Question

1041: Can I carry over excess estate deductions?

Forum|Forum|4 years ago
February 9, 2022
1 reply
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I am working on estate tax Form 1041 and have a lot of expenses for this first year ($5000) but only $1000 of income. Will I be able carryover the excess expenses to next (and final) year so the beneficiaries can deduct on their taxes next year?
Thanks!

TurboTax Business Windows

A

Anonymous_

Employee

Which type of expenses?

If the expenses are typical estate expenses, such as legal fees, fiduciary fees, et al, those expenses cannot be carried forward.

NOLs, capital losses, and passive losses, however, can be carried forward.

L

LLLCAuthor

All of the expenses are the typical estate expenses you listed, so unfortunately I cannot carry forward.

Thanks so much for your help @Anonymous_ !

A

Anonymous_

Employee

@LLLC

What date did the estate begin and which date were the expenses paid?

Would it be possible for you to elect a fiscal year (so you could file the initial and final return for the estate in order to take advantage of passing the expenses through to the beneficiaries on the final return)?