- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If the value on Form 1041, Line 22 is a negative number, how do I handle that? The deduction for this complex trust -- property tax -- was larger than the income . . .
. . . which was interest from a regular bank account.
Is this a Net Operating Loss?
Is there anything I need to do apart from entering the value on line 22 and $0 for tax due?
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If the value on Form 1041, Line 22 is a negative number, how do I handle that? The deduction for this complex trust -- property tax -- was larger than the income . . .
"
Is this a Net Operating Loss?"
Most likely there is no net operating loss because a net operating loss cannot be created when nonbusiness deductions exceed nonbusiness income. See https://www.irs.gov/publications/p536/ar02.html#en_US_2016_publink1000177329
Also, the exemption is not included when figuring an NOL. See https://www.irs.gov/instructions/i1041/ch02.html#d0e3851
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If the value on Form 1041, Line 22 is a negative number, how do I handle that? The deduction for this complex trust -- property tax -- was larger than the income . . .
"
Is this a Net Operating Loss?"
Most likely there is no net operating loss because a net operating loss cannot be created when nonbusiness deductions exceed nonbusiness income. See https://www.irs.gov/publications/p536/ar02.html#en_US_2016_publink1000177329
Also, the exemption is not included when figuring an NOL. See https://www.irs.gov/instructions/i1041/ch02.html#d0e3851
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If the value on Form 1041, Line 22 is a negative number, how do I handle that? The deduction for this complex trust -- property tax -- was larger than the income . . .
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If the value on Form 1041, Line 22 is a negative number, how do I handle that? The deduction for this complex trust -- property tax -- was larger than the income . . .
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
If the value on Form 1041, Line 22 is a negative number, how do I handle that? The deduction for this complex trust -- property tax -- was larger than the income . . .
Still have questions?
Or browse the Forums