741 Schedule D: Kentucky Capital Gains and Losses (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 741 Schedule D reports an estate's or trust's short-term and long-term capital gains and losses. It also calculates capital loss limitations and capital loss carryovers from 2024 to 2025 and is enclosed with Form 741.
Who files this form
Schedule D is for estates and trusts reporting Kentucky capital gains and losses with Form 741. It includes short-term and long-term transactions, capital gain distributions, and capital loss carryovers.
What you'll need
Have the estate or trust’s name and Federal Employer Identification Number ready. Depending on the transactions being reported, you may also need:
- Forms 1099-B showing sales proceeds and reported basis.
- Forms 8949 listing Kentucky transactions and adjustments.
- Federal Forms 2439, 4684, 4797, 6252, 6781 and 8824, as applicable.
- Information about gains or losses from partnerships, S corporations and other fiduciaries, and capital gain distributions.
- The 2023 Schedule D, line 29 for a short-term capital loss carryover and line 36 for a long-term carryover.
- Form 741 and federal Form 1041 amounts for the loss and Schedule M calculations.
How to file
Enclose Schedule D with Form 741. Use Form 8949 to list your Kentucky transactions for lines 1(b), 2, 3, 8(b), 9 and 10.
Common mistakes
- Do not duplicate transactions on lines 1(a) or 8(a) if you choose to report all those transactions on Form 8949. Leave the applicable line blank and go to line 1(b) or 8(b).
- Use Form 8949 to list Kentucky transactions for lines 1(b), 2, 3, 8(b), 9 and 10.
- If line 19, column 3 shows a net loss, complete Part IV. If that loss is more than $3,000, also complete Part V to determine the capital loss carryover.
- Complete Part V, Section B only if both line 7 and line 19, column 3 show a loss. Complete Section C only if both line 16 and line 19, column 3 show a loss.
- Remember to enclose Schedule D with Form 741.
Questions people ask
What is the difference between short-term and long-term gains and losses?
Part I covers assets held one year or less. Part II covers assets held more than one year.
How do I calculate gain or loss in column (h)?
Subtract cost or other basis in column (e) from proceeds in column (d), then combine the result with the adjustment in column (g).
What amount goes on line 20 for a capital loss?
Enter the smaller of the net loss on line 19, column 3, or $3,000. The form also directs you to enter any additional loss not reported on federal Form 1041 on Form 741, Schedule M, line 7.
Where do I calculate carryovers from 2024 to 2025?
Use Part V. Line 29 gives the short-term capital loss carryover, and line 36 gives the long-term capital loss carryover.
Where do I report a net gain not reported on federal Form 1041?
Enter the net gain shown on line 19, column 3 that is not reported on federal Form 1041 on Form 741, Schedule M, line 3.