Thanks for the advice. In this case, the Trust had no income, expenses or capital gains. Therefore Schedule B, line 7 (DNI) is zero. The only entries on Schedule B would be (3000) on line 1 and 3000 on line 6, which net to show a zero DNI and, according to the Capital Loss Carry Forward worksheet, does not reduce the prior year's capital loss carry forward available to beneficiaries in this final year of the Trust. There are no other entries in Schedule B. The only places the prior year's capital loss carry forward shows up is on Schedule D and the K1's for beneficiaries. I hope this is correct.
