I have allocated dividend and interest distributions in forms k-1 between beneficiaries of a trust that allows such. However, it does not seem that those amounts are taken off the trust income (lines 1 & 2) in form 1041. I have been in the K-1 worksheet and also Schedule B but can't find a good way to do it. How is this done in the forms?
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Please explain further. What, exactly, is the issue?
The income is deducted on Line 18 of Form 1041 as your income distribution deduction (to the extent of DNI and the amount of your distribution).
Thanks for the help finding line 18. There was more to it then just plugging information, but I got it. Thanks.
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