1041 experts - I have a question

[schirallicpa]

This is a qualified disability trust. This is the first year. In settling the case, the attorneys were paid close to $700,000. Those expenses create a huge loss.

I was originally thinking that this would create an NOL to carryforward. Without over riding anything, ATX calls the atty fees "non-business" and excludes from the NOL calc.

Does anyone have any thoughts on this one?

Thanks.

[jainen]

>>ATX calls the atty fees "non-business"<<

What do you call them, and why?

[ed_accountant]

I believe the software is correct. They do not carryforward. Excess trustee and attorney expenses are common. They never create a NOL.