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
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