I am executor for an estate doing initial/final 1041 return. Form 1041 Line 22 Taxable Income is negative. So, during "Error Check", the Net Operating Loss (NOL) screen states "If you wish to carry the NOL forward, instead of carrying it back, prepare the IRC 172(b)(3), Election to Forego the Carryback Period for Net Operating Loss statement (available in Other Forms You May Need." Since this is an initial/final 1041, there is no point in carryback. I found the "IRC Elections" form and selected the election, which created the IRC 172(b)(3) election form. (Took a little looking. TT instructions for where to find this were not accurate.)
The IRS 2017 Instructions for Form 1041 (https://www.irs.gov/pub/irs-pdf/i1041.pdf) page 39, section titled "Box 11, Codes D and E-NOL Carryover" states "Upon termination of a trust or decedent's estate, a beneficiary succeeding to its property is allowed to deduct any unused net operating loss (NOL) if the carryover would be allowable to the trust or estate in a later tax year but for the termination. Enter in box 11, using codes D and E, the unused carryover amounts."
I expected TurboTax, once the "Election to Forego the Carryback" was made and the 1041 is FINAL, to create code D (and code E) on the Schedule K-1s. Is this election and Line 11 Code D/E not supported? And therefore, is it correct for me to manually add Line 11 Code D and Code E both with the same NOL allocation on the Schedule K-1s?
Thanks.
