Trust (1041) incurred a loss in it's first year (2019). Can that loss be carried forward as a deduction (15b) in 2020?

[Jam772]

In the 1st year of the Trust (created in 2019), we had a loss (due to home sale loss in final estate that we carried into the Trust).  For 2020, the trust now has gains, can the 2019 loss be carried forward (on line 15b of the 1041) into 2020 to offset the gains?  If so any special statement needed explaining the 2019 loss carryover?

[Anonymous_]

The program, assuming you used TurboTax Business in 2019, will carry forward a capital loss or a passive loss.

However, if the loss was from the sale of personal use property (e.g., the home was being used as a residence by a beneficiary), then it is not deductible and cannot be carried forward.

[Jam772]

I guess that's my main issue, TT Business isn't carrying it forward to this year.  The loss is correct from 2019 (on line 23 of the 1041) that was imported, but I would have assumed TT would bring that loss number over to the 2020 return and when I look at the form view I don't see that loss brought over to 15b on the 2020 1041.  Should that be automatic or am I missing something?

[Anonymous_ · Accepted solution]

The carryover should be automatic except for an NOL. 

With respect to an NOL, you have to calculate and enter an NOL manually; TurboTax does not support calculating an NOL nor will it automatically carry forward an NOL. 

[Jam772]

Thank You