741 Schedule D: Kentucky Capital Gains and Losses (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Form 741 Schedule D reports an estate's or trust's short-term and long-term capital gains and losses. It summarizes amounts for beneficiaries and the estate or trust and calculates capital loss limitations and carryovers from 2025 to 2026.
Who files this form
Kentucky Schedule D (Form 741) is for estates and trusts reporting Kentucky capital gains and losses. The form directs you to enclose it with Form 741.
What you'll need
Have the estate or trust’s name and Federal Employer Identification Number available. Depending on the transactions you report, you may also need:
- Forms 1099-B showing sales proceeds and basis information.
- Form 8949 listing Kentucky transactions for Schedule D lines 1(b), 2, 3, 8(b), 9 and 10.
- Federal Forms 2439, 4684, 4797, 6252, 6781 and 8824, as applicable.
- Amounts for gains or losses from partnerships, S corporations and other fiduciaries, and capital gain distributions.
- Your 2024 Schedule D, lines 29 and 36, for capital loss carryovers.
- Form 741 and federal Form 1041 amounts needed for the summary and loss calculations.
How to file
Enclose the completed Schedule D with Form 741. Use Form 8949 to list your Kentucky transactions for lines 1(b), 2, 3, 8(b), 9 and 10.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Reporting the same transactions twice: If you choose to report all qualifying short-term Form 1099-B transactions on Form 8949, leave line 1(a) blank and go to line 1(b). For qualifying long-term transactions, leave line 8(a) blank and go to line 8(b).
- Skipping the loss calculation: If line 19, column 3 shows a net loss, complete Part IV. If that loss is more than $3,000, complete Part V to determine the carryover.
- Using negative amounts where positive amounts are requested: Lines 22, 25 and 30 specifically require losses to be entered as positive amounts.
- Completing carryover sections without the required losses: Complete Part V, Section B only if both line 7 and line 19, column 3 show losses. Complete Section C only if both line 16 and line 19, column 3 show losses.
Questions people ask
What counts as short-term or long-term?
Assets held one year or less belong in Part I, short-term capital gains and losses. Assets held more than one year belong in Part II, long-term capital gains and losses.
Where do I enter capital losses carried over from 2024?
Enter the short-term carryover from 2024 Schedule D, line 29, on line 6. Enter the long-term carryover from 2024 Schedule D, line 36, on line 15.
What amount goes on line 20 for the capital loss limitation?
Enter the smaller of the net loss on line 19, column 3, or $3,000.
Where do amounts not reported on federal Form 1041 go?
Enter the net gain from line 19, column 3 that is not reported on federal Form 1041 on Form 741, Schedule M, line 3. Enter any additional loss not reported on federal Form 1041 on Form 741, Schedule M, line 7.
Where does the form calculate carryovers to 2026?
Part V calculates capital loss carryovers from 2025 to 2026. Line 29 shows the short-term carryover, and line 36 shows the long-term carryover.