K-1 Question

[RWG1950]

My customer has recently received a K-1 form. Seems a friend had died and she was among the benes of a small revocable trust.
The only items on the K-1 are in box 11. "A" $263 and "D" $202.
The "D" is a capital loss. No problems there, but the $263 from 11-A is explained on the K-1 as a final year section 67(e) excess deduction.
Customer does not itemize. I'm at a loss on what to do (if anything) with the $263.
Thanks for comments.

[BOB W]

That loss will appear on page 1 of the 1040. Schedule A not required for that deduction.

[TAXNJ]

have you looked at the instructions for box 11 A? (See below)

https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf

Box 11, Code A—Excess
Deductions on Termination -
Section 67(e) Expenses
If this is the final return of the estate or trust, and there are excess deductions on termination that are section 67(e) expenses reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code A, as an adjustment to income. Report this amount on Schedule 1 (Form 1040), Part II,
line 24k.
See Final Regulations - TD9918, for examples of allowable excess deductions on termination of an estate or trust.
Excess deductions on termination occur only during the last tax year of the trust or decedent’s estate when the total deductions (excluding the charitable deduction and exemption) are greater than the gross income during that tax year. Only the beneficiary of an estate or trust that succeeds to its property is allowed to deduct that entity’s excess deductions on termination. A beneficiary who doesn’t have enough income in that year to absorb the entire deduction can’t carry the balance over to any succeeding year.