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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4009
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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I Have a question about filing a 1041 estate return with a

Resolved Question:

I Have a question about filing a 1041 estate return with a schedule C loss.
As the estate will remain open through at least 2015, I understand that
I cannot distribute this loss to the beneficiaries. How do I report this
loss on the form? I have placed in on line 17, but am not sure what
do after that. Do I report it on line 22 as a loss.

And do I fill out schedule B, but not K-1's?

Also have a small qualified dividend to report. Does that small income
amount get passed through now or is it combined with the loss?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Lane :

If line 22 (figured without regard to the minimum taxable income rule stated above) is a loss, the estate or trust may have an NOL. Do not include the deductions claimed on lines 13, 18, and 20 when figuring the amount of the NOL.

Lane :

ou must carry forward the loss to next year and, if, in the final year of the trust there is a capital loss, you pass it on to the beneficiaries on the Sch K-1. Fill out the Capital loss carry-over worksheet to figure the carryover loss to next year

Lane :

But, you're right no K-1s

Lane :

You must carry forward the loss to next year and, if, in the final year of the trust there is a capital loss, you pass it on to the beneficiaries on the Sch K-1

Customer:

Currently the loss is a schedule C.

Customer:

How do I carry the loss forward?

Lane :

THere's a worksheet, p 37 I think?

Lane :

Let me look

Customer:

Also second part of my question, do I distribute the dividend now?

Lane :

Sorry, page 8 of the instructions for 1041, but your software should generate that

Customer:

I am not using software. I have a very limited budget so doing it manually.

Lane :

K, and yes, the dividends can be distributed and THAT will call for K-1

Customer:

The IRS agent said I did not need to distribute the dividend and that I should attach

Customer:

the NOL form declined a loss carry back. Do you concur?

Lane :

That's right you do not HAVE to, the trust will pay the tax, however ... and on the NOL...

Lane :

Yep businesses can

Customer:

Thanks

Lane :

You're welcome

Lane :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Customer:

How do I recontact you?

Customer:

And may I ask one more question with out being charged now?

Customer:

I mean of course extra charges.

Lane :

Sure, no problem . and on future questions say "FOR LANE ONLY," at the beginning of the new questions and I'll get an alert

Customer:

OK My question is In 2013, I sold my deceased husband's dental practice goodwill

Customer:

and as he was a schedule C unincorporated filer, will that income be

Customer:

capital gains or regular income as reported?

Lane :

was the good will, generic goodwill or were there client lists, etc?

Customer:

I actually sold the dental charts and access to these patients.

Lane :

OK just a sec...

Lane :

It's capital gain ... This is still a decent result for Dr. Buyer, because what is paid for goodwill will be deductible, though over a relatively slow 15 years. Gain on the sale of the tangible practice assets is typically taxed to Dr. Seller at the higher ordinary income tax rates, and deductible to Dr. Buyer much more quickly.

Lane :

Charts and patient access is good will/capital gain

Customer:

That is very helpful.

Customer:

Thank you. That is all for now. signing off.

Lane :

You're very welcome... Again, I would appreiate a rating (HOWEVER, if you'll come back to TIS thread: http://www.justanswer.com/tax/804ob-question-filing-1041-estate-return.html it will be treated as the same question

Lane :

by the the links will always stay active here, if you need to come back for reference ... you can simply bookmark the page, for that

Customer:

OK, I will give you an excellent rating.

Lane :

Thanks

Lane :

Lane

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4009
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 3 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.

Thanks for the Rating Susan.

Again, if you would like to work with ME again here, just say "FOR LANE ONLY,..." at the beginning of another question.

Thanks again,

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4009
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 3 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.

Thanks so much!

Let me know how I can help, as you get further in...

Lane

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