I am filing 1041 as trustee of a complex irrevocable trust.
All of the taxable income was distributed to the beneficiary
(discretionary, not required). Therefore the Sched B lines 1 and 15
are the same, and same as main form line 17.
I enter this in line 18, and add the $100 deduction in line 20
to get line 21.
Line 22 says to deduct line 21 from line 17.
That results in -$100 because of the $100 deduction added in line 20,
meaning I have a NOL of $100.
This does not seem right.
Why should distributing all the money result in a loss?
Did I do something wrong?
If this is right, how do I handle the NOL?