How do you enter information from a Form 1041 K-1 (Trusts) Box 11B, Excess deductions on termination of the trust?

Forum|Forum|5 years ago
March 23, 2021
2 replies
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A deduction won't be assigned to your taxes if you just enter a number. You need to itemize it, but where? TT says to "search the topic and enter the amount in that topic." Meaningless.
Also, someone on here said the IRS has determined that excess deductions are no longer allowed. Wrong. Pub 529 explicitly says "Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust" are deductable.

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Best answer by Anonymous_

@luke622 wrote:
Also, someone on here said the IRS has determined that excess deductions are no longer allowed. Wrong.

Excess deductions - Section 67(e) expenses are allowed (from K-1 (1041) Line 11A).

Not all excess deductions on termination (non-miscellaneous itemized deductions) are allowed (from K-1 (1041) Line 11B). If such deductions are allowed, they are entered on Schedule A.

See https://www.irs.gov/instructions/i1041sk1#idm140535812810848

Contact the trustee, administrator, executor, or other person responsible for preparing the 1041 and K-1.

Anonymous_Answer

Employee

@luke622 wrote:
Also, someone on here said the IRS has determined that excess deductions are no longer allowed. Wrong.

Excess deductions - Section 67(e) expenses are allowed (from K-1 (1041) Line 11A).

Not all excess deductions on termination (non-miscellaneous itemized deductions) are allowed (from K-1 (1041) Line 11B). If such deductions are allowed, they are entered on Schedule A.

See https://www.irs.gov/instructions/i1041sk1#idm140535812810848

Contact the trustee, administrator, executor, or other person responsible for preparing the 1041 and K-1.

nycpa76

11B cannot be entered ( non misc item. ded) . Only 11E NOL. How do you enter non misc itemized deductions?

Anonymous_

Employee

@nycpa76 wrote:

11B cannot be entered ( non misc item. ded) . Only 11E NOL. How do you enter non misc itemized deductions?

You may deduct the excess deductions shown in box 11, code B, on the applicable line on Schedule A (Form 1040).

See Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2020) | Internal Revenue Service (irs.gov)

tskraus

I have the same question, i.e; schedule K-1 (form 1041) item 11.B, excess deductions - Non-miscellaneous itemized deductions and the box 11b note identifies the value as a state and local income taxes.

When I go to schedule A on the form 1040 Other itemized deductions, line 16 and try and input the value, TT links me to Schedule A line-16 Miscellaneous Itemized Deduction Worksheet and I am unable to input the value on line 28.

Do I need to override something in TT?

Anonymous_

Employee

State and local income taxes would be entered on Line 5a of Schedule A.

djesterb

This is exactly what I need to know. In my K-1 under 11b the specific description type is "state and local income taxes". TurboTax told me to search for that topic and enter in that amount for that topic. Well not that easy. So if you're saying it needs to go in Line 5a of Schedule A how do I edit that? I already have a number in that spot too. I just want to do this right. It's only $34 too.