Capital Loss on a Final 1041

[mgdtax]

On a final 1041 with a capital loss, it's not flowing through to the K-1.  I have the distribution percentages entered under 'Other (Sch B, ln 10)' in screen 7.1.  There is one 100% beneficiary.  But the loss is limited to $3K, and is not flowing through on the K-1.  There is nothing else on this return.

[George4Tacks]

Move the entries to the left as REQUIRED instead of OTHER

Confirm that the return is marked as FINAL. 

[mgdtax]

Thank you George, 

I moved the entries to the 'Other' side based on this article:

https://proconnect.intuit.com/community/fiduciary/help/1041-diagnostic-ref-25551-this-is-a-final-ret...

That wasn't working either, when I had 100.000 entered for all three - Ordinary, Short-Term, and Long-Term.

I have now tried leaving the 'Ordinary' and the 'short-term' boxes blank and entering 100.000 only in the 'Other' 'Long-Term' box.  That put the capital loss only on Sch K-1 in box 11 with a Code D.  Not sure if the loss is also supposed to be shown in full on 1041 page 1.  Currently, my 1041 line 4 is $-3,000.

Thank you!

[George4Tacks · Accepted solution]

I did give wrong info in my 1st post. It does belong in "other"

Look at the K-1 line 11. Do you see a D for the distribution of the total loss to the beneficiary? 

From the k-1 instructions for the beneficiary (which somehow we are supposed to provide with the K-1)

Box 11, Codes C and D—Unused
Capital Loss Carryover
Upon termination of the trust or
decedent’s estate, the beneficiary
succeeding to the property is allowed to
deduct any unused capital loss carryover
under section 1212.
A short-term capital loss carryover,
reported as code C, is reported on
Schedule D (Form 1040), line 5.
A long-term capital loss carryover,
reported as code D, is reported, as
appropriate, on Schedule D (Form 1040),
line 12; line 5 of the 28% Rate Gain
Worksheet for Schedule D, line 18; and
line 16 of the Unrecaptured Section 1250
Gain Worksheet for Schedule D, line 19.