Final 1041 for Credit Shelter Trust

[jasdlm]

Okay . . . I think I've done my homework, and I think I have this right, but it seems too good to be true, so I want to check.

Client is Trustee for father's testamentary credit shelter trust. Mother died last year, so trust assets now distribute. There is a large loss (currently at $64,000) that has been carried forward on schedule D since before I started doing the return. (Using up at standard $3,000 per year). I think that my client, given that this is the final year of the trust, gets a Schedule A deduction equal to the unused portion of the loss carry-forward. Really? A $64,000 Schedule A deduction?

This is the first 'final' fiduciary return I have done where there is a loss carryforward.

Thanks.

[TAXBILLY]

The carryover loss actually goes to Schedule D. See Line 11 codes on the K-1.

taxbilly