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If the estate generates more than $600 in annual gross income, you are required to file Form 1041, U.S. Income Tax Return for Estates and Trusts. An estate may also need to pay quarterly estimated taxes. See Form 1041 instructions for information on when to file quarterly estimated taxes.
Schedule D: Capital Gains and Losses is required when a taxpayer reports capital gains or losses from investments or the result of a business venture or partnership. Schedule D is used for reporting short-term and long-term gains or losses.
Purpose of Schedule D (Form 1041) The schedule helps determine the taxable portion of these gains or losses, which are subject to specific tax rates. On Schedule D, you would report information such as the description and sale proceeds of each asset sold, its cost or basis, and the resulting capital gain or loss.
It shows the taxpayers share of income as the beneficiary of an estate or trust. The electronic/magnetic media filing of Forms 1041 includes returns filed on magnetic media (magnetic tape or floppy diskette) or electronically.
The fiduciary of a domestic decedents estate, trust, or bankruptcy estate files Form 1041 to report: The income, deductions, gains, losses, etc. of the estate or trust. The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries.

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Line 11 D - Unused Capital Loss Carryover - Long Term Capital Loss Carryover. Amounts reported in Box 11 code D represent the entitys long-term capital loss carryover and this amount will automatically flow to Schedule D (Form 1040), Line 12.

form 1041 sch d