Enter capital losses to allocate to a beneficiary (1041)
Complete these steps to allocate capital losses to a beneficiary.
- Click the Allocation folder on the Data Entry tab to open the Allocate screen.
- If this is not a final return, enter X in the Allocate capital losses to beneficiaries on non-final return field in the Beneficiary Allocation Options section. If this is a final return, the first two steps in this procedure aren't required.
- Click the Beneficiaries tab and enter beneficiary information if you haven't already.
- Click Allocations on the left.
- Highlight the first beneficiary who will receive an allocation and click Edit.
- Enter percentages in the Required Percent Short-term Capital gains and Required Percent Long-term Capital gains fields to allocate the capital losses.
- Click Save.
Notes
- You can't use amounts to allocate capital losses.
- Per IRS instructions, capital losses are reported as positive amounts on Schedule K-1, Box 11 and not as negative amounts in
Box 3 or 4.
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