If we were talking about a 1040, a $3,000 loss carryover would reduce the taxable income and the capital loss carryover worksheet would calculate the new loss carryovers next year. Here we're talking about a 1041 where the trust has short and long term capital losses being carried over from last year. If the $3,000 loss carryover isn't being used to reduce taxable income now, what effect does it have on the 1041 and how does it affect the things going forward? You say it will be carried forward by the program. Where is it being carried forward to?
