I'm trustee of a complex trust that allows capital gains to be included in income and distributed. I was having trouble getting the schedule D line 19 to match the K-1, so I tried a simple test. I use $6,000 of dividends and $4,000 of capital gains, with a distribution of $8,000 to the beneficiary. I've tried every combination on the screens "Allocation of Long-Term Gain" and "Gains Attributable to Income," and either the Schedule D is correct or the K-1 is, but not both, as follows:
Allocation Gains Attributable Sched B DNI Sched D to beneficiary K-1
3,200 3,200 9,200 3,200 2,783
4,000 3,200 9,200 4,000 3,200
3,200 4,000 10,000 3,200 2,855
4,000 4,000 10,000 4,000 3,200
I believe the DNI should be $10,000 and the distribution to the beneficiary should be $3,200 on both the Sched D and the K-1, but there is no combination that provides that answer. Can you help?