Note: The loss is in a revocable/living trust account, whose final taxes will be completed with the decedent's return (for income prior to death) and with the new trust (with new TIN) and estate under a 645 election (after completing form 8855) for after-death income. I'm not sure that makes a difference, but thought I'd include just in case it does...
What little I could find showed the decedent can not pass on the loss... that the loss would stay with the decedent's tax return even though the sale/loss was after the decedent passed.
This doesn't seem correct, so I'm probably wrong. If I'm wrong, what form does the decedent (me the executor) use to pass on the loss? I understand I need to transfer 1099-DIV and 1099-INT income but do not understand how I would pass on the loss. What would I do?
What is correct? ANY advice is appreciated.
Note: These are funds from the sale of a defunct (Puerto Rico Power) bond that could not be transferred and had to be sold to close decedent's account when assets were transferred to beneficiaries.
Thanks in advance!!
