Is anyone able to directly send me or provide a link to or post example attachment(s) of a Final Return Form 1041 and Schedules K-1 with a loss on a home sale and estate funds distributed to beneficiaries?
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If this helps:
You should have a Form 8949 showing the sale, a Schedule D showing a long-term loss, and a K-1 (or K-1s if there is more than one beneficiary) showing the loss on Line 11 (with a D code).
@incumbent wrote:Three beneficiaries were distributed 25% and two beneficiaries were distributed 12.5%. Am I supposed to manually enter a capital loss on each K-1 Line 11 via Forms Mode?
No. Indicate that the estate is filing its final return and the indicate that distributions were made. Immediately enter Forms Mode, open each K-1, and enter each beneficiary's percentage on the Beneficiary's Allocation Smart Worksheet (on Line B1).
Entering this transaction should not be overly difficult.
Did the estate actually sell the decedent's home? Enter it in the Investment Income section.
I've used the software to prepare the Form 1041 and Schedules K-1 but I would like to compare the final return to an example(s).
If this helps:
You should have a Form 8949 showing the sale, a Schedule D showing a long-term loss, and a K-1 (or K-1s if there is more than one beneficiary) showing the loss on Line 11 (with a D code).
The federal tax return contains Form 8949 and Schedule D but there are five beneficiaries/K-1s and they all have blanks on Line 11 Final year deductions. In fact, each K-1 is blank except for Part I Information About the Estate and Part II Information About the Beneficiary. However, I have no TurboTax errors.
Three beneficiaries were distributed 25% and two beneficiaries were distributed 12.5%. Am I supposed to manually enter a capital loss on each K-1 Line 11 via Forms Mode? If so, what amounts do I enter on each K-1 Line 11? Am I supposed to calculate each beneficiary's capital loss using his/her year-end distribution as a percentage of the capital loss limitation ($3,000) or the total loss (~$37,000) or allocate in some other manner?
@incumbent wrote:Three beneficiaries were distributed 25% and two beneficiaries were distributed 12.5%. Am I supposed to manually enter a capital loss on each K-1 Line 11 via Forms Mode?
No. Indicate that the estate is filing its final return and the indicate that distributions were made. Immediately enter Forms Mode, open each K-1, and enter each beneficiary's percentage on the Beneficiary's Allocation Smart Worksheet (on Line B1).
On the Beneficiary's Allocation Smart Worksheet, Line A1 is populated because I entered the distributions in Step-by-Step Mode and Line B1 is populated per your instructions.
However, it says "A Enter this beneficiary's dollar amount of: B Or, enter this beneficiary's percentage of:"
Even though the Beneficiary's Allocation Smart Worksheet instructions say "Or," am I still supposed to have amounts on both Lines A1 and B1?
@incumbent wrote:Even though the Beneficiary's Allocation Smart Worksheet instructions say "Or," am I still supposed to have amounts on both Lines A1 and B1?
That is the typical behavior of the program; if you clear the percentage, the actual figure in A1 will disappear.
The estate is a PA resident but each beneficiary is a PA nonresident. Each PA Schedule NRK-1 is blank except for Section I - General Information similar to how each Federal Schedule K-1 was before I entered each beneficiary's percentage on the Beneficiary's Allocation Smart Worksheet, like you instructed.
Do you know if I'm supposed to follow similar procedures on each beneficiary's PA Schedule NRK-1 as I did on each Federal Schedule K-1 to generate similar information as what is now reported on Federal Schedule K-1 Line 11 Final year deductions? If so, how? I don't see any sort of "PA" Beneficiary's Allocation Smart Worksheet.
@incumbent wrote:....I don't see any sort of "PA" Beneficiary's Allocation Smart Worksheet.
I am not certain about PA, in particular, but do know that at least two states (in the 1041 module) require direct entries in Forms Mode; PA may be another.
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