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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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We prepared a Form 1041, for a Trust for our client for the

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We prepared a Form 1041, for a Trust for our client for the year ended December 31, 2011, which indicated a loss of $77,453; however, the Schedule K-1 for 2011 reflected zero. For the year ended December 31, 2012, we have income of $57,678. Is there a way that the loss from 2011 can be offset against the income for 2012? Can this be reported on the 1041 for 2012 to obtain the offset?? Please advise.

MyVirtualCPA :

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MyVirtualCPA :

No, you cannot net the prior year loss with the current year income. You will have income for 2012.

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