If there is no income on estate this year, can I still take the 600 exemption and show a loss?

[calcal0]

For the year 2016, on 1041 estate income tax return there is only $3.00 of interest income and no other deductions.  Can I still deduct the $600.00 exemption for the estate and show a loss of $597.00.  Then can I apply this loss to the remainder in the NOL?

[Anonymous_ · Accepted solution]

"Can I still deduct the $600.00 exemption for the estate and show a loss of $597.00. "

No, you cannot. The estate's exemption is not taken into account when calculating an NOL. 

See https://www.irs.gov/instructions/i1041/ch02.html#d0e3851

Net operating loss (NOL).   If line 22 (figured without regard to the minimum taxable income rule stated above) is a loss, the estate or trust may have an NOL. Don't include the deductions claimed on lines 13, 18, and 20 when figuring the amount of the NOL.