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Filing final return for a client who died in 2018. Capital loss carryovers shouldn't be subject to the 3K limit. How can I use more that limit? PS not allowing me.

costataxservice
Level 1

According to the IRS, capital losses can be used on the final tax return.  Then lost forever.  How do I make Proseries Basic let me go beyond the limit?  I've already indicated the date of death.  

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garman22
Level 13
Level 13

They expire after death. Where is your cite?

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9 Comments 9
garman22
Level 13
Level 13

They expire after death. Where is your cite?

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Just-Lisa-Now-
Level 15
Level 15
isn't it on a final trust or estate return the losses can be used and distributed to the beneficiaries on the final K1?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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garman22
Level 13
Level 13
I agree with you re: trust/estates. The remaining losses are released.
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IRonMaN
Level 15
"According to the IRS, capital losses can be used on the final tax return"

Read the not so fine print - 1041 vs 1040.

Slava Ukraini!
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Just-Lisa-Now-
Level 15
Level 15
@costataxservice   I think you're missing an important detail....the type of return its referring to.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 15
Isn't that Date of Death only on the personal tax return?  If so, he is talking about the 1040, and it is limited to $3000.
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costataxservice
Level 1
Yes it is a 1040.  I can't find anything that says that it is still limited.  Sounds pretty unreasonable if still subject to 3000.
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Just-Lisa-Now-
Level 15
Level 15
Its only on a fiduciary return (1041) that the losses can flow through to the beneficiaries in the final year.   

It doesn't work that way with individual returns (1040).

IRS rules aren't generally known for being reasonable.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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IRonMaN
Level 15
Dying also sounds pretty unreasonable to me, but it is still going to happen to all of us - eventually :cry::cry:

Slava Ukraini!
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