Trust deduction for theft loss during covid

[Anonymous_]

1) With what you have posted concerning the forms, schedules, and statements in your return, you are infinitely better off printing and mailing the return (ensure that you get proof of mailing and delivery).

2) The description line most likely only contains details that would be sent during e-file. If you print and mail, you will need to truncate the descriptions.

[ron6612]

So, are you saying that it is perfectly alright to include the explanation form if file by mail even though it says keep for your records?

And, I need to summarize the description for each item no matter if the return was done via eFile or printed out and mailed?  In either case the description would not be presented properly?

[Anonymous_]

No, you should be able to use one of the forms that exist in Forms Mode (such as the Additional Information or Miscellaneous Statement) as your explanatory form. Print that out and then mail it with your return.

I am not certain but I believe the e-file format will allow more characters while the print out will be limited due to format and space considerations.

[ron6612]

Could not find a miscellaneous statement to use under forms mode. The explanation information is entered under elections in the other return information during interview process and auto generates the Estate and Trust Summary previously noted.  

[Anonymous_]

The miscellaneous statement form is in the program (look at the bottom of the list in Forms Mode), but the format of the Additional Information statement in the program is probably better for your purposes.

[ron6612]

The only item that I see on the left hand side is IRC elections and on the bottom of the form I have entered the explanations.  This creates the form that says do no include with return, save for your records.  This is what I am trying to capture:

Deductions That May Be Allowable for Estate Tax Purposes Administration expenses and casualty and theft losses deductible on Form 706 may be deducted, to the extent otherwise deductible for income tax purposes, on Form 1041 if the fiduciary files a statement waiving the right to deduct the expenses and losses on Form 706. The statement must be filed before the expiration of the statutory period of limitations for the tax year the deduction is claimed. See Pub. 559 for more information.

[Anonymous_]

[ron6612]

I did what you said and see how to enter information into the miscellaneous statement.  However, when I did that and previewed the output only the Elections Summary (which said do not include with return) was printed and not the Miscellaneous Statement.  I did it for all forms to be filed plus all forms and supporting schedules.

[Anonymous_]

Try using the Print button at the bottom of the screen while you have the form open in Forms Mode.

[ron6612]

Is it possible that the 2020 updates will fix the workarounds that are required to get the return properly generated?  It’s very complicated when the basic interview process does not provide for the required inputs and outputs. Being able to electronically file the return with the required information would also be a plus. 

[Anonymous_]

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@ron6612 wrote:

Is it possible that the 2020 updates will fix the workarounds that are required to get the return properly generated? 

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No, there is no possibility of that happening because the program is designed for very simple returns.

Any complicating factors require guidance (and return preparation) from a tax professional. 

With respect to TurboTax Business, anything other than a simple and straightforward return typically requires the use of Forms Mode (like the process in which you are engaged). 

[ron6612]

Upon further review the Miscellaneous Statement does print along with the return.  I was able to shorten the description of the stolen jewelry items and the adjusted description also does print.  I wanted to efile to make things easier.  Doesn't that make sense or is there another reason to print and mail?  I've also got two K1's to distribute.

[Anonymous_]

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@ron6612 wrote:

....I wanted to efile to make things easier.  Doesn't that make sense or is there another reason to print and mail? 

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Of course that makes sense, but the rationale behind printing and mailing is you are 100% certain exactly what the IRS will be receiving (you can look through all of the forms and ensure everything you want to include is, in fact, included in the mailing).

If you e-file, you simply cannot be certain whether or not certain statements will be included, such as the explanatory statement re Form 706 (as well as any other statement you generate).

[ron6612]

I just printed out the 1041 and checked option for all forms required for filing.  However, Other Deductions Statement, Form 1041, Page 1, Line 15a did not print.  This needs to be generated when eFile?  Help, please!

[Anonymous_]

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@ron6612 wrote:

I just printed out the 1041 and checked option for all forms required for filing.  However, Other Deductions Statement, Form 1041, Page 1, Line 15a did not print.  This needs to be generated when eFile?  

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The form that gets printed is named something like "Other deductions not subject to 2%". 

Regardless, the forms and software are both clearly not ready for filing at this time so you will need to wait for the developers to update the program and forms.