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Level 4
posted Apr 4, 2024 2:51:30 PM

Using TTax Business is it possible to distribute less than 100% to K-1 beneficiaries?

Using TTax Business is it possible to distribute less than 100% of income to K-1 beneficiaries?

When I tried to allocate 20% 20% and retain 40% of the income for tax payment by the Trust, 
the "Beneficiary list" gave angry red, and the percentage did not reflect on From 1041.

Note: forms mode is all but completely broken in TTax Business Windows.

 

 

 

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1 Replies
Level 15
Apr 4, 2024 3:03:03 PM

@iOne wrote:

Using TTax Business is it possible to distribute less than 100% of income to K-1 beneficiaries?

No, it is not possible.

 

The amounts specifically allocated to the beneficiaries need to total 100%. The entire income/gain allocated to the beneficiaries does not need to total 100% but the amounts distributed to the beneficiaries does need to total 100%.