In reply to your note that the Box 11 Final Year Deductions and Credits were
"13000.00 is Excess Deductions (A.), and 6500.00 is Long term capital loss carry over (C.)"
When you are in the TurboTax interview, in Personal - Personal Income Section - Your 2016 Income Summary
SCROLL down to the section labelled: Business Investment and Estate/Trust Income and click start for Schedule K-1.
Follow the questions as appropriate and check off Box 11 - and then make the entries from the Schedule K-1 that you received.
This is the Tax procedure for your entries:
Box 11, Code A—Excess Deductions on Termination
If this is the final return of the estate or trust, and there are excess deductions on termination, you may deduct the beneficiary’s share of the excess deductions on line 23 of Schedule A (Form 1040) as a miscellaneous itemized deduction subject to the 2% floor.
Excess deductions on termination occur only during the last tax year of the trust or decedent’s estate when the total deductions (excluding the charitable deduction and exemption) are greater than the gross income during that tax year. Only the beneficiary of an estate or trust that succeeds to its property is allowed to deduct that entity’s excess deductions on termination. A beneficiary who doesn’t have enough income in that year to absorb the entire deduction can’t carry the balance over to any succeeding year.
Box 11, Code C—Unused Capital Loss Carryover
Upon termination of the trust or decedent’s estate, the beneficiary succeeding to the property is allowed to deduct any unused capital loss carryover under section 1212.
A long-term capital loss carryover, reported as code C, is reported, as appropriate, on Schedule D (Form 1040), line 12; line 5 of the 28% Rate Gain Worksheet for Schedule D, line 18; and line 16 of the Unrecaptured Section 1250 Gain Worksheet for Schedule D, line 19.
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