@jpliu94 did you go through the Illinois topic titled “Capital Gain Adjustments,” in the Income section?
The interview asks whether any of the gain reported on your federal schedule D is from the sale of property that you acquired before August 1, 1969. If you select ‘Yes’ and continue to the next screen, there is a box asking for the amount from Illinois schedule F, Line 17. This amount is your valuation limitation.
Illinois Schedule F is used to determine the valuation limitation amount(s) for gains that result from the sale or exchange of property that was acquired before August 1, 1969. Since the Illinois Tax Code did not take effect until August 1, 1969, any appreciation of assets that occurred before that date is not subject to Illinois tax.
Please go back and review your federal schedule D (or the 1099-B worksheet associated with it) to see if it includes any assets entered with an acquisition date before August 1, 1969 (08/01/1969), and make sure that the acquisition date(s) are accurate. If you do have gain from the disposition of an asset that was acquired before August 1, 1969, then you would have a valuation limitation amount to report on schedule M, and unfortunately will have to paper file. If you don’t have any gain from the disposition of assets acquired before August 1, 1969, you should revisit the capital gain adjustments section of the Illinois interview and remove any entries there.
