TAXMAN Posted March 22, 2012 Report Posted March 22, 2012 TP received K-1 from estate final year. excess deductions being placed on schedule A not subject to 2%. Creating a large negative income. Is this a business deduction not allowed for calculating the NOL? I cannot find where it is allowed Quote
Cathy Posted March 23, 2012 Report Posted March 23, 2012 If the amount is reported on K-1 on Line 11-A, then it is reported on Line 23 of Schedule A, and it IS subject to the 2%....if that is of any help to you. Cathy Quote
TAXMAN Posted March 23, 2012 Author Report Posted March 23, 2012 Nope. I got that far and then have a big negative taxable income. I wanted to know if the deduction could be considered business deductions for calculation of a NOL. Quote
kcjenkins Posted March 27, 2012 Report Posted March 27, 2012 No, he does not get a business loss from an inheritance. Even if he inherited a business, the only way he gets a business loss is from the operation of the business, not from the Estate's K-1. Quote
DANRVAN Posted March 27, 2012 Report Posted March 27, 2012 Section 172 disallows income not attributable to a taxpayer's trade or business in the NOL calculation. Quote
TAXMAN Posted March 29, 2012 Author Report Posted March 29, 2012 Thanks. I finally came to that conclusion also. TP ain't happy but thats his problem. Quote
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