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sylviak19
Returning Member

If all income on Form 1041 is distributed to the beneficiaries, can I show the $600 exemption (line 20) as an NOL carryover on Form 1041?

Only income was interest, all being distributed to beneficiaries on K-1's.  The negative taxable income -$600 is only due to the exemption deduction.  Does that qualify as an NOL carryover?

1 Reply
tagteam
Level 15

If all income on Form 1041 is distributed to the beneficiaries, can I show the $600 exemption (line 20) as an NOL carryover on Form 1041?

" Does that qualify as an NOL carryover?"

No, you do not take the exemption into account when figuring an NOL. 

See https://www.irs.gov/instructions/i1041#idm140376225587104

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