Estate from 1041 - distribution question

Forum|Forum|4 years ago
December 31, 2021
1 reply
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Following Turbotax step-by-step for from 1041 under "Distributions" we are asked to enter the the "amount distributed to each beneficiary ". Researching a previously answered question about this in this forum*, this should be the amount of INCOME distributed to each beneficiary and not the total distributed to each from the estate. (Please correct me if I am wrong on that)

If this is correct, I am not sure what to enter here since the estate has a negative total income (line 9, form 1041, "Total Income") as the capital losses exceeded the income.

Do I enter a negative number or zero or something else here?

(*link to the previously answered question I referred to above: https://ttlc.intuit.com/community/business-taxes/discussion/1041-estate-return-what-do-i-put-in-the-box-when-tt-asks-how-much-i-distributed-to-each-beneficiary/00/2345158)

Best answer by Anonymous_

Thank you for the reply.

To be clear it IS the estate's final return, so the negative should be entered. Which negative do I use? Line 9 "Total Income" or Schedule B line 10 line 1 "Adjusted Total Income". They are not the same.

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If this is correct, I am not sure what to enter here since the estate has a negative total income (line 9, form 1041, "Total Income") as the capital losses exceeded the income. Unless the estate is filing it's final return the loss is usually not passed onto the beneficiaries. If it is then a negative amount for the cap losses is possible.