1041 final year program help

[michaelmars]

i am doing the final year of an estate return which has unutilized nol's. i can't get these to flow to the k-1. all the bunny hops just bring me around in a circle from the 1041 to the k-1 back to the 1041. i can't find where there is a blue field to enter them on the k-1 nor can i find a check box anywhere telling the program to distribute them. Thanks all.

[David1980]

NOL's are lost at death, so the NOL does not get distributed to the beneficiaries. It's just gone.

Just one of those things,... On the other hand we benefit so much from the step-up basis that it ends up being a good deal for most people. Just not those that die with unused NOLs.

See Revenue Ruling 74-175.

[MontanaEA]

Was this NOL from the decedent, or did the estate generate it?

[Maribeth]

Was this NOL from the decedent, or did the estate generate it?

Mike, I played around with a final estate of mine. I could not get the final year deductions in place if I put the NOL on line 8 of Page 1 -- which for a carryforward is probably where I would have put it. However, placing the carryforward amount on the Schedule C brought the correct final year amount to the K-1. See if this will work for you.

Maribeth

[David1980]

Mike, I played around with a final estate of mine. I could not get the final year deductions in place if I put the NOL on line 8 of Page 1 -- which for a carryforward is probably where I would have put it. However, placing the carryforward amount on the Schedule C brought the correct final year amount to the K-1. See if this will work for you.

Maribeth

Actually form instructions indicate to enter it on line 15a of page 1 as an "other deduction" not subject to 2%, instead of line 8. I wonder if that would result in the same treatment as Schedule C.

[michaelmars]

NOL's are lost at death, so the NOL does not get distributed to the beneficiaries. It's just gone.

Just one of those things,... On the other hand we benefit so much from the step-up basis that it ends up being a good deal for most people. Just not those that die with unused NOLs.

See Revenue Ruling 74-175.

sorry david the nol is from the estate and isn't lost, its atx that i sscrewing up by not distributing it in a final k-1

[michaelmars]

Mike, I played around with a final estate of mine. I could not get the final year deductions in place if I put the NOL on line 8 of Page 1 -- which for a carryforward is probably where I would have put it. However, placing the carryforward amount on the Schedule C brought the correct final year amount to the K-1. See if this will work for you.

Maribeth

thanks, gonna try than once thay plow my street and i make it to the office