How do I enter Form K-1 1041 Box 11B, allowable excess deductions on termination of the trust?

[mimi01]

I have 5 different lines in the Statement supporting the K-1 Box 11B amount provided from my Mother-in-Law's estate:

1) Adjusted total income from Form 1041, Line 17 (this is a loss/negative number)

2) Add: Net Operating Loss (a positive number)

3) Add: Charitable Deduction (a positive number)

4) Add: Net Capital Loss (a positive number).

The sum of these 4 figures results in a negative number, labeled "Allowable Excess Deductions on Termination"

5) Less: Portion Attributable to Section 67(e) Expenses (a positive number that further reduces the Allowable Excess Deductions)

Then the amount is divided by two beneficiaries to get the Beneficiary's Portion, the amount shown in Box 11B.

How/where should these various amounts be reflected in our 1040 return?  I will have to submit an Amended Return, as the K-1 was received after we had already filed.

[Anonymous_]

You might want to contact the trustee (or responsible party) for clarification.

Final year deductions are, indeed, entered on Line 11 of your K-1 but they are separated by codes.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink100011524

For example, an NOL would appear on Line 11 with an E and F code.

[mimi01]

@Anonymous_

Thanks--I'm referring only to the specific amount (and associated statement) shown in Box 11B.  There are separate/different amounts included in Boxes 11E and 11F.

[Anonymous_]

Are there figures on Line 11 with codes A, C, and D?

The 67(e) expenses should be on Line 11 with an A code while the capital loss carryovers should be on Line 11 with a C or D code (or both).

[mimi01]

@Anonymous_ 

There is a figure in Box 11C but not 11D.

Would it be an issue if I "re-categorize" the 67(e) amount into 11A and the Net Capital Loss amount as 11D?  What do I do with the other 11B figures:  Adjusted Total Income, Net Operating Loss, and Charitable Deduction amounts--where should these be reflected in the 1040?

[Anonymous_]

If you "re-categorize", you could very well draw scrutiny if the IRS does not have the submitted K-1 with figures with those codes (which would obviously wind up on different lines (and schedules) on your return).

You should really contact the trustee for clarification.