topic Can I enter information from a K1 description of a net capital loss? in Business & farm

Can I enter information from a K1 description of a net capital loss?

anpierson8822 — Sun, 21 Mar 2021 14:38:51 GMT

Where do I enter information on K1, Box 11, Code B Excess Deductions Non-Miscellaneous Expenses?

Re: Can I enter information from a K1 description of a net capital loss?

Anonymous_ — Sun, 21 Mar 2021 14:46:46 GMT

TurboTax does not really do anything with a figure entered from Line 11B.

You should contact the trustee (or executor/administrator) for the exact nature of the expense.

Re: Can I enter information from a K1 description of a net capital loss?

anpierson8822 — Sun, 21 Mar 2021 14:55:21 GMT

I need further information. I have a federal statement that accompanies the K1 form that states the following:

Schedule K1 Box 11 Code B - Excess Deductions: Non-Miscellaneous Expenses

Description

Adjusted Total Income from Form 1041, Line 17

Add: Net Capital Loss

Allowable Excess Deductions on Termination

Less: Portion Attributable to Section 67(e) Expenses

Allowable Excess Deductions - Code B

Beneficiary's Portion

Where do I enter this information? The Turbo Tax program asked for this information, but after following the 'tools' 'capital' 'capital loss' instructions did not lead me to a place to enter this information. Please advise.

Re: Can I enter information from a K1 description of a net capital loss?

Anonymous_ — Sun, 21 Mar 2021 15:14:59 GMT

@anpierson8822 wrote:

I need further information. I have a federal statement that accompanies the K1 form that states the following:........Schedule K1 Box 11 Code B - Excess Deductions: Non-Miscellaneous Expenses

Description..........Add: Net Capital Loss..........Allowable Excess Deductions on Termination.........Less: Portion Attributable to Section 67(e) Expenses

Allowable Excess Deductions - Code B

This is why you need to contact the trustee or administrator.

Section 67(e) expenses should be reported on Line 11 with an A code (assuming this is a final return for the trust or estate).

Capital loss carryovers should be reported on Line 11 with a C code (short-term) or with a D code (long-term).

The Line 11 codes for the 2020 K-1 (1041) have changed (slightly) from the 2019 schedule so there has been some confusion.

Again, contact the trustee or administrator for clarification.

Re: Can I enter information from a K1 description of a net capital loss?

jaelbiz11 — Sat, 09 Apr 2022 20:37:19 GMT

From IRS K-1 1041 instructions for Box 11, Code B—Excess Deductions on Termination:
Non-Miscellaneous Itemized Deductions If this is the final return of the estate or trust, and there are excess deductions on termination that are non-miscellaneous itemized deductions reported to you as a beneficiary, you may deduct the excess deductions shown in box 11, code B, on the applicable line on Schedule A (Form 1040). The fiduciary will provide you with a statement of allowable deductions.