1041-US: 28-percent rate capital gain / loss does not appear on Schedules K-1 for final returns (FAQ)

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Question

Why aren't the 28-percent rate capital gain / loss items appearing on the Schedules K-1 for a final return?

Answer

On a final return, you do not need to mark the Allocate capital losses to beneficiaries on non-final return field on Screen Allocate in the Allocation folder for the losses to transfer to Schedule K-1 if there is an overall loss. However, if the capital gains of one type (short-term versus total long-term) are greater than the capital losses of the other type, the loss is netted against the gain, and no losses print on Schedule K-1.

When there is a 28-percent rate capital gain with an overall long-term capital loss, the long-term capital loss prints on Schedule K-1, line 11, Code C without the 28-percent rate gain information included on the return. If you enter X in the Print 28% gain with long-term loss field on Screen Allocate in the Allocation folder, the 28-percent rate gain prints on Schedule K-1, line 4b.

Related topic: 1041-US: Schedule K-1 FAQs

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