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Author: ngcpa Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Re: Trust loss carryover Date: 3/19/2008 10:59 PM
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Thank you very much Peter and Phil for your responses to my post:

<<< had a client who had an uncle who died. He had a K-1 from the trust. In box 11 (final year deductions long-term capital loss carryover) there was $ 12,000. I don't understand this. I thought when someone died, capital loss carryovers died with them. I thought not even spouses were able to take capital loss carryovers (unless jointly owned). Why is this even a possibility. I admit I don't know much about estates, trusts, corporate, etc. just individuals.>>>>

If I understand what you are saying, as an example: If the uncle had purchased some stock for $ 30,000 2 years before he died, and on the date of death it was worth $ 20,000, but was sold 6 months later for $ 15,000 while the estate was being settled, there would be a long term loss carryover that would pass through. I assume it would be for $ 5,000 though, right? I can't imagine they would let the whole $ 15,000 carryover. Then again I know reason, logic and fairness don't have a lot to do with taxes. Just trying to fully understand how this works.
Norm
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