A Silver LiningA Silver Lining

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Laura H. Peebles is tax director in the national office of Deloitte Tax LLP in New York.

Dawn Angermaier is a senior manager at Deloitte Tax LLP in New York.

In the wake of the Supreme Court's Knight decision,¹ trustees would have been justified wondering if there would ever again be a use for the line called “Itemized Deductions not Subject to the 2% Floor” on Form 1041.

Then 2008 showered the country with losses in nearly every category. And, as it turns out, net operating losses (NOL) carried back to a prior year or forward to a future year belong on that line for unlimited “other” deductions.

But how do we go about claiming these losses?

Some fiduciaries are experiencing ordinary business, casualty or theft losse...