Christian Posted January 19, 2016 Report Share Posted January 19, 2016 A client who died in March 2015 owned a farm which has a remaining NOL which has been carried forward for a few years. On her final return there will remain a portion of this NOL unused. Can this be used on her Form 1041 on line 15b to reduce any tax due on the 1041? Somewhere in the distant past I encountered this same problem and arrived at the opinion that an unused NOL is simply lost but this applied to a succeeding owner of a farm who was not allowed to use the prior owners NOL. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 19, 2016 Report Share Posted January 19, 2016 No, the NOL incurred prior to death and reported on the individual's personal return is lost. From pub 559: "Carryover losses resulting from net operating losses or capital losses sustained by the decedent before death cannot be deducted on the estate's income tax return. 1 Quote Link to comment Share on other sites More sharing options...
Christian Posted January 19, 2016 Author Report Share Posted January 19, 2016 Thank you for your information. It could hardly be more clear than that. I do very few 1041s. A pity it cannot be deducted. Quote Link to comment Share on other sites More sharing options...
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