housecallstax
Level 1

Specific bequest business assets had to be sold at a loss to pay estate administrative expenses.  There were no residuary assets.  Do the losses go on the final K-1s of the specific bequest beneficiaries?  Or, just on the final K-1 of the residuary beneficiary who received no distributions?  Or, are these excess deductions which are no longer deductible by anyone? Tax regulation citation?

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sjrcpa
Level 15

Specific bequests do not carry out income or losses. In the final year, income, capital losses and excess dedcutions on termination flow out on the residuary beneficiary(ies) K-1s.


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abctax55
Level 15
Susan...you forgot the cites :wink::wink:
"*******Tax software is no substitute for a professional tax preparer*******
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sjrcpa
Level 15
I know.

Ex-AllStar
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