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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I just received a K-1 (9/3/2010) from 2009 from my Grandmothers

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I just received a K-1 (9/3/2010) from 2009 from my Grandmother's estate. It is reporting a capital loss of over $3,000. I already filed our 2009 return that maxed out the $3,000 capital loss deduction from another estate K-1 (it was a bad year for my family). My question is do I need to amend our 2009 return to include the late K-1 in order to carry forward the excess capital loss to our 2010 return or can I just add the carry over to my return next year?

Hello rob,


You will need to file an amended return for 2009 in order to utilize this additional capital loss carryover. As you know, the amended return will not actually result in any change to the amount of taxes that you owe for 2009, but you will still need to file the amended return in order to get this $3,000 capital loss on record so that you can use that loss in future years.



Thank you





Merlo and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.

Is it cheating you if I extend my question a little? Do I send the new K-1 with the amended return? It does not look like the amended return creates an amended Schedule D. How does the IRS know of the excess capital loss that I will carry over to 2010?


I will accept you first answer. I was not sure if I could reply to you if I accepted first!

Hello again rob,


You are correct that the amended return itself (Form 1040X) will not create a new Schedule D. That will be up to you to recreate.


In other words, what you need to do is fill out a new Schedule D and attach that to your Form 1040X. On line C of form 1040X where it asks for an explanation as to why the amended return is being filed, simply put "Filing amended return to include additional capital losses reported on the late receipt of a K-1 form".


You do not need to send the IRS a copy of the K-1 form. They already have a copy in their records. Just submit the Form 1040X along with the amended Schedule D and that is all that is required.



Thank you