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Department of the Treasury 2020 Internal Revenue Service Instructions for Schedule D (Form 1120) Gains and Losses

Section references are to the Internal Revenue • Worthlessness of a ; • Election to defer a qualified section Code unless otherwise noted. • The 's of gain or 1231 gain invested in a QOF. loss from a partnership, S corporation, Future Developments estate, or trust; Use Form 4684, Casualties and • Elections to defer capital gain Thefts, to report involuntary conversions For the latest information about of property due to casualty or theft. developments to Schedule D (Form invested in a Qualified Opportunity Fund 1120) and its instructions, such as (QOF); and Use Form 6781, Gains and Losses legislation enacted after they were • Dispositions of in QOFs. From Section 1256 Contracts and published, go to IRS.gov/Form1120. Complete all applicable lines of Form Straddles, to report gains and losses 8949 before completing line 1b, 2, 3, 8b, from section 1256 contracts and General Instructions 9, or 10 of Schedule D (Form 1120). straddles. See the Instructions for Form 8949 for Use Form 8824 if the corporation Purpose of Schedule special provisions and exceptions to made one or more “like-kind” Use Schedule D to: completing Form 8949 for certain exchanges. Generally, a like-kind • Figure the overall gain or loss from . Also, see the instructions exchange occurs when the corporation transactions reported on Form 8949, for lines 1a and 8a, later, for more exchanges qualifying or Sales and Other Dispositions of Capital information about when to use Form real property for real ; 8949. property of a like kind. For exchanges of • Report certain transactions the Use Form 4797 to report the capital assets, include the gain or (loss) corporation does not have to report on following. from Form 8824, if any, on Schedule D Form 8949; • The sale or exchange of: (Form 1120), line 5 or line 13, as • Report gain from Form 6252, 1. Real property used in a trade or applicable. Installment Sale Income, or from Part I business; of Form 4797, Sales of Business Additional information. For more 2. Depreciable and amortizable Property; information, see the instructions for the used in a trade or • Report gain or loss from Form 8824, forms listed above. Also, see Pub. 544, business (however, see Disposition of Like-Kind Exchanges; Sales and Other Dispositions of Assets Depreciable Property Not Used in Trade • Report unused capital loss carryover; and Pub. 550, Investment Income and or Business in the Instructions for Form and Expenses. 4797); • Report capital gain distributions not reported directly on Form 1120, line 8 3. Oil, gas, geothermal, or other Capital Assets (or effectively connected capital gain mineral property; and Each item of property the corporation distributions not reported directly on 4. Section 126 property. held (whether or not connected with its Form 1120-F, 1120-C, 1120-H, or all • The involuntary conversion (other trade or business) is a capital other related forms). than from casualty or theft) of property except the following. See section used in your trade or business and 1221(a). Who Must File capital assets held more than 1 year in • in trade or other property Complete and attach Schedule D (Form connection with a trade or business or a included in inventory or held mainly for 1120) to Form 1120, 1120-C, 1120-F, transaction entered into for sale to customers. However, see the 1120-FSC, 1120-H, 1120-IC-DISC, (however, see Disposition of Note, later. 1120-L, 1120-ND, 1120-PC, 1120-POL, Depreciable Property Not Used in Trade • Accounts or notes receivable 1120-REIT, 1120-RIC, 1120-SF, or or Business in the Instructions for Form acquired in the ordinary course of the certain Forms 990-T. 4797). trade or business for services rendered • The disposition of noncapital assets or from the sale of stock in trade or other Other Forms the other than inventory or property held property included in inventory or held primarily for sale to customers in the mainly for sale to customers. Corporation May Have To ordinary course of the corporation's • Depreciable or real property used in File trade or business. the trade or business, even if it is fully Use Form 8949 to report: • The section 291 adjustment to depreciated. • Sales or exchanges of capital assets section 1250 property. • Certain copyrights; literary, musical, (defined later) not reported on another • Gains or losses treated as ordinary or artistic compositions; letters or form or schedule; gains or losses, if you are a trader in memoranda; or similar property. • Nonbusiness bad debts; securities or commodities and made a However, see the Note, later. • Undistributed long-term capital gains mark-to-market election under section • Certain patents, inventions, models from Form 2439; 475(f). or designs (whether or not patented);

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secret formulas or processes; or similar Special rules for determining basis. (including extensions). If the original property. In general, the basis of property is its return was filed on time without making • U.S. Government publications, cost. See section 1012 and the related the election, the corporation may make including the Congressional Record, regulations. Special rules for the election on an amended return filed that the corporation received from the determining basis are provided in no later than 6 months after the original government, other than by purchase at sections in subchapters C, K, O, and P due date (excluding extensions). Write the normal sales price, or that the of the Code. These rules may apply to “Filed pursuant to section 301.9100-2” corporation got from another taxpayer the: at the top of the amended return. who had received it in a similar way, if • Receipt of certain distributions with Gain on distributions of appreciated the corporation's basis is determined by respect to stock (section 301 or 1059), property. Generally, gain (but not loss) reference to the previous owner's basis. • Liquidation of another corporation is recognized on a nonliquidating Certain commodities derivative • (section 334), distribution of appreciated property to financial instruments held by a dealer in • Transfer to another corporation the extent that the property's FMV connection with its dealer activities. (section 358), exceeds its adjusted basis. See section Certain identified hedging • • Transfer from a shareholder or 311. transactions entered into in the normal reorganization (section 362), course of the trade or business. • Bequest (section 1014), Rollover of gain from empowerment • Supplies regularly used in the trade • Contribution or gift (section 1015), zone assets. If the corporation sold a or business. • -free exchange (section 1031), qualified empowerment zone asset held for more than 1 year, it may be able to Note. The corporation can elect to treat • Involuntary conversion (section elect to postpone part or all of the gain as capital assets certain musical 1033), that it would otherwise include in compositions or copyrights in musical • Certain asset acquisitions (section income. See section 1397B(b)(1) for the works it sold or exchanged. See section 1060), or definition of a qualified empowerment 1221(b)(3) and Pub. 550 for details. • Wash sale of stock (section 1091). zone asset. If the corporation makes the Capital Losses Attach an explanation if the election, the gain on the sale is corporation uses a basis other than For a corporation, capital losses are generally recognized only to the extent, actual cost of the property. See the if any, that the amount realized on the allowed in the current tax year only to instructions for Form 8949, column (e). the extent of capital gains. A net capital sale exceeds the cost of qualified A RIC's or REIT's basis in an asset it loss is carried back 3 years and forward empowerment zone assets held on January 1, 2001, for which it up to 5 years as a -term capital (replacement property) the corporation made an election to recognize any gain loss. Carry back a capital loss to the purchased during the 60-day period under section 311 of the Taxpayer extent it doesn’t increase or produce a beginning on the date of the sale and Relief Act of 1997, is the asset's closing net operating loss in the tax year to before January 1, 2021. For more market price or fair market (FMV), which it is carried. Foreign expropriation information, see section 1397B and whichever applies, on the date of the capital losses cannot be carried back, section 1391(d)(1)(A)(i). Also see Pub. deemed sale and reacquisition, whether but are carried forward up to 10 years. A 544. the deemed sale resulted in a gain or net capital loss of a regulated unallowed loss. How to report. If applicable, report investment (RIC) incurred in the sale on Part II of Form 8949 as the tax years beginning before December See section 852(f) for the treatment corporation otherwise would if it were 23, 2010, is carried forward up to 8 of certain load charges incurred in not making the election. Enter “R” in years. There is no limit on the number of acquiring stock in a RIC with a column (f). Enter the amount of the tax years a RIC is allowed to carry reinvestment right. postponed gain as a negative number in forward a net capital loss incurred in tax Gain from installment sales. If the column (g). Put it in parentheses to years beginning after December 22, corporation sold property at a gain and it show it is negative. See the instructions 2010. will receive a payment in a tax year after for Form 8949, columns (f), (g), and (h). For more information about corporate the year of sale, it generally must report Complete all remaining columns. capital losses, see Capital Losses in the sale on the installment method Exclusion of gain from DC Zone as- Pub. 542, Corporations. unless it elects not to. However, the sets. If the corporation sold or installment method may not be used to Short- or Long-Term Gain or exchanged a qualified District of report sales of stock or securities traded Columbia Enterprise Zone (DC Zone) Loss on an established securities market. asset acquired after 1997 and before Report short-term gains or losses in Part Use Form 6252 to report the sale on 2012, and held for more than 5 years, it I. Report long-term gains or losses in the installment method. Also use Form may exclude any qualified capital gain Part II. The holding period for short-term 6252 to report any payment received that the corporation would otherwise capital gains and losses is generally 1 during the tax year from a sale made in include in income. The exclusion year or less. The holding period for an earlier year that was reported on the applies to an in, or property of, long-term capital gains and losses is installment method. Enter gain from the certain operating in the generally more than 1 year. installment sales on Schedule D, line 4 District of Columbia. For more information about holding or line 12, as applicable. See the instructions for Form 6252. DC Zone asset. A DC Zone asset is periods, see the Instructions for Form any of the following. 8949. To elect out of the installment • DC Zone business stock. method, report the full amount of the Items for Special Treatment • DC Zone partnership interest. gain on Form 8949 for the year of the • DC Zone business property. Note. For more information, see Pub. sale on a return filed by the due date 544.

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Qualified capital gain. Qualified • Section 1250 gain figured as if on market discount. See the Instructions capital gain is any gain recognized on section 1250 applied to all depreciation for Form 8949 for detailed information the sale or exchange of a DC Zone rather than the additional depreciation. about how to report the disposition of a asset, but doesn’t include any of the • Gain attributable to real property, or market discount . following. an intangible asset, that is not an Gains on certain insurance property. Gain treated as ordinary income integral part of a renewal community • Form 1120-L filers with gains on under section 1245. business. property held on December 31, 1958, Section 1250 gain figured as if Gain from a related-party transaction. • • and certain substituted property section 1250 applied to all depreciation See Sales and Exchanges Between acquired after 1958, should see section rather than the additional depreciation. Related Persons in chapter 2 of Pub. 818(c). • Gain attributable to real property, or 544. an intangible asset, that isn’t an integral • Gains from periods after December Gains and losses from passive activ- part of a DC Zone business. 31, 2014. ities. A closely held or personal service • Gain from a related-party transaction. See section 1400F (as in effect corporation that has a gain or loss that See Sales and Exchanges Between before its repeal) for more details and relates to a passive activity (section Related Persons in chapter 2 of Pub. special rules. 469) may be required to complete Form 544. 8810, Corporate Passive Activity Loss • Gain attributable to periods before How to report. If applicable, report and Credit Limitations, before 1998 and after 2016. the sale or exchange on Form 8949, completing Form 8949 and Schedule D. See section 1400B (as in effect Part II, as the corporation otherwise An applicable loss may be limited under before its repeal) for more details on DC would without regard to the exclusion the passive activity rules. See Form Zone assets and special rules. (with the appropriate box checked). 8810 and the Instructions for Form Enter “X” in column (f) and enter the 8810. How to report. If applicable, report amount of the excluded gain as a the sale or exchange on Form 8949, negative number (in parentheses) in Gains and losses of foreign corpora- Part II, as the corporation otherwise column (g). Complete all remaining tions from the disposition of invest- would without regard to the exclusion columns. See the Instructions for Form ment in U.S. real property. Foreign (with the appropriate box checked). 8949. corporations must report gains and Enter “X” in column (f). Enter the amount losses from the disposition of U.S. real Report the sale or exchange of property interests. For more information, of the exclusion as a negative number qualified community business property (in parentheses) in column (g). see section 897. Also, see section on Form 4797. See the Instructions for 897(c) for the definition of a U.S. real Complete all remaining columns. See Form 4797 for details. the Instructions for Form 8949 for property interest, section 897(k) for details. Gain on the constructive sale of cer- special rules for real estate investment tain appreciated financial positions. trusts, and section 897(l) for special Report the sale or exchange of DC Generally, if the corporation holds an rules relating to qualified foreign Zone business property on Form 4797. appreciated financial position in stock or pension funds. See the Instructions for Form 4797 for certain other interests, it may have to details. Gain or loss on distribution of prop- recognize gain (but not loss) if it enters erty in complete liquidation. Exclusion of gain from qualified into a constructive sale (such as a “short Generally, gain or loss is recognized on community assets. If the corporation sale against the box”). See Pub. 550. property distributed in a complete sold or exchanged a qualified Gain from certain constructive own- liquidation. Treat the property as if it had community asset acquired after 2001 ership transactions. Gain in excess of been sold at its FMV. An exception to and before 2010, it may be able to the underlying net long-term capital gain this rule applies for liquidations of exclude any qualified capital gain that the corporation would have recognized certain subsidiaries. See sections 336 the corporation would otherwise include if it had held a financial asset directly and 337 for more information and other in income. The exclusion applies to an during the term of a derivative contract exceptions to the general rules. interest in, or property of, certain must be treated as ordinary income. renewal community businesses. Gain or loss on certain asset trans- See section 1260. If any portion of the fers to a tax-exempt entity. A taxable Qualified community asset. A constructive ownership transaction was corporation that transfers all or qualified community asset is any of the open in any prior year, the corporation substantially all of its assets to a following. may have to pay interest. See section tax-exempt entity or converts from a • Qualified community stock. 1260(b) for details, including how to taxable corporation to a tax-exempt • Qualified community partnership figure the interest. Include the interest entity in a transaction other than a interest. as an additional tax on Form 1120, liquidation generally must recognize • Qualified community business Schedule J, line 9g (or the applicable gain or loss as if it had sold the assets property. line for other income tax returns). transferred at their FMV. For details and Qualified capital gain. Qualified Gain on disposition of market dis- exceptions, see Regulations section capital gain is any gain recognized on count bonds. In general, if the 1.337(d)-4. the sale or exchange of a qualified corporation realizes a capital gain upon Gain or loss on an option to buy or community asset, but does not include the disposition of a market discount sell property. See sections 1032 and any of the following. bond, the gain is recharacterized as 1234 for the rules that apply to a • Gain treated as ordinary income interest income to the extent of accrued purchaser or grantor of an option or a under section 1245. market discount as of the date of securities futures contract (as defined in disposition. See sections 1276 through section 1234B). See Pub. 550 for 1278 and Pub. 550 for more information details.

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Gain or loss from a short sale of result is a net loss, complete Form section 384 may limit the amount of property. Report the gain or loss if the 6198, At-Risk Limitations. Report any recognized built-in capital gains that property used to close the short sale is gain from the capital asset on Form may be offset by preacquisition capital considered a capital asset in the hands 8949, Schedule D, and Form 6198. losses. of the taxpayer. Report any short sale Loss from a sale or exchange be- Loss from the sale or exchange of on Form 8949 in the year the sale tween the corporation and a related capital assets of an insurance com- closes. person. Except for distributions in pany taxable under section 831. If a short sale closed in 2020 but you complete liquidation of a corporation, no Capital losses of a casualty insurance did not get a 2020 Form 1099-B (or loss is allowed from the sale or company are deductible to the extent substitute statement) for it because you exchange of property between the that the assets were sold to meet entered into it before 2011, report it on corporation and certain related persons. abnormal insurance losses or to provide Form 8949 in Part I with box C checked See section 267. for the payment of and similar distributions to policyholders. See or Part II with box F checked (whichever Loss from a wash sale. A wash sale section 834(c)(6). applies). In column (a), enter (for occurs if the corporation acquires (by example) “100 sh. XYZ Co. —2010 purchase or exchange), or has a Gains and losses from partnerships, short sale closed.” Fill in the other contract or option to acquire, estates, or trusts. Report the columns according to their instructions. substantially identical stock or securities corporation's share of capital gains and Report the short sale the same way if within 30 days before or after the date of losses from in partnerships, you received a 2020 Form 1099-B (or a sale or exchange that results in a loss. estates, or trusts on the appropriate Part substitute statement) that doesn’t show The corporation cannot deduct a loss of Form 8949. Report a net short-term the proceeds (sales price). from a wash sale of stock or securities capital gain (loss) on Part I with box C Gain on certain short-term federal, (including contracts or options to checked. Report a net long-term capital state, and municipal obligations acquire or sell stock or securities) gain (loss) on Part II with box F (other than tax-exempt obligations). unless the corporation is a dealer in checked. See the Instructions for Form If a short-term governmental obligation stock or securities and the loss was 8949. sustained in a transaction made in the (other than a tax-exempt obligation) that Undistributed long-term gains from ordinary course of the corporation's is a capital asset is acquired at an a regulated investment company trade or business. For more information acquisition discount, then, on any gain (RIC) or real estate investment trust on wash sales, see section 1091 and realized, a portion is treated as ordinary (REIT). Report the corporation's share Pub. 550. income and any remaining balance is of long-term gains from Form 2439, treated as a short-term capital gain. See The wash sale rules don't apply to a Notice to Shareholder of Undistributed section 1271. redemption of shares in a floating-NAV Long-Term Capital Gains, on Form Contingent payment debt instru- (net asset value) market fund. 8949, Part II (with box F checked). Enter ments. If the corporation sells a Report the transaction as the “From Form 2439” in column (a). Enter taxable contingent payment debt corporation otherwise would on Form the gain in column (h). Leave all other instrument subject to the noncontingent 8949, Part I or II (depending on how columns blank. See the Instructions for bond method at a gain, the gain is long the corporation owned the stock or Form 8949. ordinary income (interest income), even securities). Check the appropriate box. Amounts from Form 2438. Enter any if the corporation holds the debt Enter “W” in column (f). Enter the net short-term capital gain from line 4 of instrument as a capital asset. If the nondeductible loss as a positive number Form 2438, Undistributed Capital Gains corporation sells a taxable contingent in column (g). Complete all remaining Tax Return, on Form 8949, Part I, with payment debt instrument subject to the columns. See the Instructions for Form box C checked. Identify the gain as “Net noncontingent bond method at a loss, 8949. short-term capital gain from Form 2438 its loss is an ordinary loss to the extent Loss from securities that are capital line 4” in column (a). Enter the amount of its prior original issue discount (OID) assets that become worthless dur- of the gain in column (h). Leave all other inclusions on the debt instrument. If the ing the year. Except for securities held columns blank. debt instrument is a capital asset, treat by a bank, treat the loss as a capital loss any loss that is more than the Enter the amount from line 12 of as of the last day of the tax year. See corporation's prior OID inclusions as a Form 2438 on Form 8949, Part II, with section 582 for the rules on the capital loss. See Regulations section box F checked. Identify the gain as treatment of securities held by a bank. 1.1275-4(b) and Pub. 1212, Guide to “Undistributed capital gains not Original Issue Discount (OID), for more Losses limited after an ownership designated (from Form 2438)” in column information on contingent payment debt change or acquisition. If the (a). Enter the amount of the gain in instruments subject to the corporation has undergone an column (h). Leave all other columns noncontingent bond method. “ownership change” as defined in blank. See the Instructions for Form 8949 section 382(g), section 383 may limit the NAV method for money market for information on how to report the gain amount of capital gains that may be funds. Report capital gain or loss or loss. offset by prechange capital losses. In determined under the net asset value addition, section 382(h) may in some (NAV) method with respect to shares in At-risk limitations (section 465). If cases limit capital losses recognized a money market fund on Form 8949, the corporation sold or exchanged a after an ownership change when the Part I, with box C checked. Enter the capital asset used in an activity to which loss accrued before the ownership name of each fund followed by “(NAV)” the at-risk rules apply, combine the gain change. Also, if a corporation acquires in column (a). Enter the net gain or loss or loss on the sale or exchange with the control of another corporation (or in column (h). Leave all other columns profit or loss from the activity. If the acquires its assets in a reorganization),

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blank. See the Instructions for Form If you have to add two or more Instead of reporting this transaction on 8949. amounts to figure the amount to enter Form 8949, the corporation can enter on a line, include cents when adding the $6,000 on Schedule D, line 8a, column Deferral of gain invested in Qualified amounts and round off only the total. (d); $2,000 in column (e); and $4,000 Opportunity Fund (QOF). If the ($6,000 - $2,000) in column (h). corporation has an eligible gain (defined Disposal of QOF investment. If the below), the corporation can invest that corporation disposed of any investment If the corporation had a second gain in a QOF and elect to defer part or in a QOF during the tax year, check the transaction that was the same except all of the gain that it would otherwise box on the top of Schedule D and see that the proceeds were $5,000 and the include in income. The gain is deferred the Instructions for Form 8949 for basis was $3,000, combine the two until the corporation disposes of the additional reporting requirements. transactions. Enter $11,000 ($6,000 + investment in the QOF or December 31, $5,000) on Schedule D, line 8a, column 2026, whichever is earlier. If the Parts I and II (d); $5,000 ($2,000 + $3,000) in column corporation makes the election, only (e); and $6,000 ($11,000 - $5,000) in include gain to the extent, if any, the Lines 1a and 8a—Transactions not column (h). amount of realized gain is more than the reported on Form 8949. The corporation can report on line 1a (for Example 2—Basis not reported to aggregate amount invested in a QOF the IRS. The corporation received a during the 180-day period beginning on short-term transactions) or line 8a (for long-term transactions) the aggregate Form 1099-B showing proceeds (in the date the gain was realized. The box 1d) of $6,000 and cost or other corporation also may be able to totals from any transactions (other than sales of collectibles) for which: basis (in box 1e) of $2,000. Box 3 is not permanently exclude the gain from the checked, meaning that basis was not sale or exchange of any investment in a • The corporation received a Form 1099-B (or substitute statement) that reported to the IRS. Do not report this QOF if the investment is held for at least transaction on line 1a or line 8a. 10 years. shows basis was reported to the IRS and does not show any adjustments in Instead, report the transaction on Form QOF. A QOF is any investment box 1f or box 1g; 8949. Complete all necessary pages of vehicle that is organized as either a • The Ordinary checkbox in box 2 of Form 8949 before completing line 1b, 2, corporation or partnership for the Form 1099-B (or substitute statement) is 3, 8b, 9, or 10 of Schedule D. purpose of investing in eligible property not checked; Example 3—Adjustment. The that is located in a Qualified Opportunity • The QOF checkbox in box 3 of Form corporation received a Form 1099-B Zone. 1099-B (or substitute statement) is not showing proceeds (in box 1d) of $6,000 checked; and and cost or other basis (in box 1e) of Eligible gain. Gain that is eligible to The corporation does not need to $2,000. Box 3 is checked, meaning that be deferred if it is invested in a QOF • make any adjustments to the basis or basis was reported to the IRS. However, includes any amount treated as a capital type of gain or loss reported on Form the basis shown in box 1e is incorrect. gain for federal income tax purposes. 1099-B (or substitute statement), or to Do not report this transaction on line 1a See section 1400Z for more details its gain or loss. or line 8a. Instead, report the transaction on QOFs and special rules. Also, see See How To Complete Form 8949, on Form 8949. See the instructions for IRS.gov/Ozfaqs. Columns (f) and (g) in the Instructions Form 8949, columns (f), (g), and (h). How to report. Report the eligible for Form 8949 for details about possible Complete all necessary pages of Form gain as the corporation normally would adjustments to the corporation's gain or 8949 before completing line 1b, 2, 3, 8b, on Form 8949 and Schedule D. See the loss. 9, or 10 of Schedule D. Instructions for Form 8949 for how to If the corporation chooses to report Lines 1b, 2, 3, 8b, 9, and 10—Trans- report the deferral. You will also need to these transactions on lines 1a and 8a, actions reported on Form 8949. annually attach to your tax return Form do not report them on Form 8949. Also, Complete Form 8949 before completing 8997, Initial and Annual Statement of the corporation does not need to attach Schedule D, lines 1b, 2, 3, 8b, 9, and Qualified Opportunity Fund a statement to explain the entries on 10. Enter on Schedule D, lines 1b, 2, Investments, until you dispose of the lines 1a and 8a. and 3, respectively, the short-term totals QOF investment. For more information, Figure gain or loss on each line. from all Forms 8949, Part I, line 2, with see Form 8997 and its instructions. Subtract the cost or other basis in box A, B, or C, respectively, checked. column (e) from the proceeds (sales Enter on Schedule D, lines 8b, 9, and Specific Instructions price) in column (d). Enter the gain or 10, respectively, the long-term totals loss in column (h). Enter negative from all Forms 8949, Part II, line 2, with Rounding off to whole dollars. You amounts in parentheses. box D, E, or F, respectively, checked. may enter decimal points and cents Example 1—Basis reported to the Line 6. Enter any unused capital loss when completing your return. However, IRS. The corporation received a Form carryover. Attach a statement showing you should round off cents to whole 1099-B reporting the sale of stock held how the carryover was computed. dollars on your return, forms, and for 3 years, showing proceeds (in schedules to make completing your Line 14. Enter the total capital gain box 1d) of $6,000 and cost or other return easier. You must either round off distributions paid by a RIC or REIT basis (in box 1e) of $2,000. Box 3 is all amounts on your return to whole during the year, regardless of how long checked, meaning that basis was dollars, or use cents for all amounts. To the corporation owned stock in the RIC reported to the IRS. The corporation round, drop amounts under 50 cents or REIT. does not need to make any adjustments and increase amounts from 50 to 99 to the amounts reported on Form Also enter any amount received from cents to the next dollar. For example, 1099-B or enter any codes. This was a RIC or REIT that qualifies as a $8.40 rounds to $8 and $8.50 rounds to the corporation's only 2020 transaction. distribution in complete liquidation $9. under section 332(b) and is designated

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by the RIC or REIT as a capital gain distribution. See section 332(c).

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