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Returning Member
posted Apr 5, 2022 1:15:41 PM

Reporting Trust Capital Gains - Form 1041

Hi, after I filed my 2021 taxes online I discovered a Schedule K-1 for my deceased mother's trust that I'd missed.  When I went into TurboTax to work on an amended return, the amount of federal tax I owe did not change after I added the $6,184 in "Net long-term capital gain" from the K-1.  Is this to be expected?  Thanks.

 

K-1 Details

Box 4a $6184

Box 12A $1413

Box 12D $1413

Box 12J $1413

 

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2 Replies
Level 15
Apr 5, 2022 2:22:48 PM

@Mike B2 wrote:

...after I added the $6,184 in "Net long-term capital gain" from the K-1.  Is this to be expected?  

That would be dependent upon your other income (and deductions), but long-term capital gains are tax-advantaged in the sense that they are taxed at lower tax rates and there is a cap on the top rate.

Expert Alumni
Apr 5, 2022 2:46:29 PM

Yes, it is definitely possible this wouldn't change your tax due or refund. Long term capital gains are taxed a lower rate than other income, as low as 0%. Check the chart below to see if your income puts you in the 0% tax bracket.

 

The box 12 entries are all related to Alternative Minimum Tax, so if you don't pay AMT, they don't affect you.