N-40 Sch. D: Capital Gains & Losses (Form N-40) (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Schedule D (Form N-40) reports an estate's or trust's short-term and long-term capital gains and losses and is attached to the Fiduciary Income Tax Return. It also includes calculations for capital loss limitations, loss carryovers, and tax using the maximum capital gains
Who files this form
Hawaii Schedule D (Form N-40) is for reporting an estate’s or trust’s capital gains and losses. Attach it to the Fiduciary Income Tax Return, Form N-40.
The schedule covers short-term and long-term gains and losses, capital gain distributions, and capital loss carryovers.
What you'll need
Have the following information and applicable forms available:
- The estate’s or trust’s name and federal employer identification number.
- Property descriptions, acquisition and sale dates, gross sales prices, and adjusted cost or other basis plus selling expenses.
- Form N-40, including the amounts needed from lines 20 and 22.
- The 2023 Schedule D, if reporting capital loss carryovers on the 2024 schedule.
- Federal Forms 4684, 6252, 6781, and 8824 for applicable gains or losses, plus Form 2439 for applicable long-term gains or losses.
- Gain or loss information from partnerships, S corporations, and other estates or trusts, plus capital gain distribution amounts.
- Schedule D-1 and Form N-158, if applicable.
- Gain information for stock acquired through stock options from qualified high technology businesses, if applicable.
How to file
Attach the completed Schedule D to Form N-40, the Fiduciary Income Tax Return.
If line 17, column (c), shows a net gain, enter it on Form N-40, line 6. If it shows a net loss, complete Parts IV and V as necessary and report the loss from line 18 on Form N-40, line 6.
If you complete Part VI, enter the amount from line 45 on Form N-40, Schedule G, line 1, and check the “Schedule D (Form N-40)” box.
Common mistakes
- Completing the wrong parts: If lines 16 and 17, column (b), are both net gains, go to Part VI. Do not complete Parts IV and V.
- Skipping the carryover calculation: Complete Part V if the net loss on line 17, column (c), exceeds $3,000, or if taxable income on Form N-40, line 22, is zero or less.
- Completing carryover sections when they do not apply: Complete Part V, Section B, only if both line 6 and line 17, column (c), show losses. Complete Section C only if both line 14 and line 17, column (c), show losses.
- Missing final-return entries: On a final return, also enter the short-term carryover from line 28 on Schedule K-1 (Form N-40), line 8b, and the long-term carryover from line 35 on line 8c.
Questions people ask
What is the difference between short-term and long-term gains and losses?
Short-term applies to assets held one year or less. Long-term applies to assets held more than one year.
Where do I enter capital losses carried over from 2023?
Enter the short-term carryover from 2023 Schedule D, line 28, on line 5 of the 2024 schedule. Enter the long-term carryover from 2023 Schedule D, line 35, on line 13.
How much of a net capital loss goes on Form N-40?
Line 18 uses the smaller of the net loss on line 17, column (c), or $3,000. Enter that amount as a loss on Form N-40, line 6.
Does this schedule calculate carryovers to the next year?
Yes. Part V calculates capital loss carryovers from 2024 to 2025. Line 28 shows the short-term carryover, and line 35 shows the long-term carryover.