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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Client died Jan 2009. Had many fund investments that when

Resolved Question:

Client died Jan 2009. Had many fund investments that when sold by his trustee (Filing Form 1041), there was an $80,000 + capital loss. There are three beneficiaries (sons - wife had pre-deceased him).
Do the Capital Losses flow through to the beneficiaries on a K1 from the Form 1041?
Submitted: 7 years ago.
Category: Tax
Expert:  RD replied 7 years ago.
Has the estate been settled? IS this the final Form 1041 being filed?
Customer: replied 7 years ago.

The 1041 will be the final one. Opened and settled in 2009. Estate has been settled.



Expert:  RD replied 7 years ago.
The capital losses will flow to the beneficiaries.

A capital loss within the trust usually stays with the trust until the final return and passed through to the beneficiaries once a final return is filed.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

RD and other Tax Specialists are ready to help you
Customer: replied 7 years ago.

Thanks. Just wanted confirmation of what I had found.



Expert:  RD replied 7 years ago.
Thanks for using Just Answer