Again, I need more clarity - sorry.
Are you saying that the amount that must be used in the first year (in order to be able to carry anything forward) is determined by the lesser of $3,000 and whatever income they happen to have in that year, even if that income is in a very low tax bracket (and they would prefer to use the first bite to offset income in a later year when they expect to be in a higher bracket)?
Regarding the state return, are you referring to something that the beneficiary may have to file, but not anything that the estate needs to supply to them? I am assuming that the beneficiary would already be filing a state tax return (unless in a no income tax state like Florida).
Thanks.
