Estate Initial Return Form 1041 and Schedules K-1
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Estate Initial Return Form 1041 and Schedules K-1

I'm the administrator and an heir for an estate where the decedent was a PA state resident. I have the following questions:

  • On Form 1041 Line 23 Taxable Income, it states “If a loss, see instructions”. I read the Instructions for Form 1041 Page 27 where it discusses “Minimum taxable income,” “NOL”, and “Excess deductions on termination”. Is it possible to distribute estate assets (cash) but still pass through an NOL and/or excess deductions to beneficiaries when the final tax returns are filed next tax year (2020) if I anticipate the estate will be closed by then?
  • Since the estate did not make any distributions to its beneficiaries in 2019, I assumed I did not need to file Schedules K-1, is that correct?
  • Or should the 2019 estate loss pass through to the beneficiaries via Schedules K-1? If so, could you please explain how to pass through the loss since the software doesn’t seem to provide much guidance. I used Step-by-Step Mode but I’m wondering if I’m supposed to enter more information using Forms Mode.
  • Is there a way to attach (redacted) documents to community posts and/or private messages? The TurboTax Community Basics displayed a screenshot with the "Choose File" option but I didn't see that option on my own:
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