Updated September 29, 2026. Quick answer: Box 11 code E is a net operating loss (NOL) carryover for regular tax and code F is an alternative tax NOL carryover for the alternative minimum tax. A beneficiary who succeeds to the property at termination may deduct them, on Schedule 1 line 8a or Form 6251 line 2f.
What codes E and F mean
The instructions read here are the 2025 edition of the IRS Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (Catalog Number 11374Z, dated March 13, 2025), the edition served at the IRS standing PDF address when read on September 29, 2026. They are written for the beneficiary; the fiduciary’s own instructions are in the Instructions for Form 1041. The IRS instruction reads: “Upon termination of a trust or decedent’s estate, a beneficiary succeeding to its property is allowed to deduct any unused net operating loss (NOL) if the carryover would be allowable to the trust or estate in a later tax year but for the termination.”
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| E | Net operating loss carryover, regular tax | Schedule 1 (Form 1040), line 8a |
| F | Net operating loss carryover, minimum tax | Form 6251, line 2f |
Code E, regular tax
“The deduction for regular tax purposes, reported as code E, is reported on Schedule 1 (Form 1040), line 8a.”
Code F, alternative minimum tax
“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.” The AMT items in Box 12 are on the Box 12 page.
Common mistakes
- Treating a code E amount as a current-year loss. It is an unused carryover passed on at termination.
- Putting the code F amount on Schedule 1. The instruction sends it to Form 6251.
- Assuming the carryover always exists. The instruction covers it only if it would have been allowable to the estate or trust in a later year but for the termination.
Related: Schedule K-1 Box 11 Codes C and D: Capital Loss Carryover, Schedule K-1 (Form 1041) Box 12: Alternative Minimum Tax, and the AMT exemption figures.
Every box and code in one place: the Schedule K-1 (Form 1041) boxes table. What a K-1 from an estate reports overall is on the Schedule K-1 for estates page.
Sources
- IRS, Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf
- IRS, Schedule K-1 (Form 1041) 2025, Beneficiary’s Share of Income, Deductions, Credits, etc., page 2 code list: https://www.irs.gov/pub/irs-pdf/f1041sk1.pdf
Source: the IRS instructions for the beneficiary who receives Schedule K-1 (Form 1041), and the form’s own code list, read at irs.gov on September 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the estate’s or trust’s fiduciary or the IRS is the right place to confirm anything consequential.