When preparing the final return for a Fiduciary, you may encounter the following diagnostic:
"This is a final return with either short-term or long-term capital loss carryover that has not been allocated to any remainderman. To properly distribute these items, make entries in 'Short-Term' or 'Long-term' columns for 'Other' on Distribution Percentages." (ref. #25551)
To resolve this diagnostic:
- From the Input Return tab, go to Beneficiary/Grantor Information ⮕ 1041 Distributions ⮕ Dollar Distributions.
- Remove all Amounts from this screen if applicable.
- Click on Distribution Percentages.
- Remove all percentages from the Required (Schedule B, line 9) subsection if applicable.
- Enter all percentages in the Other (Schedule B, line 10) subsection.
- Final Fiduciary returns always use the Other (Schedule B, line 10) subsection.