Illinois Department of Revenue

         Schedule F (IL-1041) Instructions

General Information
What is the purpose of Schedule F (IL-1041)?
The purpose of this schedule is to determine, for certain property acquired before August 1, 1969, the amount of appreciation 
that is attributable to the period between the date you acquired the property and August 1, 1969. Illinois does not tax the gain 
resulting from appreciation that accrued before that date, which is the effective date of the Illinois Income Tax Act. The amount 
of appreciation that accrued before August 1, 1969, is often called the “valuation limitation amount” or the “pre-August 1, 1969, 
appreciation amount.”

Who should file Schedule F (IL-1041)?
You should file Schedule F (IL-1041) only if your reported a
 •       capital gain from property that you acquired before August 1, 1969, and you have a net capital gain on 
         federal Schedule D (Form 1041), Capital Gains and Losses, or federal Form 8949, Sales and Other Dispositions of 
         Capital Assets; 
 •       gain on federal Form 4797, Sales of Business Property, from Internal Revenue Code (IRC) Sections 1231, 1245, and 
         1250 property acquired before August 1, 1969; or
 •       gain on federal Form 6252, Installment Sale Income, from an installment sale on property acquired before 
         August 1, 1969.
Do not file Schedule F for any distribution from an employee pension, profit-sharing or stock bonus plan, or gains from the 
disposition of employer securities even though it was reported on federal Schedule D (Form 1041). Refer to the instructions for 
Form IL-1041, Line 14, to claim an exemption for distributions from these plans. Refer to instructions for Form IL-4644, to claim 
an exemption for gains on the disposition of employer securities.

Should I attach copies of other forms?
If you filed federal Schedule D (Form 1041), federal Form 4797, federal Form 6252, or federal Form 8949, you must attach 
copies of them to your Schedule F (IL-1041).
For installment sales, see the instructions on the back of Schedule F.

Should I round?
You must round the dollar amounts on Schedule F (IL-1041) to whole-dollar amounts. To do this, you should drop any amount 
less than 50 cents and increase any amount of 50 cents or more to the next higher dollar.

What if I need additional assistance or forms?
 •       For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the 
         QR code provided. 
 •       Write us at: 
         ILLINOIS DEPARTMENT OF REVENUE
         PO BOX 19001
         SPRINGFIELD IL  62794-9001
 •       Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304).
 •       Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield office) and 
         8:30 a.m. to 5:00 p.m. (all other offices), Monday through Friday.

Specific Instructions
Line 1
Column A - Enter the description of the property or full name of security as shown on your 
 •       federal Schedule D (Form 1041) or federal Form 8949, if applicable, 
 •       federal Form 4797, or 
 •       federal Form 6252.
Column B - Enter the month and year you acquired the property. For securities you acquired through the exercise of rights, 
warrants, or options, enter the date exercised.
Column C - Enter the month and year you disposed of the property.

Schedule F (IL-1041) Instructions (R-12/23) Printed by the authority of the state of Illinois - electronic only - one copy. Page 1 of 3

Column D - Enter the total gain reported this year from each disposition of property, including involuntary conversions by 
casualty or theft, as shown on
•     federal Schedule D (Form 1041) or federal Form 8949, if applicable, 
•     federal Form 4797, or 
•     federal Form 6252.
Note: Do not enter any transaction for which you incurred a loss.
Column E - Enter for each property the portion of Column D that is ordinary income under IRC Section 1245 or 1250. This is 
reported on federal Form 4797, or federal Form 6252.
Column F -  For each property figure the portion of Column D that is a gain under IRC Section 1231 from either federal Form 
6252 or federal Form 4797. 
•     federal Form 6252 - Enter the amount from Line 26. 
•     federal Form 4797 - Use the following formula and enter the result. Line 24 - (Line 25b + Line 26g)
Note: Where there is a disposition of IRC Section 1251, 1252, 1254, or 1255 property, the sum of the amounts in Columns E 
and F may be less than the amount in Column D.
Column G - Enter the gain shown on federal Schedule D (Form 1041) or federal Form 8949, if applicable.
Column H - Enter the fair market value on August 1, 1969, or the “applicable fraction” for each property. Your entry for each 
property will depend upon whether the property was a listed security on August 1, 1969, or, if it was not listed, whether you 
have an appraisal of its fair market value as of August 1, 1969. See below.
•     Listed Securities: If the gain was from a security listed on a national securities exchange or quoted in the over-the-
      counter market between July 28 and 31, 1969, enter the market value of the property on August 1, 1969.
      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 security was not traded during the period, use the average of the bid and ask quotations on July 31, 
      1969, to value the security.
•     Other Properties: Fair Market Value Readily Ascertainable by Appraisal - If the gain was not from a security traded 
      or quoted between July 28 and 31, 1969, enter the fair market value of the property on August 1, 1969, only if the fair 
      market value was readily ascertainable on that date. Attach a bona fide, independent written appraisal as of August 1, 
      1969, made by a competent appraiser of recognized standing and ability, to support the readily ascertainable fair 
      market value. Book value is not generally acceptable as evidence of the August 1, 1969, fair market value.
•     Other Properties: Fair Market Value Not Readily Ascertainable - (The Number-of-Months Method) If the fair 
      market value of the property was not readily ascertainable on August 1, 1969, enter a fraction (also called “applicable 
      fraction”) whose numerator is the number of full calendar months you held the property before August 1, 1969, and 
      whose denominator is the total number of full calendar months you held the property. Do not include in the numerator 
      or denominator the month that you acquired or disposed of the property. If the property was acquired in July 1969, 
      enter zero in Columns H and J.
Column I - If you entered the fair market value of the property in Column H, enter in Column I the federal income tax basis of 
the property (for determining gain) as of August 1, 1969. Federal income tax basis is the amount you would have entered as 
“cost or other basis” on federal Schedule D (Form 1041), federal Form 8949, or federal Form 6252 if you had sold the property 
on August 1, 1969.
Note: If you entered a fraction in Column H, leave Column I blank.
Column J - If you entered the fair market value or an appraisal value of the property in Column H, subtract Column I from 
Column H and enter the difference. However, if Column I is equal to or greater than Column H, enter zero. If you entered a 
fraction in Column H, multiply Column D by the fraction and enter the result.
Column K - Enter the smaller of Column E or Column J. If you show no amount in Column E, enter zero in Column K.
Column L - Enter the smaller of Column F or the result of subtracting Column K from Column J. If Column F is blank, enter 
zero in Column L. 
Column M - Enter the smaller of Column G or Column J. If Column G is blank, enter zero in Column M.

Line 2
Refer to all Schedules K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, you received 
from partnerships or S corporations, and all Schedules K-1-T, Beneficiary’s Share of Income and Deductions, you received 
from trusts or estates for the amounts to enter on Line 2, Columns K, L, and M.
Column K - Enter your share of any pre-August 1, 1969, appreciation amounts for IRC Sections 1245 and 1250 gain, or capital 
assets, from Schedule K-1-P, Step 6, Line 48, Column A, and Schedule K-1-T, Step 6, Line 46, Column A.
Schedule F (IL-1041) Instructions (R-12/23)                                                                     Page 2 of 3

Column L -Enter your share of any pre-August 1, 1969, appreciation amounts (including involuntary conversions by casualty 
or theft) for IRC Section 1231 gain from Schedule K-1-P, Step 6, Line 49, Column A, and Schedule K-1-T, Step 6, Line 47, 
Column A.
Column M - Enter your share of capital gain appreciation amounts from Schedule K-1-P, Step 6, Line 51, Column A, and 
Schedule K-1-T, Step 6, Line 48, Column A.
Line 3
Enter any gain you realized from a sale of employer securities received in a distribution from a qualified employee benefit plan. 
You will find the amount on Form IL-4644, Gains from Sales of Employer’s Securities Received from a Qualified Employee 
Benefit Plan, Line 18.
Lines 4 and 5
Follow the instructions on Schedule F (IL-1041). For each column, include the amount from Line 2 of that column in the total.
Line 6
Follow the instructions on Schedule F (IL-1041). Include the amounts from Lines 2 and 3.
Lines 7 through 9, Column 2 - 
Refer to Step 6 of each Schedule K-1-T you are completing to report each beneficiary’s share of the appreciation amounts.
Line 7
Column 1 - Enter the amount from Line 4. This is the total pre-August 1, 1969, appreciation amount for IRC Sections 1245 and 
1250 gain.
Column 2 - Enter the beneficiaries’ share of the amount shown on Line 7, Column 1. Enter each beneficiary’s share on each 
Schedule K-1-T, Step 6, Line 46, Column A.
Column 3 - Enter the fiduciary’s share of the amount shown on Line 7, Column 1.
Line 8 
Column 1 -Enter the amount from Line 5. This is the total pre-August 1, 1969, appreciation amount for IRC Section 1231 gain.
Column 2 - Enter the beneficiaries’ share of the amount shown on Line 8, Column 1. Enter each beneficiary’s share on each 
Schedule K-1-T, Step 6, Line 47, Column A.
Column 3 - Enter the fiduciary’s share of the amount shown on Line 8, Column 1.
Line 9
Column 1 - Enter the amount from Line 6. This is the total pre-August 1, 1969, appreciation amount for capital assets.
Column 2 - Enter the beneficiaries’ share of the amount shown on Line 9, Column 1. Enter each beneficiary’s share on each 
Schedule K-1-T, Step 6, Line 48, Column A.
Column 3 - Enter the fiduciary’s share of the amount shown on Line 9, Column 1.
Lines 10 through 13
Follow the instructions on Schedule F (IL-1041).
Line 14
If you received a lump-sum distribution from a qualified employee benefit plan and a portion of that distribution was reported 
as capital gain on your federal Schedule D (Form 1041), you must include your share of the amount of the capital gain on this 
line. (You may claim the subtraction for this capital gain on your Form IL-1041, Line 14b, not on Schedule F. See Form IL-1041 
instructions.)
If you sold employer securities received in a distribution from a qualified employee benefit plan and realized gain on the sale, 
include on Line 14 your share of the amount from Form IL-4644, Line 13.
Note: If you are a beneficiary of another estate or trust that received a capital gain distribution from a qualified employee 
benefit plan or realized a capital gain on the disposition of certain employer securities that were distributed under such a plan, 
the amount of the gain you received as a beneficiary of such estate or trust may be subject to limitation. The trustee or fiduciary 
must notify you of your share of the limitation. Include the amount of your share of such limitation on Line 14. 

Lines 15 through 18
Follow the instructions on Schedule F (IL-1041).

Schedule F (IL-1041) Instructions (R-12/23)                                                                           Page 3 of 3