Assuming that "you" above refers to Slimbo's post, here's what I did:
1) Used the carryover calculation worksheet for form 1040 to reproduce the example in the Fairmark piece (i.e., using the data in the example). Result: the same as what the author of the piece came up with.
2) Used actual data for a form 1041 (fiduciary of trust or estate) with the form 1041 carryover calculation sheet. There is no distribution to beneficiaries. Even though -- as in the Fairmark example -- the capital loss carryover from the previous year was not "needed" (i.e., with the exemption, income was negative), the carryover calculation "used" some of the carryover -- NOT the result with Fairmark example.
In both 1) and 2), the tax calculation incorporated the capital loss.
So . . . I infer that, in the case of an "un-needed" capital loss carryover from the prior year, things work differently in the case of an individual vs. a trust with respect to what is or is not carried forward to the next year.
