NIIT and K1 from Estate with only Capital Loss

[user17709205242]

OK so I have received a K1 from fathers ESTATE that has an amount in 11D  and the same amount in 14H.  THe K1 is the final year and there was no income just the loss from sale of house.  

So now when doing my 1040 I see TT deducting the 11D amount from capital gains but all of a sudden I am thrown into the NIIT category and sadly this year I am over the 250K on other incestment income.  So TT is taking MAGI minus 250K and calculating tax.   All seems correct calculations BUT I had no income from estate and only capital loss caryover.  Is this right am I paying tax on that K1 loss as well as my other investment income.  TT is putting the K1 loss on line 7 of 8960 as postive number and so it is bumping my  total investment income back up.   I hope I explained this OK

Thanks

[M-MTax]

Form 8960 instructions:

If the amount reported in box 14, code H, of Schedule K-1 (Form 1041) is a positive number, enter it on Form 8960, line 7, and increase your MAGI on Form 8960, line 13 (or Form 8960, line 19a), by the same amount. If the amount reported in box 14, code H, of Schedule K-1 (Form 1041) is a negative number, and the trust has indicated some (or all) of the adjustment also requires a MAGI adjustment, enter it on Form 8960, line 7, and make the applicable increase or decrease to your MAGI on Form 8960, line 13 (or Form 8960, line 19a), as necessary.

[user17709205242]

Thank you for the replay M-mtax.  I am the PR for the Estate that the loss came from I used TT Business to do the final and only 1041 for my fathers estate.  TT Business put the value in 11D which was the long term loss from estate.  THere was no income in estate just the loss.  TT Business also put the same amount positive in 14H.  

WHen doing my 1040 in TT it did the correct thing on Sched D and used loss to offset Capital gains just fine.  But the MAGI for the year was north of 350K so that invokes Form 8960 ( nothing I have ever dealt with before since income was not that high)  So 8960 subtracts 250k from MAGI and then it brought in the 14H amount (positive) and added it to the 350k-250k number then does a 3.8% on that number which is added to my huge tax bill.  it kind of nullifies the advantage of the capital loss on Sched D.  Is this the way it is suppose to work.  I could not force 14H negative or value on 8960 negative.  

This is a little corner of taxes I never knew existed.

Thanks

[user17709205242]

OK I apologize to everyone that read this I figured out what was going on.  My bad it appears to be fine and not being penalized for K1 loss.

Thanks

Dennis