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Level 6
April 1, 2026
Question

FINAL YEAR TRUST WITH CAPITAL LOSS

  • April 1, 2026
  • 1 reply
  • 0 views

THE TRUST HAD A CARRY OVER LTCL FROM 2024 OF $152K.  SOME OF THE LOSS WAS USED UP THE REMAINING IS SHOWING UP ON THE 1041 LINE 23.  CHECKED THE BOX TO ALLOCATE TO BENEFICIARIES.  THE LOSS IS ALLOCATION EXCEPT FOR $3K WHICH IS SHOWING NEGATIVE ON LINE 4 OF THE 1041 WHICH CREATES A $3K CAPITAL LOSS ON LINE 23.  WHY WOULD THE TRUST GET THE $3K LOSS AND NOT ALLOCATE AS WITH THE REMAINING LOSSES WHICH FLOW TO THE BENEFICIARIES IN BOX 11 CODE D

1 reply

Just-Lisa-Now-
Intuit Community Champion
April 1, 2026

Are you sure the trust is using that 3000, and its not included on the K-1?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
dsocpaAuthor
Level 6
April 2, 2026

Thank you Lisa.  You hit the nail on the head.  The $3k is the allowable LTCG loss.  Since 2025 was the final year the allowable LTCG loss flowed to line 4 of the 1041.  The loss carryover to the beneficiaries remained unchanged.  So I think it's good.  Maybe not the most correct presentation but the numbers proof out to the investment statement.