Ok, so I think I am on the correct paper page of the tax document, Box 11 (A) Excess Deductions on Termination(I am guessing this is the STMT the K-1 was referrring to). On the software it says: 11 Final year deduction Code A Excess deductions. Would this be the same as "Excess Deductions on Termination". After entering the amt on 11 Code A, it flowed to line 23 of the Sch A giving him a negative NOL to carry forward to 2012. Did I do this correctly?
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I am assuming you are talking about Form 1041 for an estate or trust for tax year 2011? Box 11a is Excess Deductions on Termination and it does flow to line 23 of Sche A. This gives the TP a negative NOL C/F? How did that happen?Originally posted by AZ-Tax View Post -
Amount to Schedule A
I worked on a similar Form 1041 Estate K-1 this weekend.
The amount on line 11A did indeed transfer to line 23 of Schedule A, as a positive number (i.e. a deduction) subject to the usual 2% limitations.
You may wish to be sure your Schedule K-1 is marked as "final" and also that you x'd that box on the tax software data entry page.
FEComment
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Yes 1041 Trust Final
Yes 1041 Trust and I did X Final Form 1041 for estate or trust. It flowed as a positive number to Ln 23 as well but it was a very large amt and the TP has a very low AGI.Originally posted by FEDUKE404 View PostComment
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I am not sure he has an NOL. An estate or trust would only have an NOL if it was due to a business or rental loss. See Pub 536 for rules for NOLs for individuals. Non-business deductions in excess of non-business income are not allowed when figuring NOLs. A capital loss passing through on the K-1 might produce a c/o to 2012. But that would be 11c on the K-1, not 11a.Last edited by Burke; 03-12-2013, 05:52 PM.Comment
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