1041 k-1 issue

[tuteurjohn]

1) 1041 LINE 6 for main trust shows $4958 farm income.  This beneficiary which is a trust K-1 has $1,328 in Box 5.  Is that $1,328 this beneficiary's share of farm income.

2) Box 7 has $15,335 which did not carry over to this beneficiary trust's Schedule E Pg 2 as Passive Income.  Why not?

[Anonymous_]

1) Did you prepare the Schedule F in Forms Mode? I have to presume that was the case. Regardless, the figure from that schedule would wind up in Box 5 on the K-1 but the actual figure in that box would be dependent  upon the beneficiary's percentage of the distribution ($4,958).

2) On a test return, I was unable to reproduce that issue. The figure in Box 7 appeared in the Passive Income column on page 2 of Schedule E. There must be an input error at some point.

[tuteurjohn]

Many thanks, tagteam, for the answer to the first part of my question.

For the second part, the k-1 to the beneficiary trust from the main trust is correct.  When I open the beneficiary trust that received the K-1, it requires me to complete the K-1 for the main trust again for the beneficiary trust return.  Boxes 5 and 9A are filled out on the main trust K-1 on the beneficiary trust form site but Box 7 is not.  Why did Box 7 not carryover from the K-1 for the beneficiary trust as shown on the main trust form site.

I completed the main trust K-1 for the beneficiary trust on the beneficiary trust site and that cured the problem. 

[Anonymous_]

Did you see the figure in Box 7 on page 2 of Schedule E?

[tuteurjohn]

It finally showed up but I had to put the trust in twice as A and B.  Aargh!

Thanks for staying in touch,

John T.