benderw8

[benderw8]

Hello.  I am using Turbotax business and trying to distribute Capital gain net income to applicable beneficiaries.  Out of 9 beneficiaries only two should receive capital gain income.  The system is allocating the capital gain income to all 9 beneficiaries proportionately.  How can I stop gain from K-1s of beneficiaries not receiving or due income.

[DavidD66]

I assume the Trust is a complex trust, since simple trusts do not typically distribute capital gains.  Make sure in the General Information section you have indicated that the trust is a complex trust.  Next,:

• Go to the FEDERAL TAXES tab.
• Select Distributions.
• Mark the button for "Distribution Amounts" and click Continue.
• Enter the distribution amounts for each beneficiary by tier.

First Tier is income required to be distributed such as interest and dividends.  Second Tier is any distribution that is not Tier 1, such as capital gains or principal.