topic Next year can I carry forward negative $100 taxable income line 23 on Form 1041? in Deductions & credits

Next year can I carry forward negative $100 taxable income line 23 on Form 1041?

kikka59 — Fri, 10 Apr 2020 19:34:43 GMT

I prepare a 1041 for a trust and distribute all the income each year to the beneficiary. Last year, the 1041 (2018 tax return) showed -$100 taxable income. I believe that was because of the $100 exemption. Can I carry that forward as a net operating loss on my 2019 form 1041 return? If so, where do I account for that loss? I have the same situation for tax year 2019 on line 21 (exemption $100) and line 23 (taxable income -$100).

Re: Next year can I carry forward negative $100 taxable income line 23 on Form 1041?

Anonymous — Fri, 10 Apr 2020 20:39:39 GMT

nope the exemption is an addback.

Re: Next year can I carry forward negative $100 taxable income line 23 on Form 1041?

Anonymous_ — Fri, 10 Apr 2020 21:03:13 GMT

I agree 100% with @Anonymous

See https://www.irs.gov/instructions/i1041#idm140366309584176