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kikka59
Level 1

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

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).

3 Replies
Anonymous
Not applicable

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

nope the exemption is an addback. 

Anonymous
Not applicable

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

 
tagteam
Level 15

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

I agree 100% with @Anonymous 

 

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

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