Carryovers and unused deductions on a final return
When an estate or trust terminates, you can pass through the following items to the 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
