K-1 (1041) Can I apply a 1099 capital gains loss to offset tax on K-1

[cmull20]

I received a K-1 1041 from a trust which my wife was a part of an inheritance.  It's showing the following:

2a -     $114

5 -      $73,378

14-E   $73,492

14-H   -$73,378

We have a Capital Gains Loss  (1099) from a previous year that exceeds this amount, however TurboTax is showing that we owe money.

Am I not able to apply the capital gains loss carry over, from the 1099, to this amount on the K-1 to reduce the tax?

I went from a $2,000 refund to owing ~$14,000

[RobertB4444]

Unfortunately the K-1 you received lists the income as "Non-business Income" and not as Capital Gains which would be entered in box 3 or 4.  If the income had been entered there you could have used your capital loss against it.

@cmull20 

[dmertz]

These numbers suggest that the $73,378 could be taxable income from a retirement plan and it is not income from a capital investment.