Estate from 1041 - distribution question

[drjulian]

Following Turbotax step-by-step for from 1041 under "Distributions" we are asked to enter the the "amount distributed to each beneficiary ". Researching a previously answered question about this in this forum*, this should be the amount of INCOME distributed to each beneficiary and not the total distributed to each from the estate. (Please correct me if I am wrong on that)

If this is correct, I am not sure what to enter here since the estate has a negative total income (line 9, form 1041, "Total Income") as the capital losses exceeded the income.

Do I enter a negative number or zero or something else here?

(*link to the previously answered question I referred to above: https://ttlc.intuit.com/community/business-taxes/discussion/1041-estate-return-what-do-i-put-in-the-...)

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[Critter-3]

Following Turbotax step-by-step for from 1041 under "Distributions" we are asked to enter the the "amount distributed to each beneficiary ". Researching a previously answered question about this in this forum*, this should be the amount of INCOME distributed to each beneficiary and not the total distributed to each from the estate. (Please correct me if I am wrong on that)    You are correct.

If this is correct, I am not sure what to enter here since the estate has a negative total income (line 9, form 1041, "Total Income") as the capital losses exceeded the income.   Unless the estate is filing it's final return the loss is usually not passed onto the beneficiaries.  If it is then a negative amount for the cap losses is possible. 

[drjulian]

Thank you for the reply.

To be clear it IS the estate's final return, so the negative should be entered. Which negative do I use?  Line 9 "Total Income" or Schedule B line 10 line 1 "Adjusted Total Income". They are not the same.

[tagteam · Accepted solution]

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@drjulian wrote:

Thank you for the reply.

To be clear it IS the estate's final return, so the negative should be entered. Which negative do I use?  Line 9 "Total Income" or Schedule B line 10 line 1 "Adjusted Total Income". They are not the same.

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@drjulian If the estate has absolutely no income, then the program will not populate the K-1(s).

You can ensure that happens by entering Forms Mode and inputting the appropriate percentage on the K-1(s) (see screenshot).

[drjulian]

Thank you for your reply. I see where the percentage is entered.

Based on that, would I enter "0" in under the "Distributions" tab for "Enter amount distributed to each beneficiary in 2021"?

[tagteam]

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@drjulian wrote:

Thank you for your reply. I see where the percentage is entered.

Based on that, would I enter "0" in under the "Distributions" tab for "Enter amount distributed to each beneficiary in 2021"?

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Provided you enter the percentage (as indicated previously) on the K-1s, you should not have to be concerned with the Distributions tab (although you can enter a figure).

[drjulian]

Many thanks for your help. I think I got it now 🙂