@anpierson8822 wrote:
I need further information. I have a federal statement that accompanies the K1 form that states the following:........Schedule K1 Box 11 Code B - Excess Deductions: Non-Miscellaneous Expenses
Description..........Add: Net Capital Loss..........Allowable Excess Deductions on Termination.........Less: Portion Attributable to Section 67(e) Expenses
Allowable Excess Deductions - Code B
This is why you need to contact the trustee or administrator.
Section 67(e) expenses should be reported on Line 11 with an A code (assuming this is a final return for the trust or estate).
Capital loss carryovers should be reported on Line 11 with a C code (short-term) or with a D code (long-term).
The Line 11 codes for the 2020 K-1 (1041) have changed (slightly) from the 2019 schedule so there has been some confusion.
Again, contact the trustee or administrator for clarification.
