Schedule D (Form 1120) 1967

Page 4

PART V—TOTAL SCHEDULE

D GAINS AND LOSSES

13 Enter excess of net short-term capital gain (line 8) over net long-term capital loss (line 10) .
14 Enter excess of net long-term capital gain (line 10) over net short-term capital loss (line8) . . . . 1

15 Net gain (loss) from property other than capital assets (line 12) .
16 Total of lines 13, 14, and 15.

Enter here and on Form 1120, page 1, line 9

Alternative Tax Computation

17 Taxable income (line 30, page 1, Form 1120). . . . .

18 Net long-term capital gain reduced by any net short-term capital loss (line 14) .

19 Line 17 less line 18

20 Surtax exemption (line 19, $25,000, or amount apportioned under section 1561, whichever is lesser) . . . «

21 Line 19 less line 20 rn
22 25percentofline1B 2... ee ee
23 22 percentofline19 . . 6 ee ee ee ee
24 26 percentofline21 . . 2. 1 +

25 If multiple surtax exemption is elected under section 1562, enter 6 percent of line 20. . . . . . .
If applicable, enter here and on line 5, Schedule J, Form

26 Alternative tax—Add lines 22 through 25.
write “alt.” in the margin to the right of the entry... + + s+

1120, and

INSTRUCTIONS (Continued from reverse side of original)

Gains and losses from involuntary conversion and from the
sale or exchange of certain property used in the trade or
business.—The term “property used in the trade or business,” as
used in section 1231, means property which has been held more
than 6 months, which is used in the trade or business, and which
is either real property or property subject to depreciation under
section 167, and which is not (a) property which would prop-
erly be includible in inventory if on hand at the close of the tax-
able year, (b) property held by the taxpayer primarily for sale to
customers in the ordinary course of its trade or business, or (c)
certain copyrights or similar properties. The term includes timber,
coal, and domestic iron ore to which section 631 applies as well as
unharvested crops to which section 1231(b)(4) applies. The term
also includes livestock (but not poultry) held for draft, breeding, or
dairy purposes and held for 12 months or more from the date of
acquisition.

Section 1231 provides special treatment for the gains and losses
upon the sale or exchange of “property used in the trade or busi-
ness” and upon the compulsory or involuntary conversion of (1)
such property and (2) capital assets held for more than 6 months.
Such gains and losses are treated as gains and losses from the sale or
exchange of capital assets held for more than 6 months, if the aggre-
gate of such gains exceeds the aggregate of such losses. If, however,
the gains do not exceed the losses, such gains and losses shall not be
treated as gains and losses from the sale or exchange of capital assets.

In determining whether gains do or do not exceed losses, it is
necessary to include the gains and losses to the extent that they
would be included if they were all ordinary gains and losses. The
limitation of section 1211 on the deductibility of capital losses
does not operate to exclude any such losses from the computation
as to the excess of gains over losses, but all such losses are included
in full. The total shown on line 5 determines whether the items
reflected therein represent a long-term capital gain or an ordinary
loss. The total must be entered on line 9 or line 11, whichever
is applicable. ~

For special treatment of gain or loss upon the cutting of timber, or
upon the disposal of timber, coal, or domestic iron ore under a
contract by which the owner retains an economic interest in the
timber, coal, or iron ore, see section 631.

Long-term capital gains from regulated investment com-
panies.—Include in income as a long-term capital gain the amount
the corporation has been notified constitutes its share of the un-
distributed capital gains of a regulated investment company.

Alternative tax.—If the net long-term capital gain exceeds
the net short-term capital loss, or if there is only a net long-
term capital gain, section 1201’ imposes an alternative tax in liew
of the normal tax and surtax imposed upon taxable income, if
any, only if such tax is less than the tax imposed by section 11 (re-

lating to normal tax and surtax on corporations), sections 821 and
831 (relating to normal tax and surtax on insurance companies, other
than life insurance companies), or section 511(a)(1) (relating to
taxation of business income of certain organizations described in
section 511(a)(2)). The alternative tax is the sum of (1) a partial
tax computed at the normal tax and surtax rates on the taxable
income decreased by the excess of net long-term capital gain over net
short-term capital loss and (2) 25 percent of such excess.

If the corporation computes an alternative tax under section 1201
and is entitled to special deductions for dividends received (sections
243, 244, and 245), the special deduction for dividends paid (sec-
tion 247), the special deduction for a Western Hemisphere trade
corporation (section 922), or the special deduction for a China
Trade Act corporation (section 941), such special deductions are
to be based upon taxable income including the excess of net long-
term capital gain over net short-term capital loss.

Bonds, etc., losses of banks.—In the case of a bank, as defined
in section 581, if losses from sales or exchanges of bonds, debentures,
notes, of certificates, or other evidences of indebtedness, issued by any
corporation (including one issued by a government or political subdi-
vision thercot) exceed the gains from such sales or exchanges, such ex-
cess shall be considered as an ordinary loss and deductible in ful.

tion 582.

Dealers in securities. Capital gains and ordinary losses.
Under the provisions of section 1236, gain by a dealer in securities
from the sale or exchange of a security, as defined in section 1236,
shall in no event be considered as gain from the sale or exchange
of a capital asset unless (a) the security was, before the expiration
of the thirtieth day after the date of its acquisition, clearly identified
in the dealer's records as a security held for investment; and (b) the
security was not, at any time after the expiration of such thirtieth day,
held by the dealer primarily for sale to customers in the ordinary course
of trade or business. A loss from the sale or exchange of a security
shall be considered a capital loss if the security was clearly identified
in the dealer's records as a security held for investment.

Short sales of capital assets.—For rules regarding tax conse-
quences of certain short sales of stock or other securities (including
those dealt with on a “when issued” basis), and transactions in
commodity futures, see section 1233.

Instructions for insurance companies using this schedule.—
Companies taxable under section 831 and having losses from capital
assets sold or exchanged in order to obtain funds to meet abnormal
insurance losses, etc., shall attach a schedule corresponding to Sched-
ule A-3 of Form 1120M. For companies taxable under section 821,
all references to line numbers on Form 1120 shall be considered
as references to the appropriate line on Form 1120M.

060—16—70837-1 aro


SCHEDULE D | Gains and Losses From Sales or Exchanges
(Form 1120) of Property 19 67

U.S. Treasury Department
Internal Revenue Service

Name Employer Identification No.

PART I—GAIN FROM DISPOSITION OF DEPRECIABLE PROPERTY UNDER SECTIONS 1245 AND 1250—Assets Held More
Than 6 Months—Where double headings appear, use the first heading for section 1245 and the second heading for section 1250.

| @. Cost or other basis, cost of

a. Kind of property (if necessary, attach statement of b. Dat Date sold
ri rT write 12: 250 . Date acquired c. Date sol . " i subsequent improvements (if
destnptve detais nat shown below rite 1285 or 1280 to monéayyr) | (mo, day. yr.) 4. Gross sales price | ot purchased, attach expia-
nation) and expense of sale

f. Depreciation allowed (or allowable) since acquisition
i. Other gain

& Adjusted basis
(hess 1)

961 | (@ less sum of f-1 and f-2)

{1 Prior to January 1, 1962 | 2, After December 31
64 | After December 31,

Prior to January 1,

2 Total ordinary gain. Enter here and on line 11 and identify as gain from Part!. . . . ce
3 Total other gain. Enter here and on line 4 and identify as gain from Part! . . 7 I
PART II—SALE OR EXCHANGE OF PROPERTY UNDER SECTION 1231

1. Cost or other basis, |
cost of subsequent im- |

@. Depreciation

a. Kind of property (if necessary, attach statement | b. Date acquired fe sold allowed (or |B Gainor loss
‘ot descriptive details not shown below) me dayn yt) | (mon days yr) | &* Grose salen pric allowable) since Groverents (not pur | Gi pluse less
Ms tion) and expense of sale

5 Total (If gain, enter on line 9; if loss, enter on line 11. Identify as gain or loss from Part It.)

PART III—CAPITAL ASSETS
Short-Term Capital Gains and Losses—Assets Held Not More Than 6 Months

7 Unused capital loss carryover (attach statement). ee
8 Net short-term capital _gain (or loss) wee
Long-Term Capital Gains and Losses—Assets Held More Than 6 Months

fal_gain (or loss) .
PART IVPROPERTY OTHER THAN CAPITAL ASSETS

12 Net gain (or loss).

(059 16—TORI7=1


Schedule D (Form 1120) 1967

Page 2

PART V—TOTAL SCHEDULE D GAINS AND LOSSES

13 Enter excess of net short-term capital gain (line 8) over net long-term capital loss (line 10) .
14 Enter excess of net long-term capital gain (line 10) over net short-term capital loss (ine 8) .

15 Net gain (loss) from property other than capital assets (line 12) .
Enter here and on Form 1120, page 1, line 9

16 Total of lines 13, 14, and 15.

Alternative Tax Computation

17 Taxable income (line 30, page 1, Form 1120). «
18 Net long-term capital gain reduced by any net short-term capital loss
19 Line 17 less line 18

20 Surtax exemption (line 19, $25,000, or amount apportioned under section 1561, whichever is lesser). .

21 Line 19 less line 20

22 25 percent of line 18 . . oe
23 22percentoflinel9 . - - se ee ee ee
24 26 percent of line21 . .

25 If multiple surtax exemption is elected under section 1562, enter 6 percent of line 20
If applicable, enter here and on line 5, Schedule

26 Alternative tax—Add lines 22 through 25.
write “alt.” in the margin to the right of the entry

(ine)... ee ee ee

J, Form 1120, and

INSTRUCTIONS
(References are to the Internal Revenue Code)

Gains and losses from sales or exchanges of capital assets
and other property.—Sales or exchanges of capital assets and sales
or exchanges of property other than capital assets must be reported in
detail even though no gain or loss may be indicated.

Losses from sales or exchanges of capital assets are allowed only
to the extent of gains from such sales or exchanges. However,
a net capital loss may be carried over to each of the five succeeding tax-
able years (or to the extent such loss is attributable to a foreign
expropriation loss to each of the ten succeeding taxable years). A net
capital loss shall be treated in each such succeeding taxable year as a
short-term capital loss to the extent not allowed as a deduction against
any net capital gain of any taxable year intervening between the taxable
year in which the net capital loss was sustained and the taxable year
to which carried.

Definition of capital assets.—The term “capital assets’ means
property held by the taxpayer (whether or not connected with its
trade or business) but does not include (1) stock in trade or other
property which would properly be included in inventory if on hand
at the close of the taxable year, or property held by the taxpayer
primarily for sale to customers in the ordinary course of its trade or
business; or (2) property used in the trade or business, of a character.
which is subject to the allowance for depreciation provided in section
167, or real property used in the trade or business; or (3) certain
copyrights, literary, musical, or artistic compositions, or similar prop-
erties; or (4) accounts or notes receivable acquired in the ordinary
course of trade or business for services rendered or from the sale of
property described in (1) above; or (5) an obligation of the United
States or any of its possessions, or of a State, or any political subdivision
thereof, or of the District of Columbia, issued on or after March 1,
1941, on a discount basis and payable without interest at a fixed
maturity date not exceeding 1 year from the date of issue.

Basis.—In determining gain or loss for property acquired after
February 28, 1913, use cost, except where property was acquired by
bequest, gift, tax-free exchange, involuntary conversion, or wash
sale of stock. See sections 1014, 1015, 1031, 1033, and 1091, re-
spectively. If the amount shown as the basis is other than actual
cash cost of the property sold or exchanged, full details must be
furnished regarding the acquisition of the property.

Losses on securities becoming worthless.—If any securities
become worthless during the taxable year and are capital assets, in the
case of a taxpayer other than a bank as defined in section 581, the loss
shall be considered as a loss from the sale or exchange, on the last day
of such taxable year, of capital assets. Section 165(g) (1).

Losses not allowable.—No loss is recognized for wash sales of
stock or securities. Section 1091.

No loss is allowed (except distributions in liquidation) between
telated persons. Section 267.

Gain from disposition of depreciable property under sections
1245 and 1250—assets held more than 6 months (Part !).—
(Report any gain from such property held for 6 months or less in

(Instructions continued on reverse of duplicate)

Part IV). Except as provided below section 1245 property means
depreciable (a) personal property (other than livestock) including
intangible personal property, (b) tangible real property (except
for buildings and their structural components) if used as an integral
part of manufacturing, production, or extraction, or of furnishing
transportation, communications, electrical energy, gas, water, or
sewage disposal services, or used as a research of storage facility in
connection with these activities, and (c) elevators and ¢scalators.

Except as provided below section 1250 property means depreciable
real property (other than section 1245 property).

See sections 1245(b) and 1250(d) for exceptions and limita-
tions involving: (a) disposition by gift; (b) certain tax-free trans-
actions; (c) like kind exchanges, involuntary conversions; and (d)
sales or exchanges to effectuate FCC policies and exchanges to comply
with SEC orders.

Column f of Part 1.—In computing depreciation allowed or allow-
able for elevators or escalators enter in column f-1 depreciation prior
to July 1, 1963, and in column f-2 depreciation after June 30, 1963.

Column i of Part 1, section 1250 property only.—If held for
more than 6 months, but not more than 1 year, enter the smaller of

(1) column h, or
2) columa f-2.
If held for more than 1 yeas, enter the result of multiplying the
smaller of
Q columa h, or
2) column f-2 less the amount of depreciation computed for
the same period using the straight line method,
by the percentage obtained by subtracting from 100%, one per-
centage point for each full month the property was held in excess
of 20 months.

Where substantial improvements have been made within the
preceding ten years, see section 1250(f).

For provisions relating to recapture of exploration expenditures on
the sale or other disposition of mining property, see section 617.

Gain on sales by a “controlled” corporation.—In the case of
a sale or exchange, directly or indirectly, of property een an
individual and a corporation more than 80 percent in value of the
outstanding stock of which is owned by such individual, his spouse,
and his minor children and minor grandchildren, any gain recog-
nized to the transferor from such sale or exchange shall be treated
as gain from the sale or exchange of property which is neither a
capital asset nor property described in section 1231, if such prop-
erty in the hands of the transferee is depreciable under section
167. Section 1239.

Installment sales.—If you sold personal property for more than
$1,000 or real property regardless of amount, you may be eligible
to report any gain under the installment plan if (1) there are no pay-
ments in the year of sale, or (2) the payments in the year of sale do
not exceed 30% of the selling price. Section 453.

For treatment of a portion of payments as “unstated interest’ on
deferred payment sales, see section 483.

059—10—70837-1 oro


SCHEDULE D | Gains and Losses From Sales or Exchanges

Name Employer Identification No.

PART I—GAIN FROM DISPOSITION OF DEPRECIABLE PROPERTY UNDER SECTIONS 1245 AND 1250—Assets Held More
Than 6 Months—Where double headings appear, use the first heading for section 1245 and the second heading for section 1250.

‘a. Kind of property (if necessary, attach statement of ©. Cost or other basis, cost of
ive details not shown below—write 1245 or 1260 to Mma, | Gio dy ye) 4. Gross sales price Sulsoquant improverients (it

indicate type of a nation) and expense of sale

{. Depreciation allowed Cor allowable) since acquisition i. Ordinary gain
sted basis h. Total gain, of f-2 oF h)
ess

Adjus
(e leds sum of 1 and f-2) ‘less g) *
rior to Jani 1962 | 1-2 After December 31, 1961 | » Gone invasions)

- — OR
Prior to January 1, 1964 ‘After December 31, 1963

hath"

2 Total ordinary gain. Enter here and on line 11 and identify as gain from Parti. . . «
3 Total other gain. Enter here and on line 4 and identify as gain from Part! . . . . . oe

PART II—SALE OR EXCHANGE OF PROPERTY UNDER SECTION 1231

Depreciation | {Coat or other basis,
. Kind of property (if necessary, attach statement |b. Date acquired| —c. Date sold i allowed (or ease at pur-| Gain or oss
+ Mirtt descriptive details not shown below) Minos daylyt) | (mo, day, yr.) | & Sr0ss sales price aia nce Prorament (oot pu. Gi pluse tess)

tion)and expense of sale

4.

inter on line 9; if loss, enter on line 11. Identify as gain or loss from Part Il). . . .

PART III—CAPITAL ASSETS
Short-Term Capital Gains and Losses—Assets Held Not More Than 6 Months

6.
7 Unused capital loss carryover (attach statement). 2 2 6 ee
8B Net short-term capital gain (or loss)... se ee ee ee ee ett ee

Long-Term Capital Gains and Losses—Assets Held More Than 6 Months

10 Net long-term capital gain (or loss) . . ‘ woe ew we
PART 1¥—PROPERTY OTHER THAN CAPITAL ASSETS

11

12 Net gain (or loss). Enter here andon line 15. . . «ss ww we ew we we we ee ww

(060 16—79837—1