Level 4

posted Jun 1, 2019 11:58:29 AM

Can a trust carry a NOL (net operating loss) forward, from a 2018 return?

Do trusts follow any special rules for Net Operating Losses? Here the trust holds real estate and will have future profits, but the first year involves a large legal expense due to a non-paying renter, and due to startup costs (but there's poor allocation as to what fees are due to which activity).

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Level 15

Jun 1, 2019 11:58:30 AM

"Can a trust carry a NOL (net operating loss) forward, from a 2018 return?"

Yes, and there is only a minor difference in the calculation of an NOL.

See https://www.irs.gov/instructions/i1041#idm140630131281904

See also https://taxmap.irs.gov/taxmap/pubs/p536-001.htm#TXMP7865bc82

1 Replies

Level 15

Jun 1, 2019 11:58:30 AM

"Can a trust carry a NOL (net operating loss) forward, from a 2018 return?"

Yes, and there is only a minor difference in the calculation of an NOL.

See https://www.irs.gov/instructions/i1041#idm140630131281904

See also https://taxmap.irs.gov/taxmap/pubs/p536-001.htm#TXMP7865bc82

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