I’m working on a 1041 for step-mother’s estate (I’m the executor). It’s a simple estate, no trusts, no real estate just income from a brokerage account (1099-B) and an annuity (1099-R). The tax due is about $709 and I want to pay it from the estate rather than generating a K-1 for 10 beneficiaries.
How do I tell TT that I want to skip beneficiaries and NOT generate K-1s?
im using the desktop version for windows
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You can't tell the program to "skip beneficiaries" and not generate Forms K-1. The program is going to generate all forms required to be transmitted as part of the e-file transmission. If the estate pays the appropriate amount in taxes, the beneficiaries aren't responsible for taxes. However, if the estate distributes taxable income to its beneficiaries before paying taxes, then the beneficiary will be responsible for taxes on that income.
This is completely false and misleading information. I found a way to do it in the software; it literally says SKIP beneficiaries and when you do that it will compute the tax owed and eliminate the step of generating K1s which is what I wanted to do (have the estate pay the tax so that all 10 beneficiaries don't have to deal with a K-1).
Next question: I want to efile the form 1041 using TT Business. IRS requires that we attach the Letters Testamentary with the return. I'm not seeing a way to do this within TT. I can attach form 8453 to the efile return but not seeing a way to include another document as an attachment.
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