Form 1041 Trust negative income not reported on K-1.

[TenOC]

Trust negative income not reported on K-1.

I am the trustee of a complex trust and for years have filed the required 1041. This year will be the final return for the trust since all of the assets have been distributed. The trust has a negative taxable income (form 1041 line 23). I thought (?) that on the trust’s final return this negative taxable income would be reported on the beneficiaries K-1 as a negative income.

I do not see where this negative income is being reported on the beneficiaries K-1.

[Anonymous_]

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@TenOC wrote:

I do not see where this negative income is being reported on the beneficiaries K-1.

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In TurboTax, you have to go through the Distributions section and indicate that the trust made a distribution, despite the fact that this is the final return and trust's taxable income is negative.

[TenOC]

I understand that.  Do I post the final distribution as a negative number?

[Anonymous_]

@TenOC You can do it that way (negative) or you can enter the distributions as percentages.