- posted 11 years ago
Please help me understand the rudiments of reporting capital loss on
estate trust tax returns.
I confess that I have not done my homework on the subject. I am
hoping someone with lots of free time will be kind enough to
outline the basics. I hope it is not too much trouble.
First, I ass-u-me that it is no different from reporting capital loss
on personal tax returns. That is, we use Sched D or an equivalent
form; and there are limits on how much cap loss can be reported in a
year, with carry-overs to later years. Right?
If so, do the same dollar limits apply for estate trusts as for
personal taxes? And do same capital gain tax rates apply?
I confess that I am not even up-to-date on how all that works even for
personal tax returns.
Is it something like (I am asking about personal taxes as well as
1. We can report up to $3000 short-term net loss in any one year? The
excess carries over to future years?
Is the amount of short-term net loss limited by the amount of
ordinary taxable income?
Is there a limit on the amount that can be carried over?
2. We can report only as much long-term net loss to offset short-term
gain in any one year? The excess carries over to future years?
Is there a different limit on the amount of long-term net loss
that can be carried over?
3. The short-term capital gain tax rate is the same as the ordinary
income tax rate, which I believe is different for estate trusts than
for personal taxes, that is for amount, if any, that is not passed
through to the personal tax return?
4. The long-term capital gain tax rate is at most 15%?
Does the long-term capital gain tax rate depend on something? For
personal taxes, I vaguely recall that it is lower (or higher?)
depending AGI (less capital gain)? If so, is that true for estate
trusts, too? If so, is the rate structure the same for estate trusts?