1041 Capital Loss Carry Forward Question

[Crank]

Im am doing a 1041 for a friend and have a LT capital loss of ~$7000. The program is calculating the current $3000 loss and the balance to the LT carry forward. Since this is the initial and final 1041 where does the LT loss carry forward get picked up since I assume there will be no 1041s in future years.

Obviously this is new territory for me ... after all these years.

Any help is appreciated.

[Terry D EA]

John, the loss goes on the benficiaryfiduciary K-1 see if the link below helps you.

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

[Crank]

OK, now that makes sense. I knew the loss goes to the beneficiary and on their 1040 they would carry forward any loss over $3000 but it just confused me to see it on the 1041. It's been a long tax season.

Thank you Terry!

[Terry D EA]

No problem, that is what we are all here for. Yes, this has been a long tax season and everything we experienced early on has caused me and I bet you to tread cautiously every where we go through a return. It is easy in this business to know what you are doing but question it at different times.