Filing final return for a client who died in 2018. Capital loss carryovers shouldn't be subject to the 3K limit. How can I use more that limit? PS not allowing me.

[costataxservice]

According to the IRS, capital losses can be used on the final tax return.  Then lost forever.  How do I make Proseries Basic let me go beyond the limit?  I've already indicated the date of death.  

[garman22 · Accepted solution]

They expire after death. Where is your cite?

[Just-Lisa-Now-]

isn't it on a final trust or estate return the losses can be used and distributed to the beneficiaries on the final K1?

[garman22]

I agree with you re: trust/estates. The remaining losses are released.

[IRonMaN]

"According to the IRS, capital losses can be used on the final tax return"

Read the not so fine print - 1041 vs 1040.

[Just-Lisa-Now-]

@costataxservice   I think you're missing an important detail....the type of return its referring to.

[TaxGuyBill]

Isn't that Date of Death only on the personal tax return?  If so, he is talking about the 1040, and it is limited to $3000.

[costataxservice]

Yes it is a 1040.  I can't find anything that says that it is still limited.  Sounds pretty unreasonable if still subject to 3000.

[Just-Lisa-Now-]

Its only on a fiduciary return (1041) that the losses can flow through to the beneficiaries in the final year.   

It doesn't work that way with individual returns (1040).

IRS rules aren't generally known for being reasonable.

[IRonMaN]

Dying also sounds pretty unreasonable to me, but it is still going to happen to all of us - eventually :cry: