504CG: Capital Gain Income (2025)
Maryland · Comptroller of Maryland · Used for tax years 2025
Maryland Form 504CG calculates the fiduciary capital gain income subject to Maryland’s additional 2% tax. It reports net capital gain income and subtracts specified gains not subject to the additional tax. Attach it to Form 504.
Who files this form
The general instructions say to complete Form 504CG if you were required to file a 2025 Maryland fiduciary tax return and both of these apply:
- You reported federal taxable income of the fiduciary of more than $350,000 on Form 504, Line 1.
- You reported net capital gain income on federal Form 1041, Line 4.
You do not need to complete this form if your federal taxable income is $350,000 or less, or you have no net capital gain income included in your Maryland adjusted gross income.
What you'll need
Have the following available, as applicable:
- Your Maryland fiduciary income tax return, including the fiduciary name and taxpayer identification number.
- Form 504, Line 1a, for residents, or Form 504NR, Line 4, Column D, for nonresidents.
- Federal Form 1041, including Line 4 for net capital gain income.
- All Maryland Schedules K-1 from pass-through entities and trusts. Attach all Schedules K-1 to your return.
- Federal Form 8949 or 6252 for a primary residence sale.
- Federal Form 4797 for qualifying livestock sales.
- Federal Form 8949 for sales of land subject to a conservation, agricultural, or forest preservation easement.
- Federal Forms 4797, 8824, or 6252 for qualifying business property sales.
How to file
Attach Form 504CG to Form 504. The supplied text does not give a mailing address or e-filing directions.
- Print or enter all information using blue or black ink.
- Enter the fiduciary name and taxpayer identification number exactly as shown on your Maryland fiduciary income tax return.
- Complete the capital gain calculation in Part 2. Enter qualifying amounts on Lines 2 through 7 only to the extent they are included on Line 1.
- Add Lines 2 through 7 and enter the total on Line 8.
- Subtract Line 8 from Line 1. Enter the result on Line 9 and on Form 504, Line 10a. If the result is less than zero, enter zero.
- Attach all Maryland Schedules K-1 to your return.
Common mistakes
- Including an ineligible residence sale on Line 2: Do not include net capital gain income attributable to a sale totaling $1,500,000 or more.
- Claiming the livestock exclusion without meeting the income condition: Leave Line 4 blank if less than 50% of the fiduciary’s gross income for the tax year is from farming or ranching.
- Counting the same gain twice: Do not include on Line 5 any net capital gain income already reported on Line 2.
- Including ordinary gain or recaptured deductions on Line 6: Exclude ordinary gain and recaptured deductions claimable in Parts 2 and 4 of federal Form 4797.
- Entering a negative result: If Line 1 is zero or less, enter zero and go to Line 9. If the Line 9 calculation is negative, enter zero.
- Leaving out attachments: Attach Form 504CG to Form 504 and all Schedules K-1 to your return.
Questions people ask
What is Form 504CG used for?
It calculates net capital gain income subject to Maryland’s additional 2% tax on certain capital gain income.
Where do I get the amount for Line 1?
Residents use Form 504, Line 1a. Nonresidents use Form 504NR, Line 4, Column D.
How do I report capital gains from a pass-through entity or trust?
Report your distributive or pro rata share on the corresponding Lines 1 through 7. For Line 1a, total net capital gain income from all Maryland Schedules K-1 (510/511) and (504). Residents use Line 1, Column 1 of the capital gain section; nonresidents use Line 1, Column 2. Attach all Schedules K-1 to your return.
Who reports the gain when a trust sells a primary residence?
The instructions say the net capital gain income is reported on Form 504CG when the sale proceeds are reinvested in the trust. If the proceeds are distributed to a beneficiary, the beneficiary reports the net capital gain income on their Maryland income tax return.