TAXMAN Posted March 22, 2012 Report Share Posted March 22, 2012 TP received K-1 from estate final year. excess deductions being placed on schedule A not subject to 2%. Creating a large negative income. Is this a business deduction not allowed for calculating the NOL? I cannot find where it is allowed Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 23, 2012 Report Share Posted March 23, 2012 If the amount is reported on K-1 on Line 11-A, then it is reported on Line 23 of Schedule A, and it IS subject to the 2%....if that is of any help to you. Cathy Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 23, 2012 Author Report Share Posted March 23, 2012 Nope. I got that far and then have a big negative taxable income. I wanted to know if the deduction could be considered business deductions for calculation of a NOL. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 27, 2012 Report Share Posted March 27, 2012 No, he does not get a business loss from an inheritance. Even if he inherited a business, the only way he gets a business loss is from the operation of the business, not from the Estate's K-1. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 27, 2012 Report Share Posted March 27, 2012 Section 172 disallows income not attributable to a taxpayer's trade or business in the NOL calculation. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 29, 2012 Author Report Share Posted March 29, 2012 Thanks. I finally came to that conclusion also. TP ain't happy but thats his problem. Quote Link to comment Share on other sites More sharing options...
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