IN RESPONSE TO THE EFFECT OF A BENEFICIARY RECEIVING ON SCHEDULE K-1(1041) A LINE 11 CODE C
In the final year of a Trust or Estate, but not before then, the Form 1041 filing creates Schedules K-1 that pass through in Section 11 any deductions that were available to the Trust or Estate but in its final year are passed through to the Beneficiaries for their personal use on their own Form 1041.
Example: Long-Term Capital Loss might be a carry-forward within the Estate/Trust or might have been realized in the final year. The K-1 reports this in Section 11 and the Beneficiary can apply that Capital Loss to his/her own gains and losses, and to a limitation of $3,000 annually apply it against the ordinary income such as interest or wages.
See image below for the codes that may have been used.
Provide detail on what type of Section 11 data is reported and if needed an explanation can be provided.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
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