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Level 3
posted Jan 3, 2021 6:40:31 PM

1041 - Make Capital gains part of Distributable Net Income

The trustee of our trust has a lot of discretion, although it is not spelled out, specifics are left unsaid in the document. We want to make a distribution to beneficiary and besides the usual DNI, we want to also include part of the capital gains as DNI, so it is taxed at the beneficiary level. I wonder how we would do this in the TT Business software. Is there a separate schedule or form where we could specify that?

thanks

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1 Best answer
Level 15
Jan 3, 2021 6:51:23 PM

That discretion needs to include the authority to distribute corpus to the beneficiaries (and the discretion to distribute gains really should be spelled out in the instrument).

 

In TurboTax Business, you simply need to allocate the gains to the beneficiaries and to income as depicted in the screenshots below.

 

1 Replies
Level 15
Jan 3, 2021 6:51:23 PM

That discretion needs to include the authority to distribute corpus to the beneficiaries (and the discretion to distribute gains really should be spelled out in the instrument).

 

In TurboTax Business, you simply need to allocate the gains to the beneficiaries and to income as depicted in the screenshots below.