chl11942
Level 3

Get your taxes done using TurboTax

Thank you for your informative and very helpful reply.

Here is some material I just found in the instructions for Schedule K-1 for 2020 that appears to provide the answer.

 

START OF BOX 11, CODE A INSTRUCTIONS - -

 

Box 11, Code A—Excess Deductions on Termination - Section 67(e) Expenses 

If this is the final return of the estate or trust, and there are excess deductions on termination that are section 67(e) expenses reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code A, as an adjustment to income. Report this amount as a write-in on Schedule 1 (Form 1040), Part II, line 22. On the dotted line next to line 22, enter the amount of the expense using the code “ED67(e)”. Include the expense in the total amount reported on line 22. 

See Final Regulations - TD9918, for examples of allowable excess deductions on termination of an estate or trust. 

Note. The regulations are applicable for tax years beginning after 2017. 

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. 

 

END OF BOX 11, CODE A INSTRUCTIONS

 

Turbo Tax will not let me enter the Box 11, Code A amount into Schedule 1 at this time.  I expect this is one of the areas where Intuit still has work to do since the 2020 instructions for Schedule K-1 are dated Dec. 09, 2020. 

Again, thank you for your reply.