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Elsie
Level 3

Schedule k1 dividends

I am in the process of distributing the beneficiaries their $ from my late Aunt's Estate. I am working on the 1041's I see where on Turbo Tax you can indicate that none of any capital gain is allocated to the beneficiaries but do not see this option for the dividends. How do I get it so beneficiaries are NOT responsible for any tax??

14 Replies
Critter
Level 15

Schedule k1 dividends

The form 1041 is an income tax form ... if you want the estate to pay all taxes then simply don't enter any beneficiaries to distribute the income to ... the IRS doesn't care who gets what only that the taxes on the income are paid to someone.
Elsie
Level 3

Schedule k1 dividends

Thanks so much. Another question I did an initial estate return for 2017 but probate is taking a very long time (no issues just a pain) do I have to do an estate return for 2018 if I am not doing any distribution until 2019 and then just do a final in 2019?
Elsie
Level 3

Schedule k1 dividends

You are very rude, if you don't want to answer questions or get frustrated with people who are asking them because "you are so smart" stay off the site" GET AN EDUCATION really!!!!!!
Elsie
Level 3

Schedule k1 dividends

My question if you read it was do I need to file a 1041 in 2018 if I already did an initial in 2017 and will not be doing anything until 2019
Critter
Level 15

Schedule k1 dividends

Again... if you have no income to report then you do not need to file an income tax return.  

And this is a public forum for TT users and we are not here to complete a return for you but to educate you on where to find the answers ... how do you know the nameless faceless posters on this site are even giving correct answers if you don't do your homework to confirm them ... and sometimes it is best to seek professional help if you don't want to put in the time or effort.
Elsie
Level 3

Schedule k1 dividends

all noted but you are rude in how you reply, simply you could have said see a professional (as you did) and left it at that or say the situation is complicated and I need to do research, but hey whatever
ScruffyCurmudgeon
Level 9

Schedule k1 dividends

@Mike L @TurboTaxGabi @TurboTaxVinceL   Mike, those of us here who are either Intuit employees (I am not!) or "SuperUsers" (I am those indicated are, we are volunteers) - apologize to you for Critter's words - she is not affiliated here - and yes, she can be abusive
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
ScruffyCurmudgeon
Level 9

Schedule k1 dividends

@Mike L - I don't think you really got the answer to your question but I think it  best that if you want to pursue this you start a new question thread!
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
Elsie
Level 3

Schedule k1 dividends

Thanks,
Critter
Level 15

Schedule k1 dividends

Once again the form 1041 is to report and pay taxes on income earned by the estate ... it has nothing to do with the distribution of the corpus ... the IRS doesn't care. 


 Read that form 1041 & instructions carefully or seek professional help to complete the return correctly [inappropriate communication]

https://www.irs.gov/site-index-search?search=1041&field_pup_historical_1=1&field_pup_historical=1


https://ttlc.intuit.com/questions/1901403-do-i-have-to-file-a-trust-tax-return

https://ttlc.intuit.com/replies/3302186

Anonymous
Not applicable

Schedule k1 dividends

you'll need to read the legal documents associated with the trust/estate.  they may specify the income must be distributed to beneficiaries.  Whether that includes capital gains would also be specified in the documents.  Your state probably has an income and principal act that defines how expenses are to be allocated.  this can affect the computation of accounting income and distributable net income which will affect the income beneficiaries are to report.      


for example.  for income tax purposes the income/loss of a partnership would be reported.  however, for accounting income purposes under many state laws, only the cash received is included.

ScruffyCurmudgeon
Level 9

Schedule k1 dividends

Additionally, a number of states restrict the distribution of gains, and even if allowed, may tax the gains at the Trust level and not Beneficiary.
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
GabiU
Community Manager

Schedule k1 dividends

@Mike L Thanks for using AnswerXchange and thank you to all the volunteers that have answered here. 

I'd like to note our Community Values: Be Accurate, Be Helpful, Be Open to Share & Be Open to Learn. 
https://ttlc.intuit.com/questions/4134975-
Our Community Guidelines note to not attack others. 
https://ttlc.intuit.com/questions/4134644

We encourage all users to follow embody our Values and Guidelines. 

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ScruffyCurmudgeon
Level 9

Schedule k1 dividends

See <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4511641-1041-initial-or-final">https://ttlc.intuit.com/questions/4... final response for @Mike L
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
-------------------------------------------------------
-------------------------------------No Not an Intuit Employee - Just donating my time
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