Good info. Now I wonder if date of loss can be the date of conviction, which was in 2016. Discovery of theft was 2014. I guess a legal opinion would be in order. It's interesting that IRS does not have any documentation regarding trust assets for a 1041 return, but for a 1120 corporate return there is a balance sheet. Considering that the trust will terminate in 2026 when a note becomes due, it seems prudent to make the loss amount large enough to cover anticipated income. The red flag for a $60,000 loss carried forward should be much smaller than flashing the million dollar amount.
