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I have a Schedule K1 as a beneficiary of my mother's Trust when she passed away. There is a loss shown on it with final year deductions listed in box 11 (codes B and D). From what I understand, these losses are supposed to carry over to my Schedule A but aren't. My sister used a different tax product and the tax program she used transferred this over to "Other itemized deductions" on Schedule A. Is there something I need to do to get that to transfer over?
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Yes, per the instructions that appear after entering the amounts for Box 11B, you will need to enter the expenses in the corresponding topic in TurboTax. For example, the statement accompanying Schedule K-1 might indicate the "non-miscellaneous" deduction was property tax. Just search the property tax topic in TurboTax and enter the amount in that topic.
The loss carryover from Box 11D will appear on Schedule D Line 12.
This still doesn't make sense - " enter the expenses in the corresponding topic" - the amount on the K1 is excess deductions that includes mortgage interest. I'm supposed to enter the mortgage interest in the mortgage interest topic as if I paid them? All of my siblings have had different tax programs and preparers do their taxes and this value was entered on in the Other Itemized Deduction section of Sch A (line 16). I tried just overriding this value but TurboTax refuses to transmit. I'm about to ditch TurboTax and use a different program to get this done.
If you wish to report this activity as an other item on Schedule A, you would enter this in TurboTax under Deductions & Credits >> Other Deductions >> Other Deductible Expenses.
Continue to the page "Did you have any of these other expenses?" While there is not a specific "box" for mortgage interest, you may enter this under the Estate Tax line. Entries here will be carried over to Schedule A and will be included in the calculation for Itemized Deductions. Note that if you don't qualify to itemize, this activity will not affect your taxable income.
Thanks! It looks like that may work. I'll remove the override I had done and use this method instead and see if it lets me efile now - but it looks promising!
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