Schedule K-1, Box 11, Code D

[rrcbob]

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?

[dmertz · Accepted solution]

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.

[rrcbob]

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.

[dmertz]

My previous reply also applies to a Schedule K-1 (Form 1041) from a trust.

[ppc06070607]

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!

[RobertB4444]

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.

@ppc06070607