Illinois Schedule F – Gains from Sales or Exchanges of Property Acquired Before August 1, 1969 (2026)
Last reviewed: 2025-11-07
Use the Illinois Tax Form Calculator Schedule F: Gains from Sales or Exchanges of Property Acquired Before August 1, 1969 as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Illinois state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Schedule F calculates the taxable portion of capital gains from property acquired before August 1, 1969. Illinois law exempts gains earned before that date from state income tax. This schedule separates the pre- and post-1969 portions of a property's appreciation to determine how much, if any, is subject to Illinois tax on your Form IL-1040.
When to File Schedule F
Use this form if you sold or exchanged real estate, stocks, bonds, or other capital assets acquired before August 1, 1969. Illinois began taxing income after that date, so any gain attributable to the earlier period is excluded from taxation.
How the Calculation Works
- Enter the total sale price (Line 1).
- Enter your adjusted basis, typically the property’s value as of August 1, 1969, or the actual cost if acquired later (Line 2).
- Subtract Line 2 from Line 1 to find the total gain (Line 3).
- Determine the percentage of gain attributable to post-1969 appreciation (Line 4).
- Multiply Line 3 by that percentage to compute the taxable portion (Line 5).
- Multiply the taxable gain by the Illinois rate of 4.95%. (Line 6).
The remainder represents the excluded gain earned before Illinois instituted its income tax. Maintain records substantiating how the 1969 basis or fair market value was determined.
| 1 | Total sale price | |
| 2 | Adjusted basis (cost or 8/1/69 value) | |
| 3 | Total gain (Line 1 − Line 2) | |
| 4 | Percentage of gain after 8/1/69 (enter as decimal) | |
| 5 | Taxable gain (Line 3 × Line 4) | |
| 6 | Illinois tax (4.95%) × Line 5 |
Example
Example 1 – Mid-Period Purchase: You purchased land in 1965 for $20,000. Its fair market value on August 1, 1969, was $50,000. You sold it in 2026 for $150,000. The total gain is $100,000, but only the portion after 1969 ($150,000 − $50,000 = $100,000) is taxable. Illinois taxes the $100,000 at 4.95%, or $4,950 total.
Example 2 – Long-Term Pre-1969 Ownership: Peter purchased farmland in 1944 for $5,000. Over the next 25 years, its fair market value increased to $40,000 as of August 1, 1969. Peter later sold the property in 2026 for $120,000. The total gain is $115,000 ($120,000 − $5,000). However, only the increase after August 1, 1969, is taxable in Illinois. The appreciation before 1969 ($40,000 − $5,000 = $35,000) is excluded. The taxable portion is therefore the gain after 1969, or $80,000 ($120,000 − $40,000). Illinois tax = $80,000 × 4.95% = $3,960.
Tips for Accuracy
- Keep records showing both your original cost and the property’s fair market value on August 1, 1969.
- For long-held property, the pre-1969 portion often forms a large share of total gain — this schedule ensures you are not taxed twice for historical appreciation.
- Appraisals, comparable sales data, or historical market indices can help establish your 1969 valuation.
- If the property was acquired after July 31, 1969, 100% of the gain is taxable in Illinois.
Importance of Schedule F
Illinois remains one of few states that recognizes the pre-tax-era exemption for capital gains. Completing Schedule F accurately prevents overpayment and helps maintain historical compliance with the Illinois Income Tax Act’s effective date.
Last reviewed: 2025-11-07: If you believe this form requires an update, please contact us.
Related Forms and References
- Form IL-1040 – Individual Income Tax Return
- Schedule M – Additions & Subtractions
- Form IL-4562 – Depreciation and Amortization Adjustments
- Illinois DOR – Schedule F Information
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Frequently Asked Questions
Do I need to file IL-1040-X if the IRS changes my income?
Yes. If the IRS adjusts your federal return and it affects Illinois tax, you must file IL-1040-X within 120 days of receiving the federal notice.
Are donations made through Schedule G-L tax-deductible?
Yes. Your Schedule G-L donations are eligible for a federal charitable deduction if you itemize on your federal Form 1040 Schedule A. Keep a copy of the filed schedule and any Lottery confirmation of your gift. The contribution will increase your Illinois payment or reduce your refund, but may lower your federal taxable income in the following year.
Changing jobs mid-year in IL
Update income/withholding and frequency; brackets are flat but credits/exemptions still matter.
Who must file Schedule FD?
You must file Schedule FD if you are a former Illinois resident who receives income (such as installment sale gains or deferred bonuses) sourced from Illinois that became taxable for federal purposes during 2026.
What documentation must accompany Schedule 1299-DA?
Attach copies of the other states’ filed tax returns, W-2s, or K-1s showing withholding and payments. Failure to attach proof can lead to denial of the credit. For convenience, you can track and upload copies directly through the MyTax Illinois portal.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.