K-1 (1041) NOL Carryforward to offset Roth IRA Conversion
I have a 2012 K-1 (form 1041), box 11 - Final year deduction, code D - Net operating loss carryover - regular tax of $277,395.
Two questions for those of you who understand tax code better then myself:
1. Am I allowed to carryover the unused NOL amount into future years until depleted since this is related to the closing of a trust as reported on the Schedule K-1, Final K-1, that I received from the trust this week? (I plan to waive the 2 year carryback option, if available, to take advantage of a yes answer to question 2 below)
2. If am allowed to carryover unused NOL losses, can I use these to offset taxes on a Roth IRA Conversion?
Yes I do plan to meeting with my tax advisor; however, I'm trying to understand my options prior to this meeting, which will be delayed due to the tax time frenzy of his appointments.
Thanks for you comments!