I am Trustee of a Trust where the parent has died in 2008. In the Trust is a small rental property.
I had a 2012 NOL for the rental in the amount of about $7000, primarily for refurbishing after a bad renter. I have completed a form 1045, and carried the loss back to 2010 and 2011. There is still $2200 to carry forward to 2013.
The question is this: For the $2200 NOL remaining on Schedule B of form 1045, where does it go next? I assume it has to be carried forward somewhere.
Publication 536 (page 8) indicates it goes on Form 1041, "with other deductions
not subject to the 2% limit (line 15a for 2012)". If I do this, this is then carried to line 16, and then subtracted from my original NOL ($7000) and results in a line 17 value of ($7000)-($2200) = ($9200). This seems to make no sense, as I end up adding the carryover to the ORIGINAL NOL amount... and then it just stops on line 22.
I assume I need to document this somewhere CORRECTLY, or I'll lose it.