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How to resolve Lacerte diagnostic ref. 25547 for final return excess deductions

by Lacerte Tax 2023 Updated 6 months ago

This diagnostic may be generated due to excess deductions or an NOL that hasn't been distributed in the final year of the fiduciary.

The diagnostic states:

  • "This is a FINAL return with either excess deductions on termination or an NOL that has not been allocated to any remainderman. To properly distribute these items, make entries in the 'Ordinary' column for 'Other (Schedule B, line 10)' on Screen 7.1, Distribution Percentages." (Ref #25547)

How to remove the diagnostic

  1. Go to Screen 7, 1041 Distributions
  2. Click on Distribution Percentages in the dropdown list
  3. In the grid, enter distribution percentages in the Required (Sch. B, ln 9) columns and the Other (Sch. B, ln 10) columns (for final year)
    • Only fill in the columns for Other (Sch. B, ln 10) in a final year
Lacerte Tax

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