IRS Form 1041 is used by the fiduciary of a domestic descendant's estate or trust to report
any applicable income, gains or losses.
income tax liability or employment taxes owed for a given tax year. Schedule D of Form 1041 is used specifically to document capital gains and losses. This form contains multiple sections requiring detailed information, so approach it with all paperwork pertaining to the estate or trust's capital gains and losses for the year in front of you. If Schedule D is not adequate to report all gains and losses, you can use Schedule D-1 to augment the original form.