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Level 2
posted Dec 30, 2021 9:58:22 PM

Estate from 1041 - distribution question

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-box-when-tt-asks-how-much-i-distributed-to-each-beneficiary/00/2345158)

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1 Best answer
Level 15
Dec 31, 2021 7:09:15 AM

7 Replies
Level 15
Dec 31, 2021 3:32:37 AM

[removed by  me]

Level 15
Dec 31, 2021 4:48:32 AM

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. 

Level 2
Dec 31, 2021 6:44:16 AM

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.

 

 

Level 15
Dec 31, 2021 7:09:15 AM

Level 2
Dec 31, 2021 9:38:22 AM

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"?

Level 15
Dec 31, 2021 9:42:16 AM


Level 2
Dec 31, 2021 9:43:52 AM

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