EBL exceeding 250K in Trust's Final Year - Spidell

EBL exceeding 250K in Trust's Final Year

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Message Board EBL exceeding 250K in Trust's Final Year

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 9 months, 2 weeks ago.

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  • #141661
    Gina Yoshimune
    Participant

    If you have an EBL (excess biz loss) in excess of 250,000 on a trust (there was a loss on sale of rental property) this creates an NOL. All of this happened in the final year of the trust. What happens to the excess loss in the trust final year? It appears that it is lost and not deductible anywhere, is this correct?

  • #141730
    Sandy Weiner
    Participant

    It may be claimed by the beneficiaries. See IRC Sec. 642(h) and Treas. Regs. 1.642(h)-1