1041 is not including capital gains from 1099DIV on form K1. So form 1041 is showing a taxable income in the amount of the capital gain. Do I enter someplace else?

[davidmbrendak]

Filing a 1041 for a final trust, only income is from one 1099 DIV.  The 1099DIV shows an amount in box 2a(Capital Gains) that I entered.  I checked that 100% of income was paid to beneficiary, but form K1 does not include the capital gain and results in the capital gain showing up on line 22 as income.  Should I enter the capital from 1099DIV elsewhere to make line 22 show 0 income?

[Anonymous_ · Accepted solution]

" Should I enter the capital from 1099DIV elsewhere to make line 22 show 0 income?"

No. First, ensure that you have both allocated the gain to your beneficiary and also allocated the gain to income (see first three screenshots below).

Next, ensure that you have actually distributed the gain in the Distributions section of the program. If, for some reason Percentages do not work, try Distribution amounts (see fourth screenshot).

If your K-1 still does not include the capital gain, enter Forms Mode and type the beneficiary's percentage of the income distribution deduction directly on the K-1 (see fifth screenshot).

[davidmbrendak]

Thanks for your help.  Everything looks good now.

[Anonymous_]

You are most welcome.