turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

dorff99
Returning Member

trust distribute capital gains to beneficiary when trust has a capital gain loss carryover

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?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

trust distribute capital gains to beneficiary when trust has a capital gain loss carryover


@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.

jtax
Level 10

trust distribute capital gains to beneficiary when trust has a capital gain loss carryover

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. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question