you reported a gain on federal Form 6252, Installment Sale
appraisal as of August 1, 1969, made by a competent appraiser of
Income, from an installment sale on property acquired before
recognized standing and ability to support the readily ascertainable
August 1, 1969.
fair market value. Book value is not generally acceptable as
Do not file Schedule F for any transaction that resulted in a loss. For
evidence of the August 1, 1969, fair market value.
exceptions, see ‘‘What if I Had Gains or Losses From Casualty or
Other Properties: Fair Market Value Not Readily Ascertainable –
Theft?”.
The Number-of-Months Method – If the fair market value of the
property was not readily ascertainable on August 1, 1969, enter
Should I attach copies of other forms?
a fraction (also called “applicable fraction’’) whose numerator is
If gain subject to the valuation limitation was reported on any of
the number of full calendar months you held the property before
the following forms or schedules, you must attach copies of them
August 1, 1969, and whose denominator is the total number of
to your Schedule F: federal Form 1040, Schedule D; federal Form
full calendar months you held the property. Do not include in the
4797; federal Form 6252; federal Form 8949; Illinois Schedule K-1-P,
numerator or denominator the month that you acquired or disposed
Partner’s or Shareholder’s Share of Income, Deductions, Credits,
of the property. If the property was acquired in July, 1969, enter zero
and Recapture; and Illinois Schedule K-1-T, Beneficiary’s Share of
in Columns E and G.
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 amount
Step 2 – August 1, 1969, Valuation Limitation
you would have entered as ‘‘cost or other basis’’ on federal Form 1040,
Schedule D (or federal Form 8949, if applicable), or federal Form 6252
Amounts for Capital (Non-depreciable) Assets
if 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 federal Form 1040, Schedule D (or federal
Column E, subtract Column F from Column E and enter the difference.
Form 8949, if applicable) or federal 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 property
Enter your share of any pre-August 1, 1969, appreciation amounts for
as shown on federal Form 1040, Schedule D (or federal Form 8949,
capital gains received from
if applicable) or federal Form 6252.
partnerships or S corporations as reported on Schedules K-1-P,
If you reported gain on the sale of your home on federal 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 federal 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
K-1-T schedules received from trusts and estates.
of its fair market value as of August 1, 1969. See below.
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.
IL-1040 Schedule F Instructions Front (R-12/17)
Printed by authority of the State of Illinois - Web only
Step 4 – August 1, 1969, Valuation Limitation
Line 4
Add Lines 1 through 3. Enter the amount here and on Step 4, Line 9.
Amount. This part must be completed.
Step 3 – August 1, 1969, Valuation Limitation
Line 9
Amounts for Property Used in Trade or Business
Enter the amount from Step 2, Line 4.
Line 10
(Sections 1231, 1245, and 1250 Property)
Enter
If you reported a gain or loss from an involuntary conversion because
of casualty or theft of property acquired before August 1, 1969, see
the amount from Step 3, Line 8 if your federal Form 1040,
‘‘What if I Had Gains or Losses From Casualty or Theft?”.
Schedule D, Line 11, shows a gain; or
Line 5
zero if your federal Form 1040, Schedule D, Line 11, is blank or
shows a loss.
Column A – Enter a description of the property as shown on your
federal Form 4797 or federal Form 6252.
Line 11
Column B – Enter the month and year you acquired the property. For
Add Lines 9 and 10 and enter the total.
securities you acquired through the exercise of rights, warrants, or
Line 12
options, enter the date exercised.
Enter
Column C – Enter the month and year you disposed of the property.
the net capital gain from your federal Form 1040, Schedule D, Line
Column D – Enter the total gain in the taxable year reported for
16; or
federal income tax purposes from each property listed in Column A.
zero if your federal Form 1040, Schedule D, Line 16, is blank or
These gains are shown on federal Form 4797, Part I, Line 2, Column
shows a loss.
g, and Part III, Line 24, or on federal Form 6252, Part II, Line 24.
Line 13
Column D1 – Enter for each property the portion of Column D that is
If you sold employer securities received in a distribution from a
ordinary income under Section 1245 or 1250 of the Internal Revenue
qualified employee benefit plan and realized gain on the sale, include
Code (IRC). This is reported on federal Form 4797, Part III, Lines 25b
on Line 13 the amount from Form IL-4644, Line 13.
and 26g, or on federal Form 6252, Part II, Line 25.
If you are a beneficiary of an estate or trust that received a capital
Column D2 – Enter for each property the portion of Column D that is
gain distribution from a qualified employee benefit plan or realized
a gain under Section 1231 of the IRC. Find this amount
a capital gain on the disposition of certain employer securities that
by subtracting the sum of federal Form 4797, Lines 25b, and 26g,
were distributed under such a plan, the amount of the gain you
from Line 24 of the same form, or
received as a beneficiary of such estate or trust may be subject to
on federal Form 6252, Line 26.
limitation. Include the amount of your share of these amounts.
Column E – See instructions for Step 2, Line 1, Column E.
If you received a lump-sum distribution from a qualified
Column F – If you entered the fair market value of the property
employee benefit plan and a portion of that distribution was reported
in Column E, enter in Column F the federal income tax basis as of
as capital gain on your federal Form 1040, Schedule D, you must
August 1, 1969. Federal income tax basis is the amount you would
include the amount of the capital gain on this line. However, you may
have entered as ‘‘cost or other basis’’ on federal Form 4797 or federal
claim the subtraction for this capital gain on your Form IL-1040, Line
Form 6252 if you had sold the property on August 1, 1969. If you
5, not on Schedule F. See Form IL-1040 instructions.
entered a fraction in Column E, leave Column F blank.
Column G – See instructions for Step 2, Line 1, Column G.
Lines 14 through 17
Column H – Enter the smaller of Column G or Column D1. If you
Follow the instructions on Schedule F.
show no amount in Column D1, enter zero in Column H.
What if I Had Gains or Losses From Casualty or Theft?
Column I – Enter the smaller of Column D2 or the result of
If you report a gain or a loss from an involuntary conversion because
subtracting Column H from Column G. If Column D2 is blank, enter
of casualty or theft of property acquired before August 1, 1969, follow
zero in Column I.
these steps:
Line 6
If you reported on federal Form 4797 a gain from such conversion,
Column H – Enter your share of any pre-August 1, 1969,
report the gain in accordance with the instructions for Step 3 of this
appreciation amounts for Sections 1245 and 1250 gains from
schedule.
partnerships or S corporations as reported on all K-1-P schedules,
If you reported on federal Form 4797 a net loss from such
Step 6, Line 48.
conversion, complete Step 3 only if you reported Section 1245 or
trusts or estates as reported on all K-1-T schedules, Step 6,
1250 gain on the conversion. Complete Columns A through D1 and
Line 46.
Columns E through H in accordance with the Step 3 instructions for
Column I – Enter your share of any pre-August 1, 1969, appreciation
those Columns. Enter zero in Column D2 and Column I.
amounts for Section 1231 gains from
What about partnerships or S corporations?
partnerships or S corporations as reported on all K-1-P schedules,
If you shared in pre-August 1, 1969, appreciation amounts from
Step 6, Lines 49 and 50.
a partnership or S corporation because of involuntary conversion
trusts or estates as reported on all K-1-T schedules, Step 6,
by casualty or theft of property acquired before August 1, 1969,
Line 47.
complete Step 3, Line 6, Column I as follows:
You must include the amounts reported to you on all K-1-P
If you reported a net gain on your federal Form 4797, enter your
schedules received from partnerships and S corporations and all
share of Section 1231 appreciation amounts from all K-1-P
K-1-T schedules received from trusts and estates.
schedules, Step 6, Line 49.
Line 7
If you reported a net loss on your federal Form 4797, enter
your share of Section 1231 appreciation amounts excluding
Add Lines 5 and 6, Column H. Enter the amount here and on Step 4,
appreciation amounts attributable to involuntary conversions by
Line 16.
casualty or theft from all K-1-P schedules, Step 6, Line 50.
Line 8
Add Lines 5 and 6, Column I. Enter the amount here. Also, if your
federal Form 1040, Schedule D, Line 11, shows a gain, enter the
amount from Line 8 on Step 4, Line 10.
IL-1040 Schedule F Instructions Back (R-12/17)

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