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mc_meyer
New Member

When preparing a 1041 for the final year of a trust, how do I get TT Business to populate the schedule K-1 Line 11A to correctly distribute the excess deductions?

Form 1041 Line 17 shows a negative amount and Line 22 is also negative. The negative amount appears on the Distributable Income worksheet, Line 11, but then on Line 12, it is reversed to a positive number and Line 14 is zero. The K-1 created is completely blank. 

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Accepted Solutions
tagteam
Level 15

When preparing a 1041 for the final year of a trust, how do I get TT Business to populate the schedule K-1 Line 11A to correctly distribute the excess deductions?

Enter Forms Mode and ensure that your 1041 shows that the "Final return" box is checked (see screenshot).

Ensure that you have actually made a distribution in the Distributions section of Step-by-Step (you need to make a distribution even if the amount is negative). 

If all else fails, you can try adding $1 worth of miscellaneous income since distributing even that small of an amount is usually sufficient to push through excess deductions to the K-1(s).

View solution in original post

1 Reply
tagteam
Level 15

When preparing a 1041 for the final year of a trust, how do I get TT Business to populate the schedule K-1 Line 11A to correctly distribute the excess deductions?

Enter Forms Mode and ensure that your 1041 shows that the "Final return" box is checked (see screenshot).

Ensure that you have actually made a distribution in the Distributions section of Step-by-Step (you need to make a distribution even if the amount is negative). 

If all else fails, you can try adding $1 worth of miscellaneous income since distributing even that small of an amount is usually sufficient to push through excess deductions to the K-1(s).

View solution in original post

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