so I have figured out how to allocate current year trust capital gains to the beneficiary's K-1, but TT is reducing the trust's capital loss carryover by the amount of the capital gain allocated to the beneficiary.
How can I prevent TT from doing this?
It doesn't make sense that if the CG is pass throughed to the K-1 and thus is taxable on the beneficiarys personal return, why would TT then us up a portion of its capital loss carryover belonging to the trust?
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@dorff99 wrote:How can I prevent TT from doing this?
There are ordering rules that TurboTax follows, so you will likely have to do a hard override.
Also be sure that the trust allocates capital gains to the bene. That is unusual, but possible. Usually capital gains stay with the trust It depends upon the language of the trust, state law, and/or the practice of the trustee the first time it had capital gains.
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