1041-US: Capital loss is not limited to $3,000 on Form 1041-A (FAQ)

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Question

Why isn't the capital loss limited to $3,000 on Form 1041-A, Page 1, line 4?

Answer

The $3,000 is an income tax loss limitation. Because Form 1041-A is an Information Return, this tax limitation is not applicable. The full capital loss prints on Form 1041-A, Page 1, line 4. Because of this, any prior-year carryover showing on Form 1041 is not reflected on Form 1041-A, Page 1, line 4.

Related topic: 1041-US: Form 1041-A FAQs

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