Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover
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Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

 
6 Replies
Level 15

Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

Sorry for your loss. I assume you are working on the final personal return. Has an estate for the deceased been established and if so, are you the administrator of that estate?
New Member

Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

My mother in law only had one child, my husband, and he is the administrator of the estate.  We are doing his mom's final return.
Level 15

Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

The capital loss carry forward ceases on death. So, the entire $47,000 is lost.

See https://ttlc.intuit.com/questions/2299802-can-long-term-capital-loss-from-a-deceased-person-carry-ov...

Level 15

Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

Hal-Al, I've been researching, and from what I see, it appears that if an estate return will be done after the final personal return, then the capital loss carryover transfers to the estate, and any remaining loss is not lost until the tax year the estate is distributed and dissolved. Only problem is, while I find information on estates carrying forward losses, I can't find anything on the transfer of those losses into the estate.
Level 15

Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

I added a reference to the answer.  From a practical matter, an estate would be unable to use the loss carry forward, as all capital assets "step up" in basis.
Level 15

Parent died, filing final tax return,and capital loss is $50,000 how do I claim this on her tax return & since there is a $3000 cap per year, will there be a carryover

Ah yes! I wasn't thinking along the terms of the estate "inherited" the deceased's assets. I've never seen it referred to in that manner. But that's exactly what it is!
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