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Deductions & credits
Q. OK so the loss has to follow the distribution directive by the estate. Correct?
A. Yes. But, that answer assumes the actual distribution follows the directive. I'm of the opinion that the deductible capital loss follows the money. Example: 2 siblings are to get 50% each of the proceeds. But they decide to split the proceeds 75-25. One reports 75% of the loss and the other 25%.
Q. Do you know of a tax court case where one beneficiary (the executor) by agreement with the other beneficiaries distributed the capital loss (caused by stepped up basis) in a way that was different then the estate directive?
A. No. But, as others have said this is not legal forum.
‎January 5, 2022
5:15 AM