In the final year of an estate/trust, unused net capital losses can be passed through to the beneficiaries. As a result, the beneficiaries may carry forward their pro-rata share of these losses during their lifetimes.
Capital loss carryovers and Net Operating Loss (NOL) carryovers are reported to the beneficiaries on the final Schedule K-1 (Form 1041). These Final Year Deductions are reported in Box 11 on Schedule K-1 (Form 1041).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
