990-US: Sale information appearing on Schedule D for Form 1120 instead of Schedule D for Form 1041 (FAQ)

Alerts and notices

Question

Why is information appearing on Schedule D (Form 1120) instead of Schedule D (Form 1041)?

Answer

The application defaults to calculating Form 990-T as a corporation if the type of organization entered on Screen 990 is C or O, except for a few section 501(c) type organizations that are considered trusts.

  • If Form 990-T uses the corporate tax rates to calculate the unrelated business income tax, then the Schedule D (Form 1120) is used.
  • If Form 990-T uses the trust tax rates, then the Schedule D (Form 1041) is used for sale of capital asset information.

Use the Organization type field on Screen 990T to identify the organization as a corporation (code 1) or trust (code 2, 3, or 4).