I received a 2023 Schedule K-1 with a value greater than 3,000 in Box 11 with Code D. TurboTax uses 3,000 of the amount reported in my 2023 Schedule K-1 in determining my 2023 taxes.
Isn’t the first year that the amount reported in a 2023 Schedule K-1, Box 11, Code D 2024 rather than 2023?
A Schedule K-1 must be reported on the individual's tax return for the year that includes the end date of the partnership's tax year. If the Schedule K-1 shows a tax-year end date in 2023, it goes on the individual's 2023 tax return.
Presumably this is a Schedule K-1 (Form 1065) from a partnership [Edit: or a Schedule K-1 (Form 1041) from a trust]. A capital loss carryover is applied first to capital gains, then what remains up to $3,000 can be applied to ordinary income. Anything that remains of the capital loss after that carries forward to the next tax year.
A Schedule K-1 must be reported on the individual's tax return for the year that includes the end date of the partnership's tax year. If the Schedule K-1 shows a tax-year end date in 2023, it goes on the individual's 2023 tax return.
Presumably this is a Schedule K-1 (Form 1065) from a partnership [Edit: or a Schedule K-1 (Form 1041) from a trust]. A capital loss carryover is applied first to capital gains, then what remains up to $3,000 can be applied to ordinary income. Anything that remains of the capital loss after that carries forward to the next tax year.
I should have been more specific. This schedule k-1 is from a trust filing its first and final year. The trust took it’s 3,000 limit on capital losses and distributed the excess balance of the loss to the beneficiaries via schedule k-1, block 11, code d.
My previous reply also applies to a Schedule K-1 (Form 1041) from a trust.
I have a similar situation;, an estate closed and I received a K1 (Form 1041) and Box 11 is populated with a D.
Does anyone know where and how I enter this info into Turbotax?
Thanks!
When you enter the K-1 into TurboTax there should be a box for 11 D. If you enter it there the capital loss should carry over to schedule D.