New (tax) year, new help!
Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
Question
What happens to carryovers and unused deductions on a final return?
Answer
When an estate or trust terminates, the following items are available to pass through to beneficiaries.
- Short-term capital loss carryover
- Long-term capital loss carryover
- Net operating losses
- Excess deductions (subject to 2% AGI limit)
When an estate or trust terminates, the following items expire.
- Foreign tax credit (Form 1116)
- Business tax credits
- Passive activity losses
- Minimum tax credit (Form 8801)
- Charitable contributions
- Investment interest carryover (Form 4952)
- Section 1231 loss carryover
Related topic: 1041-US: Final return of Form 1041 FAQs
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