I have 5 different lines in the Statement supporting the K-1 Box 11B amount provided from my Mother-in-Law's estate:
1) Adjusted total income from Form 1041, Line 17 (this is a loss/negative number)
2) Add: Net Operating Loss (a positive number)
3) Add: Charitable Deduction (a positive number)
4) Add: Net Capital Loss (a positive number).
The sum of these 4 figures results in a negative number, labeled "Allowable Excess Deductions on Termination"
5) Less: Portion Attributable to Section 67(e) Expenses (a positive number that further reduces the Allowable Excess Deductions)
Then the amount is divided by two beneficiaries to get the Beneficiary's Portion, the amount shown in Box 11B.
How/where should these various amounts be reflected in our 1040 return? I will have to submit an Amended Return, as the K-1 was received after we had already filed.
