This article focuses solely on the entry of the Deduction, Credit and Other Items which are found on Lines 10 through 11 of the Schedule K-1
Estate Tax Deductions
Box 10 –Estate Tax Deduction
Amounts entered on this line will automatically flow to Schedule A (Form 1040) Line 28 as a Miscellaneous Deduction with a notation referencing "ESTATE TAX DEDUCTION FORM K-1" and the amount on Box 10. Because this item is entered on Schedule A (Form 1040) Line 28 as a Miscellaneous Deduction, it is not subject to the limitation that the expense must exceed 2% of the amount on Form 1040, line 38 (Adjusted Gross Income).
Final Year Deductions
Line 11 A – Final year Deductions - Excess Deductions
Amounts reported in Box 11A will automatically carry to Schedule 1 Line 24k.
Line 11 B – Excess Deductions on Termination—Non-Miscellaneous Itemized Deductions
Section 67(g) suspends miscellaneous itemized deductions subject to the 2% floor for tax years 2018 through 2025. Therefore, miscellaneous itemized deductions are not deductible as excess deductions on termination.
Line 11 C– Final year Deductions - Short Term Capital Loss Carryover
Amounts reported in Box 11B represent the entity's Short term capital loss carryover and this amount will automatically flow to Schedule D (Form 1040), Line 5.
Line 11 D- Final year Deductions - Long Term Capital Loss Carryover-
Amounts reported in Box 11B represent the entity's Long term capital loss carryover and this amount will automatically flow to Schedule D (Form 1040), Line 12.
Box 11 E – Final year Deductions - Net operation loss carryover - regular tax
This amount will automatically flow to Form 1040, Schedule 1, Line 8a.
Box 11F- Final year Deductions - Alternative Tax NOL - Manual Entry required
A deduction for an Alternative Tax NOL (ATNOL) carryover for alternative minimum tax (AMT) purposes, reported as code F, is reported on Form 6251, line 2f (Alternative tax net operating loss deduction).