Updated November 6, 2026. Quick answer: The 28% Rate Gain Worksheet for line 18c of Schedule D (Form 1041) totals an estate’s or trust’s collectibles gain and its taxable section 1202 gain on qualified small business stock. It has 7 lines, and line 7 goes on Schedule D, line 18c. It is only needed when lines 18a and 19 of column (3) are both greater than zero and the estate or trust reported collectibles or an excluded section 1202 gain on Form 8949, Part II.
When an estate or trust completes it
“Complete the 28% Rate Gain Worksheet, above, if lines 18a and 19 of column (3) are both greater than zero and at least one of the following applies.”
- “The estate or trust reported in Part II of Form 8949 a section 1202 exclusion from the eligible gain on qualified small business stock (as discussed earlier), or”
- “The estate or trust reported in Part II of Form 8949 a collectibles gain or loss.”
What counts as a collectible
“A collectibles gain or loss is any long-term gain or deductible long-term loss from the sale or exchange of a collectible that is a capital asset.” “Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property.”
The IRS adds “Also include gain (but not loss) from the sale or exchange of an interest in a partnership, S corporation, or trust held for more than 1 year that is attributable to the unrealized appreciation of collectibles.”
The 7 lines as the IRS prints them
The worksheet is headed “Keep for Your Records”. Line 2 has three bullets and a closing sentence, shown as separate rows below.
| Line | As printed in the IRS worksheet |
|---|---|
| 1 | “Enter the total of all collectibles gain or (loss) from items reported on Form 8949, Part II” |
| 2 | “Enter as a positive number the total of:” |
| 2, bullet 1 | “Any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with code” Q “in column (f), for which you excluded 50% of the gain;” |
| 2, bullet 2 | “2/3 of any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with code” Q “in column (f), for which you excluded 60% of the gain; and” |
| 2, bullet 3 | “1/3 of any section 1202 exclusion you reported in column (g) of Form 8949, Part II, with code” Q “in column (f), for which you excluded 75% of the gain.” |
| 2, closing | “Don’t make an entry for any section 1202 exclusion that is 100% of the gain.” |
| 3 | “Enter the total of all collectibles gain or (loss) from Form 4684, line 4 (but only if Form 4684, line 15, is more than zero); Form 6252; Form 6781, Part II; and Form 8824” |
| 4 | “Enter the total of any collectibles gain reported to the estate or trust on:” “Form 1099-DIV, box 2d;” “Form 2439, box 1d; and” “Schedule K-1 from a partnership, S corporation, estate, or trust.” |
| 5 | “Enter the estate’s or trust’s long-term capital loss carryovers from Schedule D, line 15, and from box 11, code D of Schedule K-1 (Form 1041) from another estate or trust” |
| 6 | “If Schedule D, line 7 is a (loss), enter that (loss) here. Otherwise, enter -0-” |
| 7 | “Combine lines 1 through 6. If zero or less, enter -0-. If more than zero, also enter this amount in the appropriate columns of Schedule D, line 18c” |
The section 1202 fractions on line 2
Line 2 does not take the whole exclusion in every case. It takes all of an exclusion where 50% of the gain was excluded, 2/3 of it where 60% was excluded, and 1/3 of it where 75% was excluded, and nothing where the exclusion was 100%. Each fraction is printed in the bullets above; the fractions are the IRS’s, and the example below applies the 2/3 fraction to an assumed exclusion.
A worked example with assumed amounts
The IRS prints no filled-in example for this worksheet. The case below uses assumed amounts and only the printed arithmetic.
| Line | What it holds | Amount |
|---|---|---|
| 1 | Collectibles gain from Form 8949, Part II (assumed, used in the computed rows) | $9,000 |
| 2 | Section 1202 exclusion of $12,000 (assumed, used in the computed rows) at the 60% level: 2/3 of it (computed) | $8,000 |
| 3 | Collectibles gain from Form 4684, Form 6252, Form 6781 and Form 8824, none (assumed, used in the computed rows) | -0- |
| 4 | Collectibles gain reported on a Schedule K-1 (assumed, used in the computed rows) | $1,500 |
| 5 | Long-term capital loss carryover, entered in parentheses (assumed, used in the computed rows) | $2,000 |
| 6 | Schedule D, line 7 is not a loss (assumed, used in the computed rows) | -0- |
| 7 | Lines 1 through 6 combined: $9,000 plus $8,000 plus $1,500 minus $2,000 (computed) | $16,500 |
Line 2 is 2/3 of $12,000, which is $8,000 (computed). Line 7 is $9,000 plus $8,000 plus $1,500 minus $2,000, which is $16,500 (computed). It is more than zero, so it is also entered on Schedule D, line 18c.
Which edition this page reads
This page reads the 2025 Instructions for Schedule D (Form 1041), the file irs.gov served on November 5, 2026 (sha256 in the kit data). The worksheet is on printed page 10. The Form 8949, Form 4684, Form 6781 and Form 8824 line references belong to the 2025 forms, so read the instructions for the year you are filing.
Common mistakes
- Completing the worksheet when only one of lines 18a and 19 of column (3) is greater than zero. Both must be.
- Entering the full section 1202 exclusion on line 2 for a 60% or 75% exclusion. Those take 2/3 and 1/3 of it.
- Making an entry for a section 1202 exclusion that is 100% of the gain. The worksheet says not to.
- Entering the carryover on line 5 or the loss on line 6 as a positive number. Both are printed in parentheses and reduce the total.
- Counting loss from an interest in a partnership, S corporation or trust. The IRS says to include gain, but not loss.
Related: the Form 1040 version of this worksheet, Form 8949 code Q, and Form 1041 lines 4 to 9.
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Answer againSources
- 2025 Instructions for Schedule D (Form 1041), Capital Gains and Losses: https://www.irs.gov/pub/irs-pdf/i1041sd.pdf
- IRS, About Schedule D (Form 1041), Capital Gains and Losses: https://www.irs.gov/forms-pubs/about-schedule-d-form-1041
Read from the IRS documents linked above on November 6, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.