U.S. · Tax forms
K-1 (1041) box 11 final year deductions.
Codes A to F, who can use them, and why they only appear when an estate or trust ends.
Box 11 of a Schedule K-1 (Form 1041) reports deductions that pass to you when the estate or trust terminates. Code A (section 67(e) expenses) goes on Schedule 1 (Form 1040), line 24k. Code B goes on the applicable line of Schedule A. Codes C and D are unused capital loss carryovers, and codes E and F are net operating loss carryovers. These items arrive only on the final-year K-1 and only to the beneficiary who succeeds to the property.
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Result
Box 11 codes (2025 K-1)
| Box / code | Meaning | What it does and where it goes (per the IRS instructions) |
|---|---|---|
| 11 A | Excess deductions on termination: section 67(e) expenses | Deduct as an adjustment to income on Schedule 1 (Form 1040), Part II, line 24k. |
| 11 B | Excess deductions on termination: non-miscellaneous itemized deductions | Deduct on the applicable line of Schedule A (Form 1040); the fiduciary provides a statement of allowable deductions. |
| 11 C | Short-term capital loss carryover | Schedule D (Form 1040), line 5. |
| 11 D | Long-term capital loss carryover | Schedule D (Form 1040), line 12, and, as appropriate, line 5 of the 28% Rate Gain Worksheet and line 16 of the Unrecaptured Section 1250 Gain Worksheet. |
| 11 E | Net operating loss carryover, regular tax | Schedule 1 (Form 1040), line 8a. |
| 11 F | Net operating loss carryover, minimum tax (ATNOL) | Form 6251, line 2f. |
When box 11 appears
Excess deductions on termination occur only in the last tax year of a trust or a decedent’s estate, when total deductions (not counting the charitable deduction and exemption) are greater than gross income for that year. Only the beneficiary who succeeds to the trust’s or estate’s property can deduct them. A beneficiary who does not have enough income that year to absorb the whole deduction cannot carry the rest to a later year.
That is why box 11 is blank on almost every K-1. Item E on the K-1 asks whether it is the final Form 1041 for the estate or trust, and box 11 is where the termination items land.
Code A and code B, and the 2% floor note
Code A covers section 67(e) expenses and code B covers non-miscellaneous itemized deductions. The instructions point to the final regulations in TD 9918 for examples of allowable excess deductions on termination.
The instructions add a note: section 67(g) suspends miscellaneous itemized deductions subject to the 2% floor for tax years 2018 through 2025, so those are not deductible as excess deductions on termination. They also point to your state tax agency for the state-return treatment.
Codes C to F: carryovers pass to the successor
When a trust or estate ends, the beneficiary who succeeds to the property can deduct any unused capital loss carryover under section 1212. A short-term loss (code C) is reported on Schedule D line 5. A long-term loss (code D) goes on Schedule D line 12 and, as appropriate, the 28% Rate Gain and Unrecaptured Section 1250 Gain Worksheets. An unused net operating loss that would have been allowable to the trust or estate in a later year is deductible by the successor: the regular-tax amount (code E) on Schedule 1 line 8a and the alternative tax NOL for minimum tax (code F) on Form 6251 line 2f.
Limits of this page
This page summarizes the beneficiary instructions for Form 1040 filers. Your own income limits what you can use in the year, and the fiduciary’s statement controls the detail. See also box 1 and box 12.
Sources
- Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): Box 11, Codes A to F, including the section 67(g) note. Read November 2, 2026.
- Schedule K-1 (Form 1041) for 2025, page 2 code list: Page 2 code list for box 11. Read November 2, 2026.
IRS instruction pages last reviewed April 30, 2026. Form and line references are those printed in the 2025 forms and instructions and can change.
Frequently asked questions
What is box 11 on a Schedule K-1 (Form 1041)?
It reports final-year deductions that pass to a beneficiary when an estate or trust terminates: excess deductions, capital loss carryovers and net operating loss carryovers.
Where does box 11 code A go?
Code A, excess deductions on termination that are section 67(e) expenses, is deducted as an adjustment to income on Schedule 1 (Form 1040), Part II, line 24k.
Can I carry a box 11 excess deduction to next year?
No. A beneficiary who does not have enough income in the year to absorb the whole deduction cannot carry the balance to a later year.
Are miscellaneous itemized deductions allowed as excess deductions on termination?
Not for tax years 2018 through 2025. Section 67(g) suspends miscellaneous itemized deductions subject to the 2% floor, so they are not deductible as excess deductions on termination.
Where do box 11 codes C, D, E and F go?
Code C goes on Schedule D line 5 and code D on Schedule D line 12 and the related worksheets. Code E goes on Schedule 1 (Form 1040) line 8a and code F on Form 6251 line 2f.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The estate, trust or corporation that issued the K-1, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.