NOL carryforward for trust

Forum|Forum|3 years ago
March 8, 2023
2 replies
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I have a $33,000 loss from the sale of mutual funds for 2022. On the 1041 trust return TurboTax entered taxable income of -3,100. I understand that losses are limited to $3,000/year and the extra $100 is because this is a complex trust. Can I apply remaining losses to future years (limited to $3,000/year)? When I prepare the 2023 1041 return next year will TurboTax show the remaining NOL available? During the review the following appears: "If you wish to carry the NOL forward, instead of carrying it back, prepare the IRC 172(b)(3), Election to Forego the Carryback Period for Net Operating Loss statement (available in other forms you may need)"

What form has this election? I can't find it. Thanks in advance.

Best answer by Anonymous_

The trust has a capital loss, not an NOL (net operating loss).

As a result, the carryforward is a capital loss carryforward and that will automatically appear on the trust's 2023 return assuming you use TurboTax Business and transfer in the 2022 return.

Anonymous_Answer

Employee

The trust has a capital loss, not an NOL (net operating loss).

As a result, the carryforward is a capital loss carryforward and that will automatically appear on the trust's 2023 return assuming you use TurboTax Business and transfer in the 2022 return.

hntrustAuthor

Employee

Oh yes, I use TurboTax every year since I became a trustee in (2015). Thanks for the clarification 🙂

Mike9241

actually, you have not used any of the capital loss even though there is a $3,000 loss reported on the return. so you should have available $33K in 2023

capital losses cannot be carried back, (except possibly for RFCs - 1256 contract losses) so there is no election to forgo the carryback period.