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tdubsound
New Member

Estates and Trusts

I have a final K-1 from an estate with some capital gains and a final year deduction. When I enter these in Turbo tax, my taxes do not increase when I enter the capital gains, and the taxes did not decrease when I entered the final year deductions. Where should these show up? Should I override, or have I entered these incorrectly in my K-1?

5 Replies
Critter-3
Level 15

Estates and Trusts

That is not unusual and do NOT make any changes or overrides.  If you have not entered in all your information yet then that may be part of the reason you didn't see a change.   AND the cap gains could be taxed at zero % if you have not entered any other income yet ( see the cap gain worksheet)   AND  the deductions go on a Sch A but only if you have enough to itemize deductions (review that section when you get to it).  

NCperson
Level 15

Estates and Trusts

if you look closely at the K-1, it should tell you which lines they trace to on the Form 1040, but as stated by @Critter-3 , I wouldn't be concerned until you have added all your other income when Jan/ Feb rolls around. 

 

 

tdubsound
New Member

Estates and Trusts

Upon further review, I found that there was a sizable carry forward of a capital gains loss. So the small perturbations I made, weren't enough. But I did find the taxes did increase if I changed the long term capital gains values enough. 

 

I'm going to experiment with the losses from the 1041 line 11(A) to see if changing those also changes the tax quantities.

tdubsound
New Member

Estates and Trusts

Also, this is to file an amended return for 2019

NCperson
Level 15

Estates and Trusts

if there is a loss carry forward on the K-1, that should net against any capital gains YOU had on your 2019 tax return.  If the net of the K-1 capital loss and your capital gains exceeds $3000, then you will be able to reduce your ordinary income by $3,000 and carry forward what every loss is left and repeat that process each year into the future until the losses are consumed.

 

As this is a final K-1 from an estate, those capital losses should be for assets sold after the date of death at a loss from their value as of the date of death.   If the losses occurred prior to the date of death, then they should have disappeared as part of the 'step up' process. 

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